Which of the Following Is Not a Nonfinancial Quality Metric

question 112

Multiple Choice

Which of the following is not a nonfinancial quality metric?

• A) Process yield (i.e., good output/total output).
• B) Number of defective parts produced (e.g., parts-per-million, ppm).
• C) Number of machine setups.
• D) Machine up-time (or, machine down-time).
• E) Trend in dollar amount of inventory held.

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Definitions:

Managerial Performance

Assessment of the effectiveness and efficiency of managers in achieving business objectives, often evaluated through financial and non-financial metrics.

Residual Income

The income that exceeds the required return on investment or minimum acceptable rate of return set by management.

Corporate Minimum Required Rate of Return

The lowest acceptable rate of return on an investment that a corporation deems sufficient for its operations and growth.

Division's Turnover

A financial metric that measures the revenue generated by a specific division of a company relative to its assets, used to evaluate the division's efficiency in generating sales.