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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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