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:

Absolute Measures

Statistical tools used to assess the total magnitude of an entity or phenomenon without comparison to other entities or phenomena.

Profitability

The financial metric that measures the degree to which a company or a project generates profit compared to its costs.

Standards

Established norms or criteria in various fields that define quality, performance, or procedures to ensure consistency and reliability.

Goodwill

An intangible asset that represents the value of a business's brand, customer relations, employee morale, and other factors not reflected in physical or financial assets.