(Long-run performance) The company president has asked you, as the new controller, to comment on any deficiencies of the firm. After saying you be¬ lieve that the firm needs long-run performance measurements, the president says that the long run is really just a series of short runs. He says that if you do a good job of evaluating these short-run performances, the long run will take care of itself. He sees that you are unconvinced and agrees to keep an open mind if you can make a good case for measuring and evaluating long- run performance. He suggests that you prepare a report stating your case.

Do so.

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