Final answer:
Nonfinancial performance measures allow managers to make informed tradeoffs and are often used in conjunction with financial measures to evaluate a manager's overall performance. The correct answer is b) allow managers to make informed tradeoffs.
Step-by-step explanation:
Nonfinancial performance measures are tools used in evaluating an employee or a manager's performance based on non-monetary metrics. These may include customer satisfaction, product quality, employee engagement, and operational efficiency among others. In this context, nonfinancial performance measures:
- Are not rarely used, as they are important metrics for overall efficiency.
- Definitely allow managers to make informed tradeoffs, as they provide qualitative insight into performance.
- Are generally used in combination with financial measures for a more comprehensive understanding of performance for control purposes.
- Are typically not the sole basis of a manager's performance evaluation but are part of a broader set of criteria which includes financial performance.
Based on these points, the correct answer to the question is b) allow managers to make informed tradeoffs.