Which of the following is true of backward-looking metrics?
A)They tell a company where it stands with respect to current performance.
B)They provide insights on future performance.
C)They are applied at regular intervals during an operating period.
D)They include company metrics such as late deliveries and late payments.
E)They include marketing metrics such as customer awareness and customer satisfaction.

Question

Quizplus · Accepted Answer

Backward-looking metrics are also known as lagging indicators and are used to measure a company's past performance, such as revenue, profit, and customer retention rates. They do not provide insights on future performance but rather tell a company where it stands with respect to its current performance. Late deliveries and payments are examples of company metrics that can be used as backward-looking metrics. Marketing metrics such as customer awareness and satisfaction are examples of forward-looking metrics.

Which of the Following Is True of Backward-Looking Metrics