Measuring and Evaluating Performance Is Important to Managers

question 69

Short Answer

Measuring and evaluating performance is important to managers.They need to explore how individual and performance measures and other measures can be combined to create a better tool for measuring past performance and driving the future achievement of strategic goals.
Required:

Define the following terms and give one example of each that you can use in this class.

a. Lagging indicator

b. Leading indicator

c. Nonfinancial measure

d. Benchmarking

e. Best practices

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Definitions:

Net Markdowns

The reduction in the selling price of goods, subtracted from the original or previous selling price, often to clear surplus inventory.

Understated

Describes an amount reported lower than it actually is, either in financial statements or any other reporting context.