Which of the following statements about performance evaluation is true?
A) Non-financial measures are less useful than financial measures because they are not as objective
B) Financial measures are less useful than non-financial measures because they are biased
C) A combination of financial and non-financial measures gives a more useful picture of organisational performance than either one alone
D) Only one or two non-financial performance measures should be used

Question

Quizplus · Accepted Answer

A combination of financial and non-financial measures gives a more comprehensive view of the organizational performance than relying solely on one type of measure. Furthermore, non-financial measures, while less objective than financial measures, can provide valuable information about an organization's success in meeting goals related to customer satisfaction, employee satisfaction, and other important factors that cannot be measured with monetary values. It is not recommended to limit the number of non-financial measures used, as this can limit the overall scope of performance evaluation.

Which of the Following Statements About Performance Evaluation Is True