CPI Certification Practice Test 2025 - Free CPI Practice Questions and Exam Preparation Guide

Indicators that reflect past performance are classified as lagging indicators. These are metrics that provide insights into what has already occurred, making them valuable for assessing the outcomes of past decisions and actions. Lagging indicators typically follow events and are commonly used to measure the results of strategies that have already been implemented. For instance, financial reports, sales figures, and employment statistics are examples of lagging indicators, as they illustrate the results of past activities and help organizations evaluate their effectiveness.

In contrast, leading indicators serve as predictors of future performance, giving insights into potential changes before they occur. Prediction indicators, while a vague term, generally suggest forecasts based on current trends rather than historical data. Evaluation indicators, while somewhat related, are more aligned with assessing performance but do not specifically denote the backward-looking nature characteristic of lagging indicators. Hence, recognizing the clear distinction between these types clarifies why the answer is lagging indicators.