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Which of the following is a reason why financial measures may not convey the full picture of a company's performance?

Non-financial indicators are too difficult to quantify

Modern businesses are not concerned with product quality

Traditional accounting systems do not measure important variables (correct)

Financial measures are too complex to understand

What are some examples of non-financial indicators that companies may use to measure their performance?

Advertising spend and marketing ROI

Sales revenue and profit margin

Employee satisfaction and turnover rate (correct)

Inventory turnover and accounts payable

Why is successful execution of variables like product quality and customer satisfaction essential for a company's success?

They are important factors in competing in the modern business environment (correct)

They help the company save money

They are directly measured by a traditional accounting system

They make the company look good to investors

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Podcast

Questions and Answers

Which of the following is a reason why financial measures may not convey the full picture of a company's performance?

What are some examples of non-financial indicators that companies may use to measure their performance?

Why is successful execution of variables like product quality and customer satisfaction essential for a company's success?

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Studying That Suits You

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