Analysis of Nonfinancial Data Is Important to the Management Accountant

question 24

Multiple Choice

Analysis of nonfinancial data is important to the management accountant because

• A) financial data are usually irrelevant.
• B) nonfinancial data lend themselves more to computer analysis than do financial data.
• C) managers make many decisions based solely on nonfinancial data.
• D) nonfinancial data are easier to work with than financial data.

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Definitions:

Observer Drift

A phenomenon that results in a different behavior being observed and recorded than the one originally targeted. Observer drift can occur even when a target behavior is operationally defined and solidly passes the stranger test.

Objectivity Lapse

A failure to maintain neutrality or impartiality, especially in making judgments or decisions.

Occurrence Subjectivity

The degree to which perceptions or analyses of events are influenced by personal feelings, tastes, or opinions.

Reactive Effects

The changes in behavior or responses that occur as a result of being observed or knowing that one is part of a study, often considered a form of bias.