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which of the following is an example of nonfinancial performance measure? question 4 options: a) quantity discounts obtained on order of large quantity b) direct materials price variance c) percentage of products started and completed without requiring any rework d) direct manufacturing labor efficiency variance

User Keiku
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Final answer:

Among the options, the percentage of products started and completed without requiring any rework is an example of a nonfinancial performance measure. It indicates quality and operational efficiency beyond mere financial metrics. Therefore, the correct option is C.

Step-by-step explanation:

An example of a nonfinancial performance measure among the given options is c) the percentage of products started and completed without requiring any rework. This indicator reflects the quality of the production process, as it measures the efficiency at which products are produced correctly the first time, without the need for additional corrections or adjustments.

Nonfinancial performance measures are critical as they provide insight into aspects of an organization's performance that are not captured by traditional financial metrics. These can include customer satisfaction levels, product quality, brand strength, and operational efficiency.

While financial measures, such as quantity discounts obtained, direct materials price variance, and direct manufacturing labor efficiency variance, play a vital role in assessing a company's economic health, nonfinancial measures help to ensure that the company's long-term strategies for growth and improvement are on track and can drive financial success in the future.

User Tseshevsky
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