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Question 32b
During the early part of 20X4 TIP employed a newly qualified management accountant. He quickly became concerned about the potential performance of TIP and to investigate his concerns, he started to gather data to measure some non-financial measures of success. The data he has gathered is shown below:
| Table 1 | ||
|---|---|---|
| 20X4 | 20X5 | |
| Hours lost due to breakdown of rides (see note 1) | 9,000 hours | 32,000 hours |
| Average waiting time per ride | 20 minutes | 30 minutes |
Required:
(b) Assess the QUALITY of the service which TIP provides to its customers using Table 1 and any other relevant data and indicate the RISKS it is likely to face if it continues with its current policies. (6 marks)