Non-Financial Performance Measures (NFPMs)are Better Than Financial Measures in That

question 145

Multiple Choice

Non-financial performance measures (NFPMs) are better than financial measures in that NFPMs

• A)provide a better indication of customer satisfaction.
• B)may better predict the direction of future cash flows.
• C)directly measure how well an organization does those things that create shareholder value.
• D)all of the above

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Definitions:

Trading Up

A business strategy where a company encourages customers to purchase higher-priced items, upgrades, or additional features to increase sales.

Trading Down

A consumer behavior pattern where buyers opt for cheaper or lower-quality products usually due to economic constraints or changes in priorities.

Product Simplification

The strategy of reducing a product's complexity to lower production costs, improve usability, or meet consumer demands for simplicity.

Trade Name

A brand name under which a product or service is marketed and distinguished from other products.