The main difficulty of selecting performance targets for a firm is that performance goals tend to be long term,but effective monitoring must be short term.

Question

Quizplus · Accepted Answer

Performance targets are usually set for a longer period of time, such as years, but in order to monitor progress towards those targets, shorter-term measures must be used, such as weekly or monthly reports. This creates the difficulty of balancing long-term goals with short-term monitoring.

The Main Difficulty of Selecting Performance Targets for a Firm