Asked by Alexis Rampey on Apr 30, 2024
Verified
A company should only use nonfinancial performance measures when financial measures cannot be calculated.
Nonfinancial Performance Measures
Metrics used to assess a company's operational and managerial performance that do not involve monetary values, such as customer satisfaction or employee turnover rates.
Financial Measures
These are metrics used to assess a company's financial performance and health, such as profit margins, return on investment, and liquidity ratios.
Company Use
A term that refers to the way in which a company utilizes resources or strategies for business operations.
- Recognize the value of non-monetary performance indicators in the analysis of business performance.
Verified Answer
CS
Connor SimpsonMay 06, 2024
Final Answer :
False
Explanation :
Nonfinancial performance measures can be used in addition to financial measures to provide a more complete picture of a company's performance. They can also be used when financial measures are not the most relevant or appropriate way to measure performance, such as in the case of measuring social or environmental impact.
Learning Objectives
- Recognize the value of non-monetary performance indicators in the analysis of business performance.