Explaining why companies use performance evaluation systems

Financial performance is measured in many ways.

$1.$ Explain the difference between lag and lead indicators.

$2.$ The following is a list of financial measures. Indicate whether each is a lag or 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 Web site are increasing at $5\%$ power 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.