ACC1000 exam prep

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  1. Identify non financial performance measures from 3 non financial perspectives
    • Customer (client) perspective
    • Number of clients
    • Client retention (number of years, repeat business, etc.)
    • Client satisfaction (survey)

    • Business process perspective
    • Meeting commitment re completion of work
    • Quality of work (need for corrections, etc.)
    • Actual time spent compared to estimates or standard times

    • Innovation/improvement perspective
    • Staff retention
    • Staff training investment
    • Papers published in accounting journals/awards.
    • higher education achievements
  2. What are the strengths and weaknesses of the payback analysis
    • Strengths: 
    • Payback analysis provides an indication of a projects risk and liquidity
    • Easy to calculate and understand.

    • Weaknesses:
    • Ignores the time value of money,
    • Ignores cash flows occurring after the payback period.
  3. What are the limitations  of conducting time series analysis?
    • No cross sectional analysis
    • No other benchmarks such industry averages
    • Ratios based on accounting numbers. Prepared in accordance with accounting standards? Have
    • they been audited?
    • No non-financial data
    • Static measures
    • No cash budgets
    • Current ratio only focuses on size, not speed
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ACC1000 exam prep
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