Bad Debt Collections Is in the Process of Developing a Balanced

question 60

Essay

Bad Debt Collections is in the process of developing a balanced scorecard. Its clients are small local businesses. The company receives a percentage of all bad debts collected.
Determine whether each of the following measures would be relevant for the internal business process perspective in the balanced scorecard, and explain your reasoning.
a)Number of phone calls per completed collection
b)Number of repeat clients
c)Cycle time per collection (average time from receiving account to collecting it)
d)Hours of employee training
e)Number of accounts designated as uncollectible after collection efforts
f)Average cost per collection

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Definitions:

Progressive Tax System

A taxation system where the tax rate increases as the taxable income increases, considered more equitable by distributing the tax burden according to ability to pay.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, reflecting the percentage of tax paid on the last dollar earned.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax payment by total income, often expressed as a percentage.

Lump-Sum Tax

A taxation method that imposes a fixed amount on the taxpayer irrespective of their circumstances.