7.3.1 Non-Financial Data

Question 1

As well as using financial information to assess the performance of a business, a business can also use non-financial information to assess its strengths and weaknesses.

Answer 1

Non-Financial Info can be collected from the operations function, marketing function, HR function.

Question 2

Operations Function

Answer 2

Labour productivity can be used to provide information on a business’ strengths and weaknesses.

Capacity and capacity utilisation can be used to provide information on a business’ strengths and weaknesses.

Quality measures can be used to provide information on a business’ strengths and weaknesses.

Question 3

Marketing Function

Answer 3

Sales forecasts can be used to provide information on a business’ strengths and weaknesses.

Brand loyalty and satisfaction data can be used to provide information on a business’ strengths and weaknesses.

Question 4

Comparisons From Data

Answer 4

Data from different departments, teams or divisions may be compared to indicate performance.

Data from different years may be compared to indicate performance.

Data from the business may be compared to competitor data, if available, to indicate performance.

Data from the business may be compared to the industry to indicate performance.

Question 5

Alternative Sources Of Info

Answer 5

Absenteeism Rates, Labour Costs, Labour Turnover and Employee Costs can be used to provide information on a business strengths and weaknesses.

Question 6

Non-Financial Info

Answer 6

Using non-financial information to assess performance may not provide a full overview of business performance.

Non-financial information may need to be combined with financial information in order to get an overview of the business’ performance.

Using financial and non-financial information to assess business performance may not take into account additional factors such as the business’ impact on the environment, or its employee’s wellbeing.