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financial outcomes expressed in monetary terms. Non-financial performance instead uses indicators such as customer satisfaction, employee morale, product quality and waiting times."},{"text":"customer satisfaction, quality or morale","correct":false,"explanation":"These are examples of non-financial performance measures, so excluding them reverses the definition. The measures are distinguished by not being directly expressed as profit, cash or costs."},{"text":"market share, loyalty or productivity","correct":false,"explanation":"These indicators can all be used to assess non-financial performance. The defining contrast is with measures directly expressed as profit, cash or costs."},{"text":"absenteeism, complaints or labour turnover","correct":false,"explanation":"These workforce and customer indicators are non-financial measures rather than excluded outcomes. Non-financial performance is not directly expressed as profit, cash or costs."}]},{"id":"9ae355f0-f2bb-4e3e-81d2-18668140dc1a","cardType":"cloze","points":null,"front":"Non-financial measures often act as [ ] because satisfaction or morale may fall before profit.","back":"Non-financial measures often act as early warning signs because satisfaction or morale may fall before profit.","mcqOptions":[{"text":"early warning signs","correct":true,"explanation":"Changes in satisfaction or morale can appear before financial results deteriorate, allowing managers to identify emerging problems and take corrective action sooner."},{"text":"final financial results","correct":false,"explanation":"These measures can signal future financial problems rather than merely report final outcomes. They therefore act as early warning signs before profit is affected."},{"text":"statutory accounting records","correct":false,"explanation":"Statutory records document financial information and are generally backward-looking. Satisfaction and morale instead act as early warning signs of possible future underperformance."},{"text":"short-term cash forecasts","correct":false,"explanation":"Cash forecasts estimate a financial position, whereas satisfaction and morale reveal operational or behavioural changes. Such non-financial measures act as early warning signs."}]},{"id":"867d6b50-dcfe-4fda-b334-b70b75054e9c","cardType":"basic","points":1,"front":"Which measure uses structured questions about customers’ opinions, satisfaction and loyalty?","back":"A customer attitude survey.","mcqOptions":[{"text":"A customer attitude survey.","correct":true,"explanation":"This survey directly gathers structured information about customers’ views, including their satisfaction, opinions and loyalty towards a business, product or service."},{"text":"A customer complaints analysis.","correct":false,"explanation":"Complaints analysis examines problems voluntarily reported by dissatisfied customers rather than asking structured questions. A customer attitude survey systematically measures opinions, satisfaction and loyalty."},{"text":"An employee attitude survey.","correct":false,"explanation":"This gathers workers’ views about employment matters rather than customers’ opinions. A customer attitude survey measures customer satisfaction, perceptions and loyalty."},{"text":"A sales variance analysis.","correct":false,"explanation":"Variance analysis compares actual sales figures with a budget or target and does not collect opinions. A customer attitude survey provides structured evidence about satisfaction and loyalty."}]},{"id":"d2c8b4f7-c81f-4519-999c-cadba952a804","cardType":"cloze","points":null,"front":"A Likert scale asks respondents to choose a rating such as [ ] from strongly disagree to strongly agree.","back":"A Likert scale asks respondents to choose a rating such as 1 to 5 from strongly disagree to strongly agree.","mcqOptions":[{"text":"1 to 5","correct":true,"explanation":"A five-point Likert scale commonly assigns responses from 1 to 5, with the endpoints representing strongly disagree and strongly agree."},{"text":"0 to 10","correct":false,"explanation":"A 0 to 10 scale is commonly associated with Net Promoter Score rather than this Likert example. The specified agreement scale runs from 1 to 5."},{"text":"1 to 100","correct":false,"explanation":"A hundred-point range is unnecessarily detailed for the stated agreement scale and is not the standard example. The ratings run from 1 to 5."},{"text":"-5 to +5","correct":false,"explanation":"Negative and positive numerical endpoints are not used in the stated Likert example. Its ordered response categories are represented by ratings from 1 to 5."