One Disadvantage of Using Nonfinancial Measures to Evaluate Performance Is

question 114

True/False

One disadvantage of using nonfinancial measures to evaluate performance is that they are only available on a monthly, quarterly, or annual basis.

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Definitions:

Required Return

The minimum return that an investor expects to achieve by investing in a particular asset, taking into account the asset's risk.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal annual amount.

Net Working Capital

The difference between a company's current assets and current liabilities.

Variable Costs

Expenses that change in proportion to the activity of a business such as costs for raw material which increase as production increases.