Which statement is FALSE about performance metrics?
Answer
| A. | The more a manager’s reward depends on a performance metric, the more incentives the manager has to take actions to maximize that measure. | |
| B. | Top management should define the performance metric to promote goal congruence and base enough reward on it to achieve managerial effort. | |
| C. | The more uncontrollable factors affect a manager’s reward, the less risk the manager bears. | |
| D. | The cost benefit criterion leads companies to rely on imperfect performance metrics. |