Asked by Samantha Porras on Mar 10, 2024

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Which of the following statements is/are false?
i. Non-financial measures are only applicable when profit is not a principle goal of the firm.
ii. It is often difficult to take any action because of non-financial measures.
iii. At the operational level, it is often easier to relate to non-financial measures.

A) ii and iii
B) i and iii
C) i and ii
D) All of the given answers

Non-financial Measures

Performance indicators not expressed in monetary units but qualitatively, such as customer satisfaction or employee engagement.

Operational Level

Pertains to day-to-day activities and decisions within an organization that ensure tasks and operations are performed efficiently.

Profit Principle

The concept that business operations should aim to maximize earnings over costs.

  • Understand the concept and application of non-financial measures in evaluating firm performance.
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RP
Riley Ponder

Mar 10, 2024

Final Answer :
C
Explanation :
Statement i is false because non-financial measures can also be used to supplement financial measures to get a more balanced view of the firm's performance. Statement ii is false because non-financial measures can provide more insights and guidance for actions to be taken. Statement iii is true, as non-financial measures are often more tangible and easier to understand at the operational level.