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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Non-financial performance measurement
Is it true that non-financial performance measurement and divisional performance measurement are assessed in the same way we do with financial performance measurement?
In financial performance measurement, we evaluate the performance of the company using ratio analysis and increase or decrease in revenues/costs/profit from one year to another to see whether the performance is good or bad as compared to last year.
So in the same way we have to evaluate the non-financial performance measurement and divisional performance measurement using ratio analysis and increase or decrease in revenues/costs/profit from one year to another?
No. Non-financial measures are not looking at factors such as the revenues/costs/profits precisely because they are financial measures!!
You do need to watch my free lectures on non-financial performance measures and on divisional performance measures.