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.