Only accounting measures of performance can be used in accurately measuring the performance of divisions within a diversified firm.

Question

Quizplus · Accepted Answer

While accounting measures such as revenue and profit are important in measuring divisional performance, it is also important to consider non-financial measures such as customer satisfaction and employee engagement. Additionally, some divisions may have different goals and objectives that cannot be accurately measured through accounting measures alone. Therefore, a combination of accounting and non-financial measures should be used to accurately measure the performance of divisions within a diversified firm.

Only Accounting Measures of Performance Can Be Used in Accurately