Identify four qualities that are pertinent to accounting measures.
What will be an ideal response?
ANSWER:
Four qualities that should be considered in analyzing the worth of a measure are:
(1) Objectivity (verifiability)—the degree of consensus among measurers.
(2) Bias (usefulness)—a measure of predictive ability.
(3) Timeliness—measurements (financial statements) should be up-to-date.
(4) Cost constraints—data are costly to produce.
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Moderate vertical differentiation, high horizontal differentiation, and high formalization are characteristics of an organization that indulges in ________.
A. small-batch production B. mass production C. unit production D. process production
One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company. This is called:
A. a takeover. B. an acquisition. C. a subsidiary. D. a joint venture.
In questionnaire design, a question such as "Do anti-lock braking systems reduce car accidents?"
A. asks two questions at once. B. steers respondents to a particular response. C. is a question that respondents cannot easily or accurately answer. D. is a question that respondents are reluctant to answer because the information is sensitive. E. is one sided, presenting only one side of an issue.
A firm's ability to compete through people depends on its ability to manage human capital.
Answer the following statement true (T) or false (F)