The finance director of AKP Ltd has observed that outstanding debtors have significantly increased in the past two months. An examination of possible causes has determined that part of the problem may be the new computerised invoicing system, which, due to input errors, has sent a number of accounts to wrong addresses. The director has asked the credit department to determine how many accounts have been sent to wrong addresses. This indicator would be classified as:

Question

Quizplus · Accepted Answer

The indicator of how many accounts have been sent to wrong addresses is operational because it measures a specific aspect of the company's operations (the invoicing system) and it is a driver because it can be used to identify and address the root cause of the increase in outstanding debtors. It is not classified as strategic because it does not relate to the company's broader goals and it is not classified as an outcome because it measures a specific process rather than a broader result.

The Finance Director of AKP Ltd Has Observed That Outstanding