The importance of creating performance measures stretches from internal managers all the way to external investors. Internal managers can use different performance measures to help determine if a company is running efficiently and if it is meeting standards that were preset. For example, an internal manager of a manufacturing plant can use performance measures to see if enough products are being made to meet demand, if the machines are being utilized for the most profit, and if there is enough employees to efficiently operate the machines. Executive management can use performance measures to determine if their organization is on track to be profitable for the year and, if not, they can use them to determine why not. Investors and anal...
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