Asked by Carly Koncz on Jun 19, 2024
Verified
Nonfinancial information that management might evaluate in making a decision would not include
A) employee turnover.
B) contribution margin.
C) the environment.
D) the corporate profile in the community.
Nonfinancial Information
Data that relates to the operational, environmental, and social aspects of a business, which cannot be easily quantified in monetary terms.
Employee Turnover
The rate at which employees leave a company and are replaced by new employees.
Contribution Margin
The difference between the sales revenue of a product and its variable costs, used to cover fixed expenses and contribute to profits.
- Comprehend how incremental analysis is applied in different managerial decisions, including special orders, replacing equipment, and decisions regarding further processing.
Verified Answer
FM
Faisal MangalJun 25, 2024
Final Answer :
B
Explanation :
Contribution margin is a financial metric and is not a nonfinancial information. The other choices, employee turnover, the environment, and corporate profile in the community, are all examples of nonfinancial information that management might consider when making a decision.
Learning Objectives
- Comprehend how incremental analysis is applied in different managerial decisions, including special orders, replacing equipment, and decisions regarding further processing.