Assessing Activity Performance Activity performance measurement is designed to assess how well an activity was formed and the results achieved. Measures of activity performance are both financial and non financial and center on three major dimensions: (1) efficiency, (2) quality, and (3) time. Efficiency is concerned with the relationship of activity outputs to activity inputs. For example, activity efficiency is improved by producing the same activity output with fewer inputs. Costs trending downward is evidence that activity efficiency i improving. Quality is concerned with doing the activity right the first time i performed. If the activity output is defective, then the activity may need to be repeated. unnecessary cost and reduction in The time required to perform an activity is also critical. Longer times usually mean more resource consumption and less ability to respond to customer demands. Time measures of performance tend to be non- financial, whereas efficiency and quality measures are both financial and non financial.