ACCA Applied Knowledge · Management Accounting · Performance measurement - overview
A delivery company wants a non-financial performance indicator (NFPI) that measures the quality of its service to customers. Which of the following is the most appropriate measure?
The percentage of deliveries made on the promised day is the best choice because it is a non-financial measure that directly shows how reliably the company serves its customers. The other options are all expressed in money terms and do not capture service quality.
- APercentage of deliveries made on the promised dayCorrect
- BFuel cost per kilometre driven
- CReturn on capital employed
- DRevenue per delivery driver
Explanation
Percentage of on-time deliveries is non-financial and directly reflects service quality as experienced by customers. Fuel cost per kilometre and revenue per driver are financial measures, and ROCE is a financial return ratio.
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