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10.Which of the following statements about non-financial measures are true?
(1) Non-financial measures can be useful for indicating future financial performance
(2) Non-financial measures may help to prevent short termism
A.Statement 1 is true and statement 2 is false
B.Statement 1 is false and statement 2 is true
C.Both statements are true
D.Both statments are false
10.答案：Both statements are true
Statement 1 is true. For example the non-financial measure of poor customer satisfaction indicates that the financial measure of future sales may change.
Statement 2 is true. Financial performance measures used alone may provide managers with shorter term incentives which could be detrimental to the business in the long term. For example price increases applied in the short term may meet financial targets but damage customer relations in the longer term.
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