alleryStart learning →Staff chasing the metric at the cost of real quality shows which risk?
ACapital charge
BBenchmark gap
CPerverse incentives
DAttribution gap
Answer & Solution
Correct answer: C. Perverse incentives
KPIs can create perverse incentives when employees work to the measurement instead of the actual value of work.
Keep practising Strategic Performance Measures
Browse all Strategic Performance Measures questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
Which framework manages the implementation of corporate strategies?The performance prism considers the needs of whom?Value-based management puts whose interests first?In which year did Robert Hamilton publish his book on profit less a capital charge?How many drivers does the widely used shareholder value model have?Which is one of the seven shareholder value drivers?Who argued corporate strategy is tested by value created for shareholders?What is the first stage of the 12 stage benchmarking method?