An important difference between financial measures of quality and nonfinancial measures of quality is that ________.
A) financial measures of quality tend to be useful indicators of future long-term performance, while nonfinancial measures have more of a short-term focus
B) nonfinancial measures of quality tend to be useful indicators of future long-term performance, while financial measures of quality have more of a short-term focus
C) nonfinancial measures are generally too subjective to have any long-term value, while financial measures are too objective for taxation purposes
D) nonfinancial measures are generally too subjective to have any short-term value, while financial measures are too objective to have medium-term value

Question

Quizplus · Accepted Answer

Financial measures of quality tend to focus on short-term performance indicators such as revenue, profits, and return on investment, while nonfinancial measures of quality tend to focus on long-term factors such as customer satisfaction, employee engagement, and innovation. Nonfinancial measures are often more subjective and difficult to quantify, but they can provide valuable insights into the health and sustainability of a business over the long term.

An Important Difference Between Financial Measures of Quality and Nonfinancial