Which of the following is NOT a reason why we measure financial performance?Group of answer choicesIt's too difficult to standardize a measurement systemGives autonomy to units for local operationsSummarize economic consequences of operationsAligns to organization's overall financial objectives
Question
Which of the following is NOT a reason why we measure financial performance?Group of answer choicesIt's too difficult to standardize a measurement systemGives autonomy to units for local operationsSummarize economic consequences of operationsAligns to organization's overall financial objectives
Solution
The option that is NOT a reason why we measure financial performance is "It's too difficult to standardize a measurement system". This is not a reason for measuring financial performance, but rather a potential challenge or obstacle in the process. The other options - giving autonomy to units for local operations, summarizing economic consequences of operations, and aligning to an organization's overall financial objectives - are all valid reasons for measuring financial performance.
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