}]},{"id":"15f7d2b6-fe68-43c3-b21f-8026cc9317b2","cardType":"cloze","points":null,"front":"Net Promoter Score measures how likely customers are to [ ].","back":"Net Promoter Score measures how likely customers are to recommend the business.","mcqOptions":[{"text":"recommend the business","correct":true,"explanation":"Net Promoter Score is based on customers’ stated likelihood of recommending a business, usually measured using a question scored from 0 to 10."},{"text":"repurchase from the business","correct":false,"explanation":"Repurchase intention can measure customer loyalty, but it is not the defining Net Promoter Score question. NPS asks whether customers would recommend the business."},{"text":"complain about the business","correct":false,"explanation":"Complaint likelihood focuses on dissatisfaction and service failure rather than advocacy. Net Promoter Score measures customers’ likelihood of recommending the business to others."},{"text":"recognise the business","correct":false,"explanation":"Recognition measures brand awareness rather than customer advocacy. Net Promoter Score specifically assesses how likely customers are to recommend the business."}]},{"id":"28f4f2e3-a037-4e77-8246-2e209e1a8753","cardType":"basic","points":2,"front":"In the coffee chain example, what does weak waiting time but strong drink quality suggest?","back":"A service capacity problem, not product quality.","mcqOptions":[{"text":"A service capacity problem, not product quality.","correct":true,"explanation":"Long waits combined with highly rated drinks suggest the product meets expectations but the business lacks sufficient staff, equipment or throughput to serve customers promptly."},{"text":"A product quality problem, not service capacity.","correct":false,"explanation":"Strong drink quality contradicts a product quality diagnosis, while weak waiting-time performance indicates insufficient serving capacity. The evidence therefore points to a service capacity problem."},{"text":"A pricing problem, not service capacity.","correct":false,"explanation":"Waiting-time data does not show whether prices are unsuitable. Strong drinks but slow service instead indicate that service capacity cannot meet customer demand efficiently."},{"text":"A promotional effectiveness problem, not product quality.","correct":false,"explanation":"The evidence concerns operational speed and drink quality, not the success of advertising or promotion. Weak waiting times specifically suggest a service capacity problem."}]},{"id":"91eeba02-98ee-4b56-8d08-aaf2a3051aba","cardType":"basic","points":2,"front":"If only angry customers respond to a survey, what happens to the evidence?","back":"Bias reduces its reliability.","mcqOptions":[{"text":"Bias reduces its reliability.","correct":true,"explanation":"A response dominated by angry customers is unrepresentative of the full customer base. This response bias makes the survey evidence less dependable for decision-making."},{"text":"Bias improves its validity.","correct":false,"explanation":"Systematic overrepresentation of dissatisfied customers does not make evidence more accurate. The resulting bias reduces reliability because the responses do not reflect the wider customer base."},{"text":"Representativeness increases its reliability.","correct":false,"explanation":"Restricting responses to angry customers reduces representativeness rather than increasing it. This creates bias, which lowers the reliability of conclusions drawn from the evidence."},{"text":"A larger sample guarantees its reliability.","correct":false,"explanation":"Sample size cannot correct a systematically unrepresentative group; many angry respondents would still produce biased evidence. Bias therefore reduces reliability regardless of response volume."}]},{"id":"331886d0-4007-4ab5-bc27-3ccc2c4aea6c","cardType":"basic","points":1,"front":"Which measure collects workers’ views about job, management, pay and workload?","back":"An employee attitude survey.","mcqOptions":[{"text":"An employee attitude survey.","correct":true,"explanation":"This survey systematically collects employees’ opinions about workplace issues such as their jobs, managers, pay, workload, motivation and overall satisfaction."},{"text":"A customer attitude survey.","correct":false,"explanation":"This collects customers’ opinions about products, service, satisfaction and loyalty rather than workers’ workplace views. An employee attitude survey covers job, management, pay and workload."},{"text":"An employee performance appraisal.","correct":false,"explanation":"An appraisal evaluates an individual employee’s performance and development rather than surveying workforce opinions. An employee attitude survey gathers views about workplace conditions and management."