Which statement correctly describes KPI, metric, and dimension and explain how they relate in a dashboard?

• A. KPI is a raw data point; metrics are strategic metrics; dimensions provide context for analysis.
• B. KPI is a strategic metric tied to business goals; metrics are quantifiable measures; dimensions provide context for analysis.
• C. KPI is a data source; metrics are computed values; dimensions are user roles.
• D. KPI is a non-metric value; metrics are non-numeric; dimensions determine color.

Answer: (B)

In dashboards, you want to connect performance to business goals, measure progress with numbers you can trust, and break those numbers down to see what’s driving them. A KPI is a strategic metric that directly ties to a business goal, acting as a high‑level indicator of performance. Metrics are the actual quantifiable measures you collect and calculate, such as total sales, order count, or average order value. Dimensions are the attributes you use to segment or drill into the data for context, like time period, region, or product category.

So, the best description states that a KPI is a strategic metric linked to business goals, metrics are quantifiable measures, and dimensions provide analysis context. For example, you might track a KPI like net revenue growth against a goal; the underlying metrics would include total revenue and growth rate; you’d segment those by dimensions such as quarter and region to understand where growth is coming from and where to focus efforts.

The other options mischaracterize one or more parts: KPI isn’t just a raw data point or a data source; dimensions aren’t user roles or color determinants, and metrics aren’t inherently non-numeric.