Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 23

Financial vs. Nonfinancial Performance Indicators for Operational Control As indicated in the text, both financial and nonfinancial performance indicators play important roles in an organization's overall operational control system. Explain, concisely, the relative advantage of each type of performance indicator. That is, what role would each type of performance indicator play in helping to ensure that operations are in control ( Hint: Think about this issue both from the standpoint of managers and from the standpoint of operating personnel.)