Which of the Following Is a Nonfinancial Performance Measure

question 120

Multiple Choice

Which of the following is a nonfinancial performance measure?

• A) Return on investment
• B) Net income as a percentage of sales
• C) Cost of poor quality as a percentage of sales
• D) Average number of customers served per hour

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Definitions:

Encumbered Assets

Assets that are used as security or collateral for a loan or debt, restricting their free use or disposal by the owner.

Secured Borrowing

A type of loan in which the borrower pledges an asset as collateral for the loan, which the lender can claim if the loan defaults.

Financial Statements

Formal records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Sale and Leaseback Arrangement

A financial transaction where one sells an asset and leases it back for the long-term; thereby retaining its use while freeing up the cash invested in the asset.