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an AIS provides so much information to use in decision making, both financial and nonfinancial, what...

an AIS provides so much information to use in decision making, both financial and nonfinancial, what tools are available for measuring how a company is doing?

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Answer #1

Tools for measuring how a company is doing:

1. Budgets: These are one of the best known tools for measuring performance of a company. Comparisons are generally donw monthly and with year to year financial reports and variances are identified and analyzed.

2. KPIs: Key Performance Indicators are standard defined numbers or ratios that can be compared to company performance. Now these KPIs depends on the business drivers. For ex. In an auto repair business, these KPIs might be average revenue per job and jobs completed per service technician. A change in either of those can lead to a dramatic increase or decrease in revenue.

3. Comparative Ratios: These ratios are used by companies to compare their performances with their competitors or industry or their past performances. Industry performance is available from many publish sources.

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