Page 304 - BA2 Integrated Workbook STUDENT 2018
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Fundamentals of Management Accounting
CHAPTER 9 – PERFORMANCE MEASUREMENT
9.1 A and D
In principle, the more training days an employee receives the more
knowledgeable and skilful they become.
A target for the percentage of total sales revenue earned from new products
focuses on innovation. The higher the target percentage, the more innovative
the organisation might be with new product development.
Percentage of revenue from new customers would be a measure for the
customer perspective.
Net profit margin would be a measure for the financial perspective.
Number of items rejected during production would be a measure for internal
business processes perspective.
9.2 The cost per passenger mile = $8,600 ÷ 2,390 = $3.60.
Day Number of passengers Miles travelled Passenger miles
Monday 20 25 500
Tuesday 15 14 210
Wednesday 8 10 80
Thursday 5 6 30
Friday 26 16 416
Saturday 34 22 748
Sunday 29 14 406
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Total 2,390
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The cost per passenger mile = $8,600 ÷ 2,390 = $3.60.
9.3 C and D
Division A ($000) Division B ($000)
ROCE: (1,200 ÷ 7,000) = 17.1% (400 ÷ 2,300) = 17.4%
Gross profit margin: (3,500 ÷ 5,000) = 70% (1,200 ÷ 2,400) = 50%
Operating profit margin: (1,200 ÷ 5,000) = 24% (400 ÷ 2,400) = 16.7%
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