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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.
Benefits of using balanced scorecard (BSC) - BSC encourages a long-term view of improving performance through time. - BSC considers both non-financial as well as financial m
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