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.