Which of the Following Is Considered to Be an Advantage

question 15

Multiple Choice

Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard?

• A)Nonfinancial information is most helpful in analyzing a company's past performance, while financial information is most useful in evaluating potential future performance.
• B)Nonfinancial information provides the short-term perspective while financial information provides the long-term perspective of performance.
• C)Nonfinancial information reflects the company's current and potential competitive advantage, while financial information tends to focus on a firm's achieved financial performance.
• D)Nonfinancial information should be included with financial information because it is more reliable than financial information.

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Definitions:

Total Cost

The sum of all expenses incurred by a firm in producing goods or services, including both fixed and variable costs.

Maximizing Profits

The process of adjusting production and sales strategies to achieve the highest possible return from operations.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs.

Price

The amount of money expected, required, or given in payment for something.