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 use static,not flexible,budgets.

Question

Quizplus · Accepted Answer

Traditional financial control systems focus solely on financial metrics, which may not capture important nonfinancial aspects of a business's performance. By failing to incorporate nonfinancial indicators into the evaluation process, traditional financial control systems may not provide a comprehensive view of a company's overall health and performance. Therefore, they have been criticized for their limited scope.

Traditional Financial Control Systems Have Recently Been Criticized Because