Question

Discuss the following question: Is non-financial information ever useful in managerial decision making. Give a possible example.

Answer 1

True. Non-financial information is equally important and useful in managerial decision making and weights equal importance as Financial information.

Non-financial informations are quite to difficult to quantify which will help business in long run, but in any case we cannot ignore non-financial informations and ignoring the same exposes business to possible risks that often have serious financial impacts.

As per common practice financial information is usually the prime factor for decision making. However, there are also times when a decision is not financially viable should be accepted due to some important non-financial factors.

Below are the examples of non-financial informations :-

1.Corporate Social Responsibility

2. Reduction in enviromental footprints

3.Customers

4. Employees