What Are the Five Criteria for Measuring the Effectiveness of a Performance

question 70

Essay

What are the five criteria for measuring the effectiveness of a performance management system?

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, a component of a company's cash flow statement.

Equipment

Tangible, long-term assets used in the operation of a business to produce goods or provide services, usually subject to depreciation over their useful lives.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.

Operating Activities

Activities that relate to the primary, day-to-day operations of a business, such as selling products or providing services.