Which of the following statements about performance measures is most correct and complete?
A) Most financial performance measures are lead indicators.
B) Most financial performance measures are lag indicators.
C) All non-financial performance measures are lead indicators.
D) All non-financial performance measures are lag indicators.

Question

Quizplus · Accepted Answer

Financial performance measures are typically lag indicators, as they are based on historical data and are measuring past performance. Non-financial performance measures can be either lead or lag indicators, depending on what they are measuring. Lead indicators are measures that can predict future performance, while lag indicators are measures of past performance. It is possible for both financial and non-financial measures to be lead indicators, but the statement that all non-financial measures are lead indicators is not accurate.

Which of the Following Statements About Performance Measures Is Most