Question

Which of the following is an advantage of nonfinancial measures of​ quality? A. They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs. B. They detect and provide immediate​ short-run feedback on whether​ quality-improvement efforts are succeeding. C. They direct attention to financial processes that help managers identify the precise problem areas that need improvement. D. They focus​ managers' attention on how poor quality affects operating income.

Answer 1

They detect and provide immediate​ short-run feedback on whether​ quality-improvement efforts are succeeding is an advantage of non-financial measures of​ quality.

Option: B

Explanation:

The indicators that can not be represented in monetary units is understood as a non-financial metrics. Popular financial indicators involve revenue, margin of income, total value of the order and return on equity. Since metrics for financial success, like profits or yield on assets, are called trailing performance indicators.

The initiatives do not discuss improvement with respect to consumer needs or rivals, nor other non-financial targets which may be essential in maintaining productivity, competitive stability and tactical long-term objectives, as it prefer showcasing only short-run feedback to check whether efforts made for quality increment succeeded or not.