Q13RQ - Horngren'S Financial And Managerial Accounting

Question

What is a key performance indicator?

Step-by-Step Solution

Answer

Answer

KPI is a quantifiable metric that shows how successfully a corporation is reaching important business objectives.

Step 1: Meaning of Key performance indicator

An outline performance metric called a key performance indicator (KPI) is employed by directors to decide on the off chance that the association is succeeding in its targets.

Step 2: Explaining a key performance indicator

A quantitative indicator of how successfully a company is completing its core goals is known as a key performance indicator (KPI). Associations use KPIs to measure their progress toward their goals. Low-level KPIs could focus on departmental tasks like sales, marketing, HR, or support, but high-level KPIs might focus on the business’s overall success.