(AIS) Accounting Information System Assignment

Added on - 29 Apr 2020

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Running head: ACCOUNTING INFORMATION SYSTEMAccounting Information SystemUniversity NameStudent NameAuthors’ Note
2ACCOUNTING INFORMATION SYSTEMDescription of different aspects of measurement within key performance indicatorsKey performance indicators essentially refer to one of the most important ways of utilizingmeasurement as well as analysis of performance. Dillard & Yuthas (2013) asserts that thereare different categorization of performance indicators namely quantitative indicators,qualitative indicators, leading indicators, lagging indicators, input indicators, processindicators, output indicators, practical indicators, directional indicators, actionable indicatorsand financial indicators.The primary aspects of measurement of KPI are that KPIs need to be well defined andquantifiable and have the need to be communicated properly through the entire corporation(Adenike & Michael, 2016). In addition to this, KPIs also need to be crucial for the purposeof achievement of firm’s goals and need to be applied to the line of the business of thecorporation.Essentially there are both financial as well as non-financial indicators.As rightly put forward by Dillard & Yuthas (2013), financial KPIs necessarily revolve aroundparticularly revenue as well as profit margins. Basically, the basic metric founded on profit isknown as net profit. Net profit also reflects the total amount of firm’s revenue that are treatedas profit for a specific period after taking into account all the expends of the firm, togetherwith the taxes along with the taxes as well as interest for the similar time period. As net profitcan be computed in amount, it needs to be converted into revenue percentage and can be usedas a measure or dimension of carrying out comparative analysis. Again, cost is yet anotherimportant financial metric that helps in enumeration of the cost effectiveness and discover themost appropriate manners to lessen and handle the costs of the corporation. Hassan et al.,(2017) mentions that days sales (outstanding) of a business concern takes into account theaccounts receivable of the firm and divides the same by the total number of sales of the firm
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