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:

Process Cost Savings

Process cost savings refer to reducing expenses involved in the operations of a business or production process, often achieved through efficiency improvements or negotiation.

Investment Recovery

The process of recouping the value of assets no longer needed by an organization, either through sale, recycling, or reuse.

Green Purchasing

The procurement of products and services that cause minimal environmental impact, supporting sustainability goals.

Corporate Social Responsibility (CSR)

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.