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  After reading this chapter, you should be able to:

  LO 1   Explain why companies use nonfinancial performance measures.

  LO 2   Understand the reasons why performance measures differ across levels of the organization.

  LO 3   Understand when the use of a single measure or multiple measures of performance is appropriate.

  LO 4   Understand how the balanced scorecard helps organizations recognize and deal with their conflicting responsibilities.

  LO 5   Understand how to apply the methods involved in an effective performance measurement system.

  LO 6   Identify examples of nonfinancial performance measures and discuss the potential for improved performance resulting from improved activity management.

  LO 7   Explain why employee involvement is important in an effective performance measurement system.