Which of the following statements is true about performance measures?

Prepare for the CPFO Accounting Test. Study with multiple choice questions, each with hints and explanations. Set yourself up for success!

Performance measures are essential tools that help organizations assess the effectiveness and efficiency of their programs. The statement emphasizing that these measures must be based on program goals and objectives that align with a program's mission highlights a fundamental aspect of performance evaluation. When performance measures are closely tied to specific goals and objectives, they ensure that evaluations are relevant and meaningful.

A strong alignment with the program's mission enables stakeholders to understand the impact of the program within its intended context. This connection facilitates both accountability and improvement, providing insights that can guide decisions and strategies. When performance measures reflect the mission, they also boost engagement and support among stakeholders, as the outcomes are framed around shared goals and organizational values.

Additionally, while performance measures can encompass both financial and non-financial aspects, their primary focus should always return to how well the program is achieving its stated objectives in the context of its mission. Thus, the emphasis on alignment with the program's mission distinguishes it as the core principle in understanding the utility of performance measures.

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