Running head : PERFORMANCE MEASUREMENT
Performance Measurement
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1

PERFORMANCE MEASUREMENT 2
In the scorecard, the financial perspective coincides with other performance measures like return on capital, earning per share along with return on interest which are utilized in the evaluation of the company’s strategic approach. The aforementioned perspectives examine the potential of the implemented strategies to realize the company objectives of increasing revenue and experiencing constant growth. Therefore, the management should evaluate the costs involved on the investment returns (Chandra, 2011).
Market price of shares of a certain company can be used as one of financial ratio. This can be estimated by use of their value or percentage. Generally they can be categorized according to financial aspect of a certain business. Under this we get liquidity ratio which tries to measure the availability of finance used to pay debt. Secondly, we have activity ratio that we use to measure the speed of a company converts of cash assets to cash assets (Needles & Crosson,
2010).
Non-financial measures are the estimates of performance in an individual or a whole firm. It will be necessary for the top management to continue making their employees have the feeling that they possess a vital responsibility within the realization of the company’s success.
Consequently, there is a probability of maintaining a low employee turnover rate given that the sense of family is maintained within the company (Chandra, 2011). This has always worked with firms as employees are the ones who make or break an organization, and therefore if satisfied, they work better for the benefit of the firm.
In respect to the learning along with growth perspective, Costco is set to get involved in opening new stores within local and foreign markets. The opening up of new stores will enable
Costco to continue realizing growth (Chandra, 2011). Consequently, the growth will in turn lead to increased revenues which is the objective of every business organization.

PERFORMANCE MEASUREMENT 3
References
Chandra, P. (2011). Financial management: Theory and practice . New Delhi: Tata McGraw-Hill
Education.
Hansen, D. R., Mowen, M. M., & Guan, L. (2009). Cost management: Accounting and control .
Mason, Ohio: South-Western.
Needles, B. E., Powers, M., & Crosson, S. V. (2010). Financial and managerial accounting .
Mason, OH: South-Western Cengage Learning.