Which of the following describes a Key Performance Indicator (KPI)?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Get ready for the NetSuite Administrator Certification Exam. Study with multiple choice questions and detailed explanations. Prepare for success with our comprehensive practice test!

A Key Performance Indicator (KPI) is specifically designed to measure performance against strategic goals and objectives within an organization. This makes option B the most accurate description, as a KPI is indeed a metric that helps identify trends over time. By analyzing KPIs, businesses can recognize patterns and make informed decisions based on performance data, ultimately driving improvements and strategic direction.

KPIs are often used to evaluate success in meeting targets and benchmarks. They are not random metrics, nor are they fixed values determined without context; rather, they are carefully chosen based on their ability to reflect performance relative to objectives. Additionally, KPIs are relevant and current, contrasting with the notion of being obsolete, as they are not merely historical metrics but rather focus on current performance and trends moving forward.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy