Question

nonfinancial performance measures . question 10 options: a) are rarely used to evaluate overall efficiency b) allow managers to make informed tradeoffs c) are usually used in combination with financial measures for control purposes d) are often the sole basis of a manager's performance evaluation

Answer 1

Nonfinancial performance measures allow managers to make informed tradeoffs and are often used in conjunction with financial measures to evaluate a manager's overall performance. The correct answer is b) allow managers to make informed tradeoffs.

Step-by-step explanation:

Nonfinancial performance measures are tools used in evaluating an employee or a manager's performance based on non-monetary metrics. These may include customer satisfaction, product quality, employee engagement, and operational efficiency among others. In this context, nonfinancial performance measures:

• Are not rarely used, as they are important metrics for overall efficiency.
• Definitely allow managers to make informed tradeoffs, as they provide qualitative insight into performance.
• Are generally used in combination with financial measures for a more comprehensive understanding of performance for control purposes.
• Are typically not the sole basis of a manager's performance evaluation but are part of a broader set of criteria which includes financial performance.

Based on these points, the correct answer to the question is b) allow managers to make informed tradeoffs.