},{"text":"A labour turnover calculation.","correct":false,"explanation":"Labour turnover measures the proportion of employees leaving and does not directly collect their opinions. An employee attitude survey gathers workers’ views through structured questions."}]},{"id":"875106cf-3cff-43c0-b1b7-dfcc1dd8c882","cardType":"basic","points":2,"front":"Why do anonymous employee surveys give stronger evidence?","back":"Employees may be more honest about managers and workload.","mcqOptions":[{"text":"Employees may be more honest about managers and workload.","correct":true,"explanation":"Anonymity reduces fear that critical comments will be traced back to individuals, encouraging employees to provide candid responses about sensitive workplace issues."},{"text":"Employees may be more positive about managers and workload.","correct":false,"explanation":"Anonymity does not make responses more favourable. It strengthens the evidence because employees can be more honest without fearing consequences from managers."},{"text":"Employees may be more identifiable when discussing managers and workload.","correct":false,"explanation":"This reverses the effect of anonymity, which conceals respondents’ identities. Employees are therefore more likely to answer honestly about managers and workload."},{"text":"Employees may be more influenced by managers when discussing workload.","correct":false,"explanation":"Anonymous surveys reduce managerial influence because individual answers cannot easily be traced. This allows employees to give more honest evidence about workplace conditions."}]},{"id":"3230ab4b-93d2-4c20-abc8-d3079d29e089","cardType":"cloze","points":null,"front":"The rate at which employees leave a business is [ ].","back":"The rate at which employees leave a business is labour turnover.","mcqOptions":[{"text":"labour turnover","correct":true,"explanation":"Labour turnover measures the rate at which employees leave a business, commonly expressed as the number leaving relative to the average workforce."},{"text":"labour productivity","correct":false,"explanation":"Labour productivity measures output per worker, not the rate of employee departures. The measure describing how quickly employees leave is labour turnover."},{"text":"employee retention","correct":false,"explanation":"Employee retention concerns the proportion of staff who remain with a business. The rate at which employees leave is instead called labour turnover."},{"text":"labour absenteeism","correct":false,"explanation":"Labour absenteeism measures employees’ absence from work rather than permanent departures. The relevant measure for employees leaving the business is labour turnover."}]},{"id":"b6f2eb82-d8d6-4540-ae5e-af0ef217c9ad","cardType":"basic","points":1,"front":"What formula calculates market share?","back":"Market share: $\\frac{\\text{sales of the business}}{\\text{total sales in the market}}\\times 100$.","mcqOptions":[{"text":"Market share: $\\frac{\\text{sales of the business}}{\\text{total sales in the market}}\\times 100$.","correct":true,"explanation":"Market share is the business’s sales as a proportion of total market sales. Multiplying the resulting ratio by 100 converts it into a percentage."},{"text":"Market share: $\\frac{\\text{total sales in the market}}{\\text{sales of the business}}\\times 100$.","correct":false,"explanation":"This reverses the required fraction and can produce a result above 100%. Business sales must be divided by total market sales, then multiplied by 100."},{"text":"Market share: $\\frac{\\text{profit of the business}}{\\text{total sales in the market}}\\times 100$.","correct":false,"explanation":"This confuses profit with sales revenue. Market share compares the business’s sales with total market sales and expresses that proportion as a percentage."},{"text":"Market share: $\\frac{\\text{sales of the business}}{\\text{number of competitors}}\\times 100$.","correct":false,"explanation":"Dividing by the number of competitors does not measure the business’s proportion of market sales. The denominator must be total sales across the market."}]},{"id":"f734a6f5-abf9-441e-94be-d589eb61b397","cardType":"basic","points":1,"front":"Greggs has £120m sales in a £2,400m market. What is its market share?","back":"5%.","mcqOptions":[{"text":"5%.","correct":true,"explanation":"Dividing £120m by £2,400m gives 0.05. Multiplying by 100 converts this decimal into a market share of 5%."},{"text":"50%.","correct":false,"explanation":"This results from a place-value error when converting the ratio. £120m divided by £2,400m is 0.05, which becomes 5% after multiplying by 100."},{"text":"0.5%.","correct":false,"explanation":"This is ten times too small because the decimal-to-percentage conversion has been mishandled. The ratio is 0.05, so the market share is 5%."