Performance measurement is the attempt in business to be able to quantify what management has been doing during a certain period. The principle behind it is that of giving management authority to make certain decisions in their areas of responsibility and later on make then making them accountable for their decisions. In the end, what a superior wants is a performance report from a manager concerning his division. The report would contain what he has been doing and whether targets set have been attained or not. There are three main financial performance measurement techniques; return on investment, residual income and economic value added.
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