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:
Income statement shows net income of $100,000.
Listing of next week’s orders of $50,000.
Trend showing that average hits on the redesigned Web site are increasing at 5% per week.
Price sheet from vendor reflecting that cost per pound of sugar for next month is $2.
Contract signed last month with large retail store that guarantees a minimum shelf space for Grandpa’s Overloaded Chocolate Cookies for the next year.