In your opinion, how can using organizational costs, revenues, and profitability measures be ...

Environmental, political, and/or economic events may skew these numbers (Lucky or unlucky events)

It is difficult to attribute cost, revenue, or profit contributions of the various functional units or business units of the organization. This is because departments/business units are interdependent and share costs, equipment, labor, and revenues.

Using these performance metrics may cause departments to buy cheap materials, unskilled labor, or inadequate machines, which will result in poor quality for the customer.

Since many of the costs associated with business are fixed/overhead costs, managers are left to minimize the variable costs such as labor. This may result in minor changes at best or lower quality and worst.