Page 435 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 435
Performance measurement techniques
Test your understanding 10
Which of the following statements relating to financial and non-financial
performance measures are correct? Select all that apply.
Tick
With financial performance measures there is a risk that managers
will take a more short-term view
Financial performance measure tend to be more forward looking
than non-financial performance measures
A disadvantage of non-financial measures is that it can be costly and
time consuming to gather the information required.
Non-financial measure are not affected by inflation and are therefore
directly comparable year on year
Financial measures are more applicable to manufacturing industries
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