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financial measures as opposed to nonfinancial measures

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The financial team has been properly selected and charged to proceed with their analysis of Better Yet's financial statements. In the course of their evaluation, they will be assessing the firm's operating performance, benchmarking their competitors, and looking at the industry using financial ratios as their source of measurement. However, the CEO of CoNet agrees with numerous practitioners who promote the use of nonfinancial measures as well as financial measurements to evaluate the performance of a given firm. Nevertheless, Mark agrees that nonfinancial measurements can be valuable, and he tends to support the premise that when evaluating operating performance, benchmarking competitors, and comparing industry results, nonfinancial measurements have little measurable value.

To address this potential dilemma, you have been asked to present a position paper comparing the effectiveness and reliability of using financial measures as opposed to nonfinancial measures.

4 - 5 paragraphs - original - apa references

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Financial measures are important as they provide direct link to company's financial results. They provide conclusions based on objective facts. Financial measures provide evaluations based on objectives facts and not subjective judgments. They provide strong basis for each argument with quantitative figures.

However, non financial measures also help in evaluating certain areas that are not covered by financial measures. The main advantage of using non financial measures is the fact that such measures allow us to highlight "blue savings" or indirect savings that are not visible via financial measures. For example, changes in corporate culture, improved customer satisfaction levels, etc. In today's competitive business environment where ...

Solution Summary

To address this potential dilemma, you have been asked to present a position paper comparing the effectiveness and reliability of using financial measures as opposed to nonfinancial measures.

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