Choosing financial and nonfinancial performance measures (LO4). Assume that you are a franchisee of a fast-food chain, "Pita Palace," that serves made-to-order pitas. The menu, prices, and decor are dictated by the national office; further, you are required to purchase all of your supplies through a specified distributor. Your primary responsibility is to ensure adequate staffing and to exercise quality control. Naturally, as the franchisee, you also are keenly interested in your store's profitability.

Required:

a.As the franchisee, list two financial measures and two nonfinancial measures that you would monitor on a short-term (e.g., weekly) basis.

b. Why do think it is important to use both financial and nonfinancial measures?