Which of the following BEST describes the weakness of management accounting reports as performance measures?
A . Not flexible to fit specific department’s environments
B . Not directly related to quality, customer service, reliability, or flexibility
C . Measure of return on investment can be misleading
D . Reports are too late for management to take action
Answer: B
Explanation:
The biggest weakness of management accounting reports as performance measures is that they are not directly related to issues such as quality, customer service, reliability, or flexibility.