In the activity-based framework, performance is concerned with more than just the financial perspective.
The process perspective adds time, quality, and efficiency as critical dimensions of performance.
Decreasing the time a process takes to deliver its output to customers is viewed as a vital objective.
Thus, non-financial, process oriented measures such as cycle time and on-time deliveries become important.
Performance is evaluated by gauging whether these measures are improving over time.
The same is true for measures relating to quality and efficiency.
Improving a process should translate into better financial results.
Hence, measures of cost reductions achieved, trends in cost, and cost per unit of output are all useful indicators of whether a process has improved.
Progress toward achieving optimal standards and interim standards needs to be measured
The objective is to provide low - cost, high - quality products, delivered on a timely basis.