September 2012
Intermediate to advanced
376 pages
6h 44m
English
Content preview from Key Performance Indicators (KPI)
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6
Revenue growth rate
Strategic perspective
Financial perspective
Key performance question this indicator helps to answer
How well are we growing the business?
Why is this indicator important?
It is the basic fact of business that commercial organisations exist to make money. And although there are a number of factors to consider, the primary driver of ‘making money’ is to grow revenues.
Revenue (sometimes referred to as turnover or sales) is simply the income that a company receives from its normal business activities, usually the sale of goods and/or services.
In accounting terms revenue represents the ‘top line’, to denote how it is reported on an income statement (at the very top). The ‘bottom line’ denotes net profit (what is left ...
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