Both financial and nonfinancial performance measures are key inputs when evaluating the performance of managers.

Question

Quizplus · Accepted Answer

Both financial and nonfinancial performance measures provide important and complementary information when assessing the performance of managers. Financial measures, such as revenues, profits, and return on investment, are quantitative and objective indicators of financial performance. Nonfinancial measures, such as customer satisfaction, employee engagement, and sustainability efforts, are subjective and qualitative measures that provide insight into the broader impact of a manager's decisions and actions. Combining both types of measures allows for a more comprehensive evaluation of the overall performance of managers.

Both Financial and Nonfinancial Performance Measures Are Key Inputs When