Wk 5 Non Fin Per

Question 1

What are non financial performance measures?

Answer 1

Non value adding tasks, or things that can not be easily quantified but still contribute to org goals.

Question 2

Give some examples of non value adding tasks and measures that go with them.

Answer 2

Accountability - # process errors in a period
Transparency - # internal audits passed
Efficiency - were production targets met on time?

Adapting to change (tech / regulatory/ ir changes) - policy response to legislative change less than 60 days

Question 3

How do non fin performance measures contribute to org goals?

Answer 3

Accountability
Promotes improvements
Provides info for decision making
Ensure company goals are achieved

Fin and non fin indicators complement each other and should be used in conjunction

Question 4

.When would you use financial indicators?

Answer 4

To measure:
Budgets
Targets
As lag indicators
When quantitative indicators are needed

Question 5

When would you use non financial indicators?

Answer 5

When a balanced view of operations are needed

When lead indicators are required.

Question 6

What are financial measures

Answer 6

provide performance info in terms of dollars or ratios and compare budgeted against actual.

Question 7

What is a management control system

Answer 7

Incorporating financial and non financial indicators to monitor and control the dynamic between org activities and strategy.