Nonmonetary accounting information

Definition

Nonmonetary accounting information includes qualitative data and operational metrics that aid managerial decision-making without direct financial values. It often encompasses performance indicators, employee satisfaction metrics, and production efficiency statistics.

5 Must Know Facts For Your Next Test

1. Nonmonetary accounting information is crucial for internal decision-making processes.
2. It helps managers understand aspects of the business that aren't easily quantifiable in monetary terms.
3. Examples include customer satisfaction scores, employee turnover rates, and production downtime.
4. This type of information complements financial data to provide a more comprehensive view of organizational performance.
5. Nonmonetary information is often used in balanced scorecards and other strategic management tools.

Review Questions

• What are three examples of nonmonetary accounting information?
• Why is nonmonetary accounting information important for managers?
• How does nonmonetary accounting information complement financial data?

Related terms

Balanced Scorecard: A strategic planning tool that uses both financial and nonfinancial measures to provide a balanced view of organizational performance.

Key Performance Indicators (KPIs): Metrics used to evaluate factors crucial to the success of an organization.

Qualitative Data: Non-numeric information that describes qualities or characteristics, often used in conjunction with quantitative data in decision-making processes.