Q:) Which of the following statements is false regarding performance measurement in Joe company?

Multiple Choice

• In a well-designed balanced scorecard, financial performance measures should be integrated with non-financial measures.
• If unit sales increase, sales margin generally increases due to the effect of operating leverage.
• One major disadvantage of the residual income approach is that it cannot be used to compare the performance of divisions of different sizes.
• Sales margin measures the ability to generate revenue for each dollar invested in operating assets.
• Inspecting, moving, and queuing time add no value to the product and should be eliminated as much as possible.