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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Definitions:

Competitive And Ambitious

Traits that involve a desire to succeed or excel, often by comparing oneself to others or striving for higher achievements.

First-Born

The child who is born first in the birth order of a family, often discussed in the context of their psychological traits and developmental experiences.

Only Child

An individual who has no siblings and thus receives undivided attention and resources from their parents, affecting their social and personality development.

Youngest Child

A term denoting the last-born child in a family, who may exhibit certain personality traits or developmental patterns distinct from their siblings due to their birth order.