},{"text":"20%.","correct":false,"explanation":"This incorrectly treats the market as only five times larger than Greggs’ sales. It is twenty times larger, making Greggs’ share 1/20, or 5%."}]},{"id":"5877aea8-da0c-43aa-ac3e-4136a00b2a04","cardType":"basic","points":2,"front":"Why might rising market share not mean higher profit?","back":"It may depend on heavy price cuts.","mcqOptions":[{"text":"It may depend on heavy price cuts.","correct":true,"explanation":"Reducing prices can increase sales volume and market share while narrowing profit margins. The business may therefore gain share without earning more total profit."},{"text":"It may depend on higher profit margins.","correct":false,"explanation":"Higher margins would normally support greater profit rather than explain its absence. Market share may rise without profit when heavy price cuts reduce the margin per sale."},{"text":"It may depend on lower unit costs.","correct":false,"explanation":"Lower unit costs generally increase the profit earned on each sale. Heavy price cuts are the relevant explanation because they can raise market share while squeezing margins."},{"text":"It may depend on premium pricing.","correct":false,"explanation":"Premium pricing usually raises the margin per unit and may restrict sales volume. Heavy price cuts can increase market share but prevent profit from rising."}]},{"id":"eb0de0d6-0944-4ff5-8018-f5e8a61db425","cardType":"basic","points":1,"front":"Market share rises from 5% to 7%. What is the percent increase?","back":"40%.","mcqOptions":[{"text":"40%.","correct":true,"explanation":"The increase is 2 percentage points, measured against the original 5%. Calculating $\\frac{2}{5}\\times 100$ gives a 40% increase."},{"text":"2%.","correct":false,"explanation":"This confuses the 2 percentage-point change with the percentage increase. Dividing the change by the original 5% gives $\\frac{2}{5}\\times 100=40\\%$."},{"text":"28.6%.","correct":false,"explanation":"This uses the new 7% value as the denominator instead of the original 5%. Percentage change must be based on the starting value, giving 40%."},{"text":"140%.","correct":false,"explanation":"This calculates the new value as a percentage of the original rather than the increase. The increase itself is 2 points, so $\\frac{2}{5}\\times 100=40\\%$."}]},{"id":"05dc9336-8940-489d-961a-1d89298a1d5c","cardType":"cloze","points":null,"front":"Productivity measures [ ].","back":"Productivity measures output produced per unit of input.","mcqOptions":[{"text":"output produced per unit of input","correct":true,"explanation":"Productivity is an efficiency measure comparing the quantity produced with the resources used. More output from each unit of input indicates higher productivity."},{"text":"input used per unit of output","correct":false,"explanation":"This reverses the productivity relationship and instead indicates the resources required for each unit. Productivity measures output produced per unit of input."},{"text":"revenue generated per unit of input","correct":false,"explanation":"Revenue is a monetary sales measure and can change because of prices. Productivity specifically compares physical or measurable output with the input used."},{"text":"profit earned per unit of input","correct":false,"explanation":"Profit depends on revenue and costs, so it is not the standard measure of productive efficiency. Productivity measures output produced per unit of input."}]},{"id":"d5ad50ee-c885-48bd-bca1-78198e74b991","cardType":"basic","points":1,"front":"What formula calculates labour productivity per employee?","back":"Labour productivity: $\\frac{\\text{output}}{\\text{number of employees}}$.","mcqOptions":[{"text":"Labour productivity: $\\frac{\\text{output}}{\\text{number of employees}}$.","correct":true,"explanation":"Dividing total output by the number of employees gives the average output produced by each worker, allowing labour efficiency to be compared over time."},{"text":"Labour productivity: $\\frac{\\text{number of employees}}{\\text{output}}$.","correct":false,"explanation":"This reverses the required calculation and measures employees needed per unit of output. Labour productivity is output divided by the number of employees."},{"text":"Labour productivity: $\\frac{\\text{output}}{\\text{labour costs}}$.","correct":false,"explanation":"This measures output relative to spending on labour rather than output per employee. The standard employee productivity formula divides output by the number of employees."},{"text":"Labour productivity: $\\frac{\\text{profit}}{\\text{number of employees}}$.","correct":false,"explanation":"Profit per employee is a financial performance ratio affected by prices and costs. Labour productivity measures output, not profit, per employee."