Tutorial: How to report on KPIs #1: Product Mix. By David Carter

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Managers cannot run their business solely on the basis of a monthly Profit and Loss report and Balance Sheet. Therefore accountants need to provide reports on the key performance indicators (KPIs) of the business as well as the monthly financial statements.

Different KPIs are appropriate to different businesses. But much of the time they will derive from data that is not held in the accounting ledgers at all. In this series David Carter looks at some common KPIs. He identifies what data you will need in order to calculate them, and where you can find it.

For further coverage on performance indicators, see AccountingWEB's guide to KPIs

KPI #1: Sales by Product (product mix)

1. Who needs this KPI?

Many businesses deal in products which generate different levels of gross prof...

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