Which of the following statements is most correct about the selection of performance measures?

A) The key stakeholders are the owners of the firm and therefore financial performance measures will always be the most crucial.
B) In today's environment, firms are likely to have an appropriate mix of both financial and non-financial performance measures.
C) In the modern manufacturing environment, it is likely that non-financial performance measures will replace financial performance measures.
D) Because of the focus on critical success factors, it is likely that non-financial performance measures will replace financial performance measures.

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Christina Chaiken · Accepted Answer

Final Answer : B, Explanation :  In today's environment, firms are likely to have an appropriate mix of both financial and non-financial performance measures. This is because financial measures provide insight into the financial health of the organization and its ability to generate profits, while non-financial measures provide insight into areas such as customer satisfaction, product quality, and employee satisfaction, which are important for long-term success. Combining both types of measures provides a more comprehensive view of the organization's performance, enabling managers to make informed decisions. The other options are incorrect because they suggest a shift away from financial measures, which is not entirely accurate.

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