Advanced Research on Performance Measurement in Service Businesses, reported in Management Accounting, found that ‘performance measurement often focuses on easily quantifiable aspects such as cost and productivity whilst neglecting other dimen¬ sions which are important to competitive success’.

You are required:

(a) to explain what ‘other dimensions’ you think are important measures of performance;

(8 marks)

(b) to describe what changes would be required to traditional information systems to deal with these ‘other dimensions’. (9 marks)

(Total 17 marks) CIMA Stage 3 Management Accounting