An Exploration of the Use of Financial and Nonfinancial Measures of Performance by Executives in a Service Organization.

Key Points

• The aim is to investigate how executives utilize financial and nonfinancial performance measures within a service organization.
• Examined the application of financial and nonfinancial measures by executives.
• Identified the need for enhanced nonfinancial performance metrics in management accounting.
• Developed judgment models to understand the usage of these measures.
• Found a significant reliance on financial measures among executives.
• Highlights the increasing importance of nonfinancial measures for comprehensive performance assessment.
• Indicates a gap in current management accounting practices regarding nonfinancial metrics.