Which statement is true regarding performance measurements in the public sector?

The statement that service quality is not inherently a financial concept is true in the context of performance measurements in the public sector. Unlike the private sector, where financial metrics often dominate performance evaluation, public sector organizations also prioritize the quality of services they provide to the community. Performance measurements in the public sector focus on outcomes and efficiency, which may not always translate directly into financial terms. For example, the success of a public program may be judged by its impact on community well-being rather than strictly its cost-effectiveness or profitability.

While financial statements do provide insight into a public sector organization's fiscal health, they do not encompass the full scope of performance measurement, which includes qualitative aspects such as service delivery, customer satisfaction, and social value. This indicates that while financial data is important, it does not wholly define the performance metrics crucial to public accountability.