The Key to Using Key Performance Indicators to Drive Performance

question 15

True/False

The key to using key performance indicators to drive performance is to understand the cause-and-effect relationships they represent.

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Definitions:

Production Expenses

Costs directly associated with the manufacturing of goods or provision of services, including raw materials and labor.

Sensitivity Analysis

A technique used in finance and economics to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.

Required Rate Of Return

The minimum percentage return that investors expect to earn from their investment in a company or project.

Base Level

The initial or starting point used for comparison or measurement purposes in various contexts.