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One of the Signs That a Firm's Performance Measurement System

question 21

Multiple Choice

One of the signs that a firm's performance measurement system is inadequate is when performance measures show improvement but this is not translated into profit. In which of the following circumstances may this occur?
i. Resources freed up through improvements may not have been utilised to improve profitability.
ii. Factors being measured are not critical success factors.
iii. Too many similar measures are used.
iv. There is a time lag between improved performance and improved profitability.


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