Study Notes management accounting acca f2

Performances measurement through cost per unit
In contract and process costing environment cost per unit is a useful performance measure.
Total cost 
 
Cost per unit =
Number of units produced in the period 
Performance measure for Services 
Characteristics of services: 
There are four particular characteristics of services, which affect both 
performance and its measurement:
 
 
Simultaneity
– production and consumption of the service at the same time 
 
Perishability
– the inability to store the service 
 
Heterogeneity also called variability
– provision of a non-standardized service 
 
Intangibility
– there is no physical product. 
 
Performance measurement in service sectors: 
There are 6 key dimensions to performance in the 
service sector
 
▪ Competitive Performance 
▪ Financial Performance 
▪ Quality 
▪ Resource utilization 
▪ Flexibility 
▪ Innovation 
Together these areas influence the competitiveness of the business and ultimately its profitability.
➢
Competitive performance
▪ 
Sales Growth 
▪ 
Market Share 
▪ 
Obtain New Business 
 
➢
Financial performance
▪ Budgeted Expenditure Limit 
▪ Standard Performance Measurement (Standard cost per unit; Productivity etc.) 
➢
Quality 
Quality cannot be measured physically so it is assessed by different means, this will be more 
understandable by following table: 
Service quality factor Measure 
Mechanism 
•
Assess 
Walking distance 
Customer survey and internal 
operational data 
•
Cleanness 
Cleanness of environment and 
equipment 
Customer survey and management 
inspection 
•
Comfort 
Crowdedness of airport 
Customer survey and management 
inspection 

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F2 Management Accounting
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•
Friendliness 
Staff attitude and helpfulness 
Customer survey and management 
inspection