EJET is an airline company that operates domestically and internationally using a fleet of 20 aircraft. Passengers book flights using the internet or by telephone and pay for their flights at the time of booking using a debit or credit card. EJET currently measures its performance using financial ratios. The new Managing Director has suggested that non-financial measures are equally important as financial measures and provide further insights into company performance. Indicate the statements shown below that are valid:
A、Non-financial measures are less likely to be manipulated than traditional financial ratios.
B、Non-financial measures may discourage dysfunctional behaviour by airline staff.
C、Financial ratios do not need to be linked with non-financial measures.
D、Non-financial measures are a better indicator of future prospects than financial ratios which focus on the short term.
E、Internal efficiency can be measured by the number of flight take-offs that are on time.
F、Non-financial performance measures do not need to be developed and refined over time as they always remain relevant.
G、Customer satisfaction can be measured in terms of the number of failed attempts to make a booking due to website crashes.
A、Non-financial measures are less likely to be manipulated than traditional financial ratios.
B、Non-financial measures may discourage dysfunctional behaviour by airline staff.
C、Financial ratios do not need to be linked with non-financial measures.
D、Non-financial measures are a better indicator of future prospects than financial ratios which focus on the short term.
E、Internal efficiency can be measured by the number of flight take-offs that are on time.
F、Non-financial performance measures do not need to be developed and refined over time as they always remain relevant.
G、Customer satisfaction can be measured in terms of the number of failed attempts to make a booking due to website crashes.
【参考答案及解析】
The correct answers are: A Non-financial measures are less likely to be manipulated than traditional financial ratios B Non-financial measures may discourage dysfunctional behavior by airline staff. D Non-financial measures are a better indicator of future prospects than financial ratios which focus on the short term. E Internal efficiency can be measured by the number of flight take-offs that are on time. G Customer satisfaction can be measured in terms of the number of failed attempts to make a booking due to website crashes. Financial ratios do not need to be linked with non-financial measures is incorrect. The linkage via performance models such as the Balanced Scorecard will help to improve performance as financial ratios do not give the full picture. As businesses develop, non-financial performance measures do need to be developed and refined over time so they can remain relevant.
The correct answers are: A Non-financial measures are less likely to be manipulated than traditional financial ratios B Non-financial measures may discourage dysfunctional behavior by airline staff. D Non-financial measures are a better indicator of future prospects than financial ratios which focus on the short term. E Internal efficiency can be measured by the number of flight take-offs that are on time. G Customer satisfaction can be measured in terms of the number of failed attempts to make a booking due to website crashes. Financial ratios do not need to be linked with non-financial measures is incorrect. The linkage via performance models such as the Balanced Scorecard will help to improve performance as financial ratios do not give the full picture. As businesses develop, non-financial performance measures do need to be developed and refined over time so they can remain relevant.