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.
A) i,ii and iii
B) ii,iii and iv
C) i,ii and iv
D) i,iii and iv

Question

Quizplus · Accepted Answer

Resources not being utilized, non-critical success factors being measured, and time lags can all lead to improved performance measures not translating into profitability.

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