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Which of the following are non-financial objectives?
1 Growth of sales
2 Diversification
3 Contented workforce
4 Increase earnings per share
A 2 and 3
B 1, 2 and 3
C 2, 3 and 4
D 1, 3 and 4Answer is B. But I dont understand that why “growth of sales” is non-financial objective?
Thank you in advance for your reply
It would only be a financial objective if it was in $’s.
If it said growth in sales revenue, then it would be a financial objective, but just selling more units (which is what ‘growth in sales’ implies) is not a financial objective (for example, they might sell more units because they charge less per unit, so more sales does not always mean there will be more revenue).
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