Nonfinancial performance measures in the balanced scorecard such as customer satisfaction are often _____ of future financial performance.

A) leading indicators
B) lagging indicators
C) poor indicators
D) not considered an indicator

Nonfinancial Performance Measures

Nonfinancial performance measures are metrics used to assess a company's efficiency, quality, or performance in areas not directly related to financial metrics, such as customer satisfaction or employee engagement.

Leading Indicators

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future economic activities.

Future Financial Performance

Predictions or estimates regarding a company's revenue, expenses, and profitability in upcoming periods.