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    PracticeACCAACCA MA — Management Accounting Practice Exam 5Question 30
    Medium2 marksMultiple Choice
    F. Performance measurementSyllabus Area FNon-Financial Performance Indicators

    ACCA · Question 30 · F. Performance measurement

    A commercial airline is reviewing its performance dashboard. Management wants to focus on Non-Financial Performance Indicators (NFPIs) relating to 'Quality of Service'.

    Which TWO of the following metrics are NFPIs that directly measure Quality of Service?

    Answer options:

    A.

    Percentage of flights arriving within 15 minutes of schedule

    B.

    Fuel cost per passenger mile

    C.

    Number of lost baggage claims per 1,000 passengers

    D.

    Aircraft turnaround time at the gate

    How to approach this question

    Look for metrics that are 1) non-financial (no dollar signs) and 2) directly impact the customer's perception of quality.

    Full Answer

    On-time arrivals (A) and lost baggage rates (C) are non-financial metrics that directly reflect the quality of service provided to the customer. Fuel cost (B) is financial. Turnaround time (D) is an operational efficiency metric.

    Common mistakes

    Selecting turnaround time, confusing operational efficiency with customer-facing service quality.
    Question 29All questionsQuestion 31

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