Strategic-Based Performance Measures Are Balanced Measures

question 28

Essay

Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.

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Definitions:

Partnership Investment

A contribution of assets by a partner to a partnership, often in exchange for a share of the partnership's profits.

Equipment

Assets used in the operation of a business or manufacturing process, which have a long-term use and value.

Income Ratio

A financial metric that compares various incomes to a particular benchmark, such as net income to sales or investment income to total assets.

Sharing Income

The distribution of profits among partners or shareholders in a business, often according to the proportion of ownership.