All the Following Are Limitations of Short-Term Financial Performance Indicators

question 86

Multiple Choice

All the following are limitations of short-term financial performance indicators except:

• A) Employees and managers can take actions that improve short-term financial performance at the expense of long-term performance.
• B) Focusing on individual cost variances can result in optimum local but not global (i.e., firm-wide) performance.
• C) Operating personnel may not readily understand or be able to interpret financial-performance indicators.
• D) Senior managers typically find non-financial performance indicators more useful than summary financial-performance indicators.

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