While Performing Analysis of Their Overall Performance, Organizations Will Often

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The Answer is For financial performance, results are compared to past performance for relevant metrics. These measurements are common because they are both objective and measurable. Some commonly used financial measurements include: the company's gross margin to determine a firm's ability to mark-up from cost; the company's earnings-per-share to evaluate the return on a single share of stock; and the company's turnover ratios to evaluate a company's effectiveness at collecting accounts receivables or selling inventory. There are many other values used as well. Nonfinancial performance is different than financial performance in that it focuses on what is happening right now as compared to what has already transpired. An organization can use different nonfinancial measurement for different departments to measure performance. For example, a Human Resources department could use employee training satisfaction to measure how satisfied employees are with the training provided, and an Accounting department could look at vacation days earned versus vacation days used to determine if employees are taking adequate time to relax.

While Performing Analysis of Their Overall Performance, Organizations Will Often

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While Performing Analysis of Their Overall Performance, Organizations Will Often

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