Study Notes management accounting acca f2

 
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Resource utilisation 
Resource utilization is measured in terms of productivity. The main output of accountancy firm is 
chargeable hours. Productivity will therefore be measured as ratio some of the ratios are given below: 
Business
Input 
Output 
Accountancy firms 
Man hours available Chargeable hours 
Common wealth hotels 
Rooms available 
Rooms occupied 
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Flexibility: It
has three aspects. 
Speed of delivery 
This is vital in some services industries. measure included factors such as 
waiting time in queries 
Ability to respond in 
customer’s 
specification 
This will depend on type of services professional service such as legal 
advice must tailored exactly the customer’s needs 
Coping with demand 
This is measureable in quantity terms. E.g. train company can measure 
exact overcrowding 
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Innovation 
How much cost it will take to develop new service and how effective this process is. In can be 
summarized as follows: 
▪ Amount of spending on research and development 
▪ Proportion of new service to total service provided 
▪ Time between the identification of customer need and for a new service and making it available. 
MONITORING
 
PERFORMANCE
 
MEASUREMENT 
Non-financial performance measure (used to measure the performance of 
Profit Seeking Organizations
and 
Not for Profit Organizations
) 
▪ Benchmarking (financial + non-financial) 
▪ Balanced scorecard (financial + non-financial)
 
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BENCHMARKING 
Benchmarking involves the establishment, through data gathering, of targets and comparators, 
through whose use relative levels of performance (and particularly areas of underperformance) can 
be identified. By the adoption of identified best practices the performance of the organisation should 
be improved.