Chapter 10 Flashcards
1
Q
disadvantages to only focusing on financial info
A
ignores important variables such as productivity, quality
financial is mostly historical
focus on short term
2
Q
advantages of non financial performance measures
A
better info about key areas such as quality, customer/ employee satisfaction
info can be provided quickly
easy to calculate and easier for non finance managers to understand
less likely to be manipulated
3
Q
why is NFPI’s good for service based industry
A
as they have good human capital which isn’t considered in financials
4
Q
issues with qualitative data
A
surveys etc are all subjective - better to look at trends than individual scores
