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Problems of profit based measures
- Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed.
- So many different measures of profitability and profit terminology.
- Practical and political problems when addressing 'uncontrollable' expenditure.
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The functions of a performance measurement system; - Publicise direction for 'everyone to follow' e.g. partners, managers, directors, team members and other stakeholders. -
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The strategy
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