Analysis of nonfinancial data is important to the management accountant because
A) financial data are usually irrelevant.
B) nonfinancial data lend themselves more to computer analysis than do financial data.
C) managers make many decisions based solely on nonfinancial data.
D) nonfinancial data are easier to work with than financial data.

Question

Quizplus · Accepted Answer

Managers make many decisions based solely on nonfinancial data, such as customer satisfaction, employee morale, and market trends. The management accountant must analyze and incorporate these nonfinancial data into their decision-making processes in order to provide accurate and useful information to the management team. Financial data alone may not provide a complete picture of the organization's performance, so nonfinancial data are also important to consider.

Analysis of Nonfinancial Data Is Important to the Management Accountant