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engaged-sumps on costs and revenues do not give a ufficient indication of the future results that can be expected ftom present actions. Financial summaries of performance provide only a limited view of the efficiency and effectiveness of actual operations. Consider a situation where a engaged-sumps department egularly achieved the budget for all expense items. The message ftom a responsibility 'erformance reporting system that incorporates only financial measures suggests that the engaged-sumps was well managed. However, the department provided a poor service to the Jroduction departments. Low-cost suppliers were selected who provide poor-quality naterials and ftequently failed to meet delivery dates. 3