non financial indicators

Question 1

what are non-financial indicators?

Answer 1

information to assist analysis and decision-making in relation to inventory, acc rec and acc pay. it is information that cannot be found in financial statements

Question 2

what are some limitations of financial information?

Answer 2

• most indicators rely on averages
• if firms use different accounting methods to compile a report it may be hard to compare businesses.

Question 3

what does non financial indicators assess? for both customer and employees relationship with firm.

Answer 3

• satisfaction, (surverys)
• number of complaints
• level of staff absenteeism
• number of sales return

Question 4

how the firm use nonfinancial indicators to assess inventory and economy/other factors?

Answer 4

• number of sales return
• number of complaints
• number of purchase returns
• unemployment rate
• number of competitors
• interest/inflation rates