Question

What is a performance measurement system?

a. Authorizing transactions, recording transactions, and maintaining control of related assets should be separated among different employees.

B. A company’s plan to 1.) Safeguard the company’s assets, and 2.) Improve the accuracy and reliability of accounting information.

c. Formal Process by which managers at all levels gain information about performance of the organization and employee tasks within the firm and judge that performance against pre-established criteria as set out in financial statements, budgets, plans, and goals.

Answer 1

C. Formal process by which managers at all level gains information about performance of the organization and employee tasks within the firm and judge that performance against pre-established criteria as set out in financial statements, budgets, plans, and goals.

Performance measurement system is a general measurement of the results obtain from the performances of employees and organization, and analyze those results. Its motive is to look at the effectiveness and efficiency of the performances. It shows the proper management of the organization. And it helps to compare the actual results of performances with the standard or pre-determined performance. Key performance indicators are the most important part of performance measurement system