The senior management of Tyler Company has proposed the following three performance measures for the company:1. Net income as a percent of stockholders’ equity2. Revenue growth3. Employee satisfactionManagement believes these three measures combine both financial and nonfinancial measures and are thus superior to using just financial measures. **Discussion Point:**What advice would you give Tyler Company for improving its performance measurement system?

Strategic Performance Measurement System: Strategic performance measurement system is an approach…

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Business

Accounting

What advice would you give Tyler Company for improving its performance measurement system?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The senior management of Tyler Company has proposed the following three performance measures for the company:

1. Net income as a percent of stockholders’ equity
2. Revenue growth
3. Employee satisfaction

Management believes these three measures combine both financial and nonfinancial measures and are thus superior to using just financial measures.

**Discussion Point:**
What advice would you give Tyler Company for improving its performance measurement system?

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