| Abstract: | Just about the only feature of the business environment which has remained constant in recent years is its rate of change. In particular, changes in the internal and external values of the world's leading currencies, in taxation laws, and in accounting practice, have combined to confuse the tasks of objective setting and performance measurement. This article sets out to clear a path through that confusion. It considers the various factors to be taken into account when establishing a financial objective for use as a criterion in resource allocation decisions. It shows how, in the U.K., a growth rate objective is an essential companion to a return on investment objective. |
