Question

Which of the following is true of backward-looking metrics?

A) They include company metrics such as late deliveries and late payments.
B) They provide insights on future performance.
C) They include marketing metrics such as customer awareness and customer satisfaction.
D) They tell a company where it stands with respect to current performance.
E) They are applied at regular intervals during an operating period.

Answer 1

Backward-looking metrics reflect on a company's past performance, such as late deliveries and late payments, and do not predict future performance.

Step-by-step explanation:

Backward-looking metrics are indicators that reflect on a company's past performance rather than predicting future outcomes. The correct statement about backward-looking metrics is: A) They include company metrics such as late deliveries and late payments. These metrics help a company understand its past performance in various areas, but they do not provide insights on future performance. Examples of backward-looking metrics, also known as lagging indicators, could be financial statements from previous quarters, customer complaints, or the number of late deliveries in the past. They are contrasted with leading indicators, which are predictive in nature, and coincident indicators, which offer a snapshot of current conditions.