Section A

LegalEagles, a law firm, is assessing its service quality. Which of the following is a non-financial performance indicator that would best measure the quality of service provided to clients?

Answer options:

The total billable hours recorded by junior partners.

The percentage of legal cases won or settled favorably.

The average cost per client consultation.

The firm's gross profit margin.

How to approach this question

Look for an option that is both non-financial (doesn't involve money) and directly relates to the concept of 'quality' or 'success' from the client's perspective.

Full Answer

B.The percentage of legal cases won or settled favorably.✓ Correct

Non-financial performance indicators (NFPIs) measure performance in terms other than money. The percentage of cases won is a non-financial metric that directly reflects the quality and effectiveness of the law firm's core service.

Common mistakes

Selecting billable hours, which measures input/activity rather than the quality of the output.

Question 32 All questions Question 34

Practice the full ACCA MA — Management Accounting Practice Exam 3

38 questions · hints · full answers · grading

More questions from this exam

Q01Section A GlobalHealth NGO is evaluating the effectiveness of its recent vaccination drive in ru...Easy Q02Section A Quantum AI, a tech startup, classifies its costs to better understand cost behavior. S...Medium Q03Section A MetroWater, a public utility company, uses sampling to test water quality. An automate...Easy Q04Section A AgriYield Corp is analyzing the relationship between the amount of specialized fertili...Medium Q05Section A TransGlobal Logistics uses time series analysis to forecast shipping volumes. The unde...Medium

View all 38 questions →