An important difference between financial measures of quality and nonfinancial measures of quality is that ________.
A) financial measures of quality tend to be useful indicators of future long-term performance, while nonfinancial measures have more of a short-term focus
B) nonfinancial measures of quality tend to be useful indicators of future long-term performance, while financial measures of quality have more of a short-term focus
C) nonfinancial measures are generally too subjective to have any long-term value, while financial measures are too
D) nonfinancial measures are generally too subjective to have any short-term value, while financial measures are too

Question

Quizplus · Accepted Answer

Financial measures of quality tend to focus on short-term financial performance, such as return on investment or cost savings, while nonfinancial measures of quality tend to focus on long-term performance, such as customer satisfaction or employee engagement. Nonfinancial measures are often more subjective and difficult to quantify, but they are important indicators of future success and can provide a more comprehensive view of organizational performance.

An Important Difference Between Financial Measures of Quality and Nonfinancial