Which of the following is not indicated as an advantage of using nonfinancial performance measures, relative to financial performance measures, as part of an operational control system?
A) Nonfinancial performance indicators are readily understandable by operating personnel.
B) Nonfinancial performance indicators can be viewed as drivers of future financial performance.
C) Nonfinancial performance indicators direct attention to precise problem areas that need attention.
D) Nonfinancial performance measures are more reliable than financial performance measures.

Question

Quizplus · Accepted Answer

The other options (A, B, and C) are commonly cited advantages of using nonfinancial performance measures. However, nonfinancial performance measures are often subjective and prone to measurement error, making them less reliable than financial performance measures.

Which of the Following Is Not Indicated as an Advantage