Assessing the Use and Role of Nonfinancial Performance Indicators This question pertains to the use of nonfinancial performance indicators as part of a comprehensive managementaccounting and control system. You are asked to think critically about the value and challenges ofusing such data for performance-evaluation purposes. The following source should be accessed andread prior to answering the questions that appear below: Christopher D. Ittner and David F. Larker,“Coming Up Short on Non-financial Performance Measurement,” Harvard Business Review,November 2003, pp. 88–95.Required1. What are the primary benefits of incorporating nonfinancial performance indicators as part of a comprehensive management accounting and control system?2. Why do Ittner and Larker believe that many companies fail to realize the kinds of benefits listed inrequirement 1?3. In 2008, the Institute of Management Accountants (IMA) revised its definition of managementaccounting (see www.imanet.org//-/media/6c984e4d7c854c2fb40b96bfbe991884.ashx?as=1&mh=200&mw=20). After accessing this statement, comment on an appropriate role of the management accountant with regard to the development and use of nonfinancial performance indicators.
Assessing the Use and Role of Nonfinancial Performance Indicators This question pertains to the use of nonfinancial performance indicators as part of a comprehensive management
accounting and
using such data for performance-evaluation purposes. The following source should be accessed and
read prior to answering the questions that appear below: Christopher D. Ittner and David F. Larker,
“Coming Up Short on Non-financial Performance Measurement,” Harvard Business Review,
November 2003, pp. 88–95.
Required
1. What are the primary benefits of incorporating nonfinancial performance indicators as part of a comprehensive management accounting and control system?
2. Why do Ittner and Larker believe that many companies fail to realize the kinds of benefits listed in
requirement 1?
3. In 2008, the Institute of Management Accountants (IMA) revised its definition of management
accounting (see www.imanet.org//-/media/6c984e4d7c854c2fb40b96bfbe991884.ashx?
as=1&mh=200&mw=20). After accessing this statement, comment on an appropriate role of the management accountant with regard to the development and use of nonfinancial performance indicators.
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