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The short answer? None.
The long answer? None whatsoever.
A useful measure of performance for an organization, and I can only assume that that is the basis for the question, has to be able to generate a useful action plan or management plan in case this 'performance' is deemed unsatisfactory. Using profit as a measure of performance is not useful as the level of profit is determined by many factors outside the management control or quality of enabling approach of an organization. It would be the same as asking whether 'luck' or 'good fortune' are useful measures of performance.
What else can I help you with?
What is the importance of business calculations?
The importance of business calculations is that it helps in gauging the performance of a business. This will measure the growth of the business through computations of profit margins.
Advantages and disadvantages of working capital?
1.measure growth of the firm 2.for comparison with other firms 3.appraisol of management performance 1.additiona cost to firm 2.
What does it mean to make a profit?
Making a profit means earning more money from a business or investment than the costs incurred to produce goods or provide services. It is the difference between total revenue and total expenses, reflecting the financial success of an operation. A profit indicates that a business is operating efficiently and can reinvest in growth, pay dividends to shareholders, or provide a return to investors. In essence, profit is a key measure of economic performance and viability.
What are the advantages and the Disadvantages of sole proprietorship?
advantages: Easy to start up, anyone can do it, earn all the profit, only need authorization. site permit and name paperwork takes a day or 2 to complete. disadvantage: they get all the DEBTS, HIGH degree of responsibility, unlimited personal liability limited access to resources and lack of performance.
What is it called when money left after a business pays expenses?
The money left after a business pays its expenses is called profit. This can further be categorized into gross profit, operating profit, and net profit, depending on the specific deductions considered. Profit is a key indicator of a business's financial health and performance.
Advantages of profit center?
advantages of profit centre
What are the Advantages of a profit and loss statement?
what are the advantages of profit and loss statement?
What is the purpose of measuring profit and loss?
to be able to measure the efficiency and performance of the business.And compare with other competitors
Advantages of profit and loss?
Advantages of profit and loss? keep track of your profits
What are the advantages and disadvantages of merit pay to employees?
Advantages: - motivating and retaining key talent - getting unmotivated individuals to improve productivity Disadvantages: - the performance of a complex job as a whole is often reduced to a simple, often single measure of performance such as profit, without considering other factors that make up overall performance - performance related pay can be disadvantageous in that it can create the potential for rifts among employees if they feel they are being treated unfairly or unequally if there are not strict and clear stipulations in place for the system. - employees may only be inclined to perform work that is measured in their performance appraisal - employees are not as motivated by monetary incentives as employers once thought - assumes it is possible to objectively measure performance
What does controllable profit mean?
Controllable profit measures managerial performance Divisional profit measures divisional performance.
What are the advantages of diversification?
to maximize the profit
What are the advantages of office work?
the advantages of office work is earn profit
What is the importance of business calculations?
The importance of business calculations is that it helps in gauging the performance of a business. This will measure the growth of the business through computations of profit margins.
What are some advantages of commercial patterns?
for profit
Is a measure of income or profit divided by the investment required to obtain that income or profit?
Profit
What is the difference between gross profit and EBITDA?
Gross profit is the revenue minus the cost of goods sold, while EBITDA is a measure of a company's operating performance that adds back interest, taxes, depreciation, and amortization to net income.
