
Financial and non-financial performance measures:
Financial measures are those quantitative measure, which has an economical value and can be express in monetary terms. Such as
Non-financial measures are those qualitative measures, which does not have any economical value and cannot be express in monetary terms. Such as customer satisfaction and number of defects, etc.
To state: Examples of financial and non-financial performance measures.

Explanation of Solution
The examples of financial and non-financial performance measures from different perspective are as follows:
- 1. Financial perspective: Net income, return on investment, firm’s stock price, residual income, etc.
- 2. Customer perspective: Brand image, customer satisfaction, market share in different geographic locations, number of repeat visits, etc.
- 3. Internal-business process perspective: Customer service, waiting time for customer enquiries, cleanliness of rooms, new services like wireless internet, reduction in waste output, energy and water consumption, etc.
- 4. Learning-and-growth perspective: Education skills, employees’ satisfaction, hours utilized in employee training, employee turnover, company’s achievement of ISO 14001:2015 certification for environment management, etc.
Hence, the examples of financial and non-financial performance measures are discussed as above.
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Chapter 23 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
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