Non-Financial Data
Business: AQA A Level (2023 Specification), topic 7.3.1
Non-Financial Information
As well as using financial information to assess the performance of a business, a business can also use non-financial information to assess its strengths and weaknesses.
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Where data comes from
- Non-financial information can be collected from the operations function.
- Non-financial information can be collected from the marketing function.
- Non-financial information can be collected from the human resources function.
Non-financial information from the operations function
- Labour productivity can be used to provide information on a business’ strengths and weaknesses.
- Capacity and capacity utilisation can be used to provide information on a business’ strengths and weaknesses.
- Quality measures can be used to provide information on a business’ strengths and weaknesses.
Non-financial information from the marketing function
- Sales forecasts can be used to provide information on a business’ strengths and weaknesses.
- Brand loyalty and satisfaction data can be used to provide information on a business’ strengths and weaknesses.
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Comparisons from data
- Data from different departments, teams or divisions may be compared to indicate performance.
- Data from different years may be compared to indicate performance.
- Data from the business may be compared to competitor data, if available, to indicate performance.
- Data from the business may be compared to the industry to indicate performance.
Alternative sources of information
- Absenteeism rates can be used to provide information on a business’ strengths and weaknesses.
- Labour costs per unit of production can be used to provide information on a business’ strengths and weaknesses.
- Labour turnover can be used to provide information on a business’ strengths and weaknesses.
- Employee costs can be used to provide information on a business’ strengths and weaknesses.
Non-Financial Information
- Using non-financial information to assess performance may not provide a full overview of business performance.
- Non-financial information may need to be combined with financial information in order to get an overview of the business’ performance.
- Using financial and non-financial information to assess business performance may not take into account additional factors such as the business’ impact on the environment, or its employee’s wellbeing.
Test yourself on Non-Financial Data
Which of the following departments can NOT provide non-financial information?
What information can be provided from the operations department on the business' strengths and weaknesses?
Which department would provide information about brand loyalty?
What can data be compared against?