Which of the following problems occur with performance measurement systems that limit their
usefulness? Each correct answer represents a complete solution. Choose all that apply.
A.
It is dependent on gross aggregates, which tend to understate or ignore distributional
contributions and consequences.
B.
It is dependent on the timely occurrence of corrective action which is required for effective
management control.
C.
It is dependent on historical patterns and reluctant to accept new structural changes that are
capable of generating different outcomes
D.
It is dependent on summary data, which emphasizes averages and discounts outliers.
Explanation: