Question

Financial performance is measured in many ways.

Requirements
1. Explain the difference between lag and lead indicators.
2. The following is a list of financial measures. Indicate whether each is a lag or a lead indicator:
a. Income statement shows net income of $ 100,000
b. Listing of next week’s orders of $ 50,000
c. Trend showing that average hits on the redesigned website are increasing at 5% per week
d. Price sheet from vendor reflecting that cost per pound of sugar for the next month is $ 2
e. Contract signed last month with large retail store that guarantees a minimum shelf space for Grandpa’s Overloaded Chocolate Cookies for the next year



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  • CreatedJanuary 16, 2015
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