Asked by Marvelous Abraham on Jun 18, 2024
Verified
In making decisions management ordinarily considers both financial and nonfinancial information.
Nonfinancial Information
Data regarding a company's operations, strategies, risks, and opportunities that is not quantifiable in monetary terms.
- Appreciate the role of both financial and nonfinancial information in managerial decision-making.
Verified Answer
AB
Alexandra BoroffJun 22, 2024
Final Answer :
True
Explanation :
Management needs to consider both financial and nonfinancial information in order to make informed and effective decisions. Financial information includes data related to revenues, expenses, profits, and investments, while nonfinancial information can include qualitative factors such as customer satisfaction, employee morale, and brand reputation. Without taking both types of information into account, management may not have a complete understanding of the impact and potential outcomes of their decisions.
Learning Objectives
- Appreciate the role of both financial and nonfinancial information in managerial decision-making.
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