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Hello sir I am new here and looking for some answers.
I had a problem with the question accountancy teaching co (December 2010) but only with the computation of non-financial performance indicators.
Could you please say how to answer this question and do we expect to have these kind of questions in the exam nowadays (because it is such an old question!)
Questions such as this certainly can be asked and are asked nowadays.
However I am puzzled as to which computations you are having a problem with, because the non-financial performance indicators are given in the question – your job is to comment on them and refer to them when discussing the financial performance indicators.
You cannot learn an approach to this kind of question because every question is different. You should have several questions of this type in your Revision Kit and the best way of preparing is to practice them and to learn from the answers.
We are given the NFP data for two years (2009 and 2010).
We need to calculate % change in performance indicators to assess whether the performance of the business has improved or not.
% of student transferring = (20 – 8) / 8 = 150%
Since the students transferred to AT Co has increased by 150% indicates that students are taking more interest to move to our teaching company.
Number of late enrolments = (106 – 297) = / 297 = 64.3%
Since the number of late enrolments has decreased by 64.3% so the errors made by staff indicate improved efficiency.
% of students passing exam = (66 – 48) / 48 = 37.5%
This indicates that teaching standards are getting better because more of the students are passing exams for the first time.
Labour turnover = (32 – 10) / 32 = 68.75%
The labour turnover shows that less labour is employed in the business which is good because it will result in lower wages and salary expense
# of student complaints = (84 – 315) / 315 = 73.33%
The student complaints have reduced over time by a great proportion which shows that AT Co is doing good.
Average # of employees = (1081 – 1080) / 1080 = 1%
There is a slight change avg number of employees which is reduced by less than 1% which may or may not have any effect on the business.
Is that how we answer these questions in the exam? I mean the calculation and comment is enough?
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