# State the global performance measurements and operational performance measurements and briefly define each. How do these differ from traditional accounting measurements?

State the global performance measurements and operational performance measurements and briefly define each. How do these differ from traditional accounting measurements?
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Step 1: Definition
Global performance measurement:
The net profit is measured in dollars. The return of investment is usually a percentage of the investment being made. The cash flow is the amount of cash existing to carry out daily activities. In terms of accounting activities, reductions such as depreciation are added back. There is no really any money spent as depreciation in the situation.
Operational measurement:
The throughput is the actual rate of sales created by the system. Inventory is all money devoted to things that are to be retailed. This includes the raw materials, equipment and other but at the cost prices after reducing the operating expense. Operating expense is the money used up in converting the inventory into throughput. This expense includes all the associated costs.
Step 2
Traditional accounting approaches operate with items such as standard costs, allocation of burdens, gross profits, profit centers, and much more which are based on the standards and allocations. The areas in which there are differences is, in traditional accounting inventory is carried similar to the cost of goods sold. But, in operational measurement, inventory is carried similar to the cost of raw materials.