management accounting

QUESTION 4 (25 MARKS) Below are the financial and non-financial information relating to the practice based on the balanced score card format of an accounting firm, Maya Co. Current year Previous Year RM945,000 RM900.000 RM187,000 RM180,000 21 20 18 days 22 days 396 3% Financial Information Turnover Net profit Average cash balance Average debtor/trade receivables days industry average 30 days) Inflation rate Internal Business Process Error rates in jobs done Average job completion time Customer Knowledge Number of customers Average fee level Market fee Learning and Growth Percentage of revenue from non-core work Industry average of the proportion of revenue from non-core work in accounting practices Employee retention rate 16% 7 weeks 10% 10 weeks 1.220 RM775 14% 1,500 RM600 20% 49 30% 5% 25% 60% 80% The core work is defined as being accountancy and taxation. Instead, non-core work is defined primarily as pension advice and business consultancy. Non-core work is traditionally high margin work. The error rates measure the number of jobs with mistakes made by staff as a proportion of the number of clients serviced. Required: a) Comment the financial performance of the business (briefly consider growth, profitability, liquidity and credit management). (6 marks) (CLO2:PLOS:C4) b) Explain why non-financial information is likely to give a better indication of future success of the business compared to financial information (5 marks) (CLO2:PLOS:C4)