}]},{"id":"7391daa5-7504-4521-b44b-dccd7f319dab","cardType":"basic","points":1,"front":"A store has £1,080,000 monthly sales and 18 employees. What is sales revenue per employee?","back":"£60,000 per employee.","mcqOptions":[{"text":"£60,000 per employee.","correct":true,"explanation":"Sales revenue per employee is calculated by dividing £1,080,000 by 18 employees, giving £60,000 for each employee."},{"text":"£6,000 per employee.","correct":false,"explanation":"This drops a zero during the division. Dividing £1,080,000 by 18 correctly gives £60,000 of sales revenue per employee."},{"text":"£54,000 per employee.","correct":false,"explanation":"This results from dividing the sales revenue by 20 rather than 18. Using the actual workforce gives £1,080,000 ÷ 18 = £60,000 per employee."},{"text":"£67,500 per employee.","correct":false,"explanation":"This results from dividing by 16 employees instead of 18. The correct calculation is £1,080,000 ÷ 18, which gives £60,000 per employee."}]},{"id":"e552904f-0fbe-4f44-9ff4-9d20198ff8ac","cardType":"basic","points":2,"front":"Why is productivity not the same as quality?","back":"Output per worker can rise while defects, complaints or returns rise.","mcqOptions":[{"text":"Output per worker can rise while defects, complaints or returns rise.","correct":true,"explanation":"Productivity measures output per worker, whereas quality concerns how well products meet expectations. Producing more per worker does not prevent defects, complaints or returns from increasing."},{"text":"Output per worker can only rise when defects, complaints or returns fall.","correct":false,"explanation":"This assumes productivity improvements automatically improve quality. Output per worker can rise while defects, complaints or returns also rise, so the measures must be assessed separately."},{"text":"Output per worker measures the same defects, complaints and returns as quality.","correct":false,"explanation":"This confuses the two measures. Productivity measures output relative to labour input, while defects, complaints and returns are indicators of quality performance."},{"text":"Output per worker falls whenever defects, complaints or returns rise.","correct":false,"explanation":"This incorrectly assumes an automatic inverse relationship. Productivity may rise at the same time as defects, complaints or returns, because greater output does not guarantee better quality."}]},{"id":"9820af0f-4959-4bdf-8dc6-77ec0dc65004","cardType":"basic","points":2,"front":"How can strong environmental performance affect reputation?","back":"It may improve brand image.","mcqOptions":[{"text":"It may improve brand image.","correct":true,"explanation":"Responsible environmental performance can create favourable stakeholder perceptions, strengthening the business’s brand image and supporting a positive reputation."},{"text":"It may damage brand image.","correct":false,"explanation":"This reverses the usual reputational effect of genuinely strong environmental performance. Responsible behaviour may improve brand image, although misleading environmental claims could instead cause damage."},{"text":"It may improve labour productivity.","correct":false,"explanation":"Labour productivity is an operational measure rather than a direct measure of reputation. Strong environmental performance may improve brand image in the eyes of stakeholders."},{"text":"It may reduce customer awareness.","correct":false,"explanation":"This mistakes reputational improvement for reduced visibility. Strong environmental performance can generate positive attention and may improve the business’s brand image."}]},{"id":"28815e5c-bec7-402c-97de-78bab533dc8e","cardType":"basic","points":2,"front":"Why compare emissions per unit as well as total emissions?","back":"Total emissions may rise because output increased.","mcqOptions":[{"text":"Total emissions may rise because output increased.","correct":true,"explanation":"A business can become cleaner per unit yet produce more units overall, causing total emissions to rise. Comparing both figures reveals efficiency and scale effects."},{"text":"Total emissions may rise because selling prices increased.","correct":false,"explanation":"This confuses monetary values with physical environmental impact. Higher prices do not directly increase emissions; total emissions may rise because the business produced more output."},{"text":"Total emissions may rise because profit margins increased.","correct":false,"explanation":"Profit margin is a financial measure and does not directly determine emissions. Total emissions can rise despite improved emissions per unit when total output increases."