Traditional financial control systems have recently been criticized because:
A) They use flexible, not static, budgets.
B) They generally lead to goal-congruent behavior on the part of managers.
C) They focus more in improving basic business processes than short-term financial results.
D) They fail to incorporate nonfinancial performance indicators into the evaluation process.
E) They provide performance data on a real-time basis.

Question

Quizplus · Accepted Answer

Traditional financial control systems often rely solely on financial indicators such as profits or return on investment to evaluate performance, neglecting nonfinancial indicators such as customer satisfaction or employee engagement. This has been criticized as it does not provide a holistic view of the organization's performance.

Traditional Financial Control Systems Have Recently Been Criticized Because