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Non-financial performance measurement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Non-financial performance measurement

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • November 25, 2021 at 7:56 am #641567
    John1998m
    Participant
    • Topics: 73
    • Replies: 40
    • ☆☆

    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?

    November 25, 2021 at 9:00 am #641576
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    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.

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