},{"text":"Total emissions may rise because market share decreased.","correct":false,"explanation":"A lower market share does not itself explain higher total emissions. The key scale effect is that producing more output can raise total emissions despite better per-unit performance."}]},{"id":"7b727cce-beb5-4dcc-ad94-8fd6a43c18b6","cardType":"cloze","points":null,"front":"Greenwashing means environmental claims that [ ] real performance.","back":"Greenwashing means environmental claims that exaggerate or misrepresent real performance.","mcqOptions":[{"text":"exaggerate or misrepresent","correct":true,"explanation":"Greenwashing occurs when environmental claims overstate achievements or present performance misleadingly, making an organisation appear more environmentally responsible than it really is."},{"text":"accurately reflect","correct":false,"explanation":"Claims that accurately reflect real environmental performance are transparent reporting, not greenwashing. Greenwashing involves claims that exaggerate or misrepresent the organisation’s actual performance."},{"text":"independently verify","correct":false,"explanation":"Independent verification can increase the credibility of environmental reporting and reduce greenwashing risk. Greenwashing instead describes claims that exaggerate or misrepresent real performance."},{"text":"conservatively understate","correct":false,"explanation":"Understating achievements is not the usual deception involved in greenwashing. Greenwashing makes performance appear better by using claims that exaggerate or misrepresent reality."}]},{"id":"ae6a2346-60b1-4a6b-b0e4-ae44e96ad034","cardType":"basic","points":2,"front":"Why use triangulation when evaluating performance?","back":"It gives a stronger judgement using multiple evidence sources.","mcqOptions":[{"text":"It gives a stronger judgement using multiple evidence sources.","correct":true,"explanation":"Triangulation compares evidence from several measures or sources. Agreement between them supports a stronger, more reliable judgement than relying on one indicator alone."},{"text":"It gives a certain judgement using one evidence source.","correct":false,"explanation":"This confuses triangulation with reliance on a single indicator, which cannot produce certainty. Triangulation strengthens a judgement by comparing multiple evidence sources."},{"text":"It gives a financial judgement using only accounting ratios.","correct":false,"explanation":"Triangulation is not restricted to financial ratios. It combines multiple financial and non-financial evidence sources to produce a stronger overall judgement."},{"text":"It gives a subjective judgement without comparing evidence sources.","correct":false,"explanation":"This describes unsupported judgement rather than triangulation. Triangulation deliberately compares multiple evidence sources, making the resulting judgement stronger and less dependent on one measure."}]},{"id":"5229b171-cd02-46a6-b5d0-521c47ca7785","cardType":"basic","points":2,"front":"Why use non-financial measures alongside financial data?","back":"To check whether improvements lead to sustainable profit and cash flow.","mcqOptions":[{"text":"To check whether improvements lead to sustainable profit and cash flow.","correct":true,"explanation":"Non-financial indicators can reveal whether operational, customer or environmental improvements support lasting financial success, rather than merely producing a temporary rise in reported profit."},{"text":"To check whether improvements lead to guaranteed profit and cash flow.","correct":false,"explanation":"No performance measure can guarantee financial outcomes because external conditions and business decisions still matter. The measures help assess whether improvements support sustainable profit and cash flow."},{"text":"To focus only on short-term profit and cash flow.","correct":false,"explanation":"This ignores the purpose of combining different measures. Non-financial data helps assess long-term drivers and whether improvements can produce sustainable profit and cash flow."},{"text":"To replace financial data with customer satisfaction and productivity.","correct":false,"explanation":"Non-financial measures should complement rather than replace financial data. Together they show whether customer and operational improvements translate into sustainable profit and cash flow."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Component 1"},"heading":"Analysing non-financial performance","title":"Analysing non-financial performance Flashcards","topbar":{"backHref":"/a-level/business/eduqas/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"6916fc27-9957-5429-a249-f4a3a85be1a6","walled":"$L39"}],"$L3a","$L3b"]