Teaching and Learning Financial Performance Measurement: Undergraduate Students’ Perceptions of Objectivity and Sufficiency

Abstract

This study examines undergraduate accounting students’ perceptions of financial performance measurement in the teaching and learning context of management accounting. Specifically, it focuses on two dimensions: objectivity and sufficiency. Objectivity refers to the extent to which students perceive financial measures as neutral, factual, and fair, while sufficiency refers to the extent to which students believe financial measures alone provide enough information to evaluate managerial performance. A descriptive survey was conducted among 30 Accountancy students who had learned the topic of performance measurement systems. The questionnaire consisted of Likert-scale items measuring objectivity and sufficiency, followed by one scenario-based question requiring students to choose between a manager with higher return on investment (ROI) but weaker staff-related outcomes and a manager with lower ROI but stronger staff loyalty and innovation. The data were analysed using descriptive statistics, including mean scores, frequencies, and percentages. The findings show that students had moderate perceptions of the objectivity of financial performance measures, with a mean score of 3.11, and mixed perceptions of their sufficiency, with a mean score of 2.95. In the scenario-based question, 80% of students selected the manager with the higher ROI. These findings suggest that although students may recognise the limitations of financial measures, financial outcomes still appear influential in their evaluation preference. The study supports the need for teaching approaches that encourage students to consider both financial and non-financial information when evaluating managerial performance. Future research may include larger samples and additional scenarios to provide deeper insight into students’ decision-making processes.