Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not verifying that the non-financial measures lead to financial performance. They do not analyze the relationships to validate the linkages.

Question

Quizplus · Accepted Answer

Companies may identify the non-financial measures but fail to validate the linkages between these measures and financial performance. This mistake can lead to incorrect prioritization and focus on non-value adding activities. It is important to validate the linkages to ensure that the right non-financial measures are selected and to ensure that they contribute to financial performance.

Many Companies Do Not Identify and Act on the Correct