costperperformance
Cost per performance (CPP) is a financial metric used to evaluate the efficiency of a product, service, or investment. It is calculated by dividing the total cost of an item by its performance or output. The formula for CPP is:
CPP = Total Cost / Performance
This metric is particularly useful in comparing different options that may have varying costs and performance
A lower CPP indicates better performance per unit of cost, suggesting a better value for money. Conversely,
In business, CPP can be used to make informed decisions about resource allocation, pricing strategies, and investment