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A Key Performance Indicator (KPI) is a measurable value or metric used by an organisation to evaluate the performance and effectiveness of a particular activity, department, employee, product, or business process. KPIs help management compare actual performance with planned objectives and identify areas that require improvement. In buying and merchandising, KPIs are especially important because buyers and merchandisers have to balance customer demand, product availability, sales, profitability, inventory, and supplier performance. For example, sales turnover is a KPI that measures the value of goods sold during a particular period. Gross margin measures the difference between ___ ____ ___ ___ _____ _________ ______.
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