1. Waterfield Company has three decentralized segments. Executive managers are looking for a way to measure the performance of each segment. Which of the following metrics might be used for this purpose?

   a. the material quantity variance in each segment

   b. the return on investment of each segment

   c. the operating cash flows for the entire company

   d. the number of training sessions provided to employees in each segment

2. A company's balanced scorecard may include

   a. both nonfinancial and financial metrics

   b. only nonfinancial metrics

   c. only financial metrics

   d. neither nonfinancial nor financial metrics

3. Nonfinancial performance measures in the balanced scorecard such as customer satisfaction are often _____ of future financial performance.

   a. poor indicators

   b. leading indicators

   c. not considered an indicator

   d. lagging indicators