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Which of the following key performance indicators would not be an indicator of quality for a railway company.
A The percentage of trains arriving at their destination within 15 mins of the scheduled arrival time
B The number of accidents per 1000 journeys
C A survey of customer satisfaction
D The number of complaints received per 1000 passengers
I would like to know why the ans is C.
Furthermore, I would like to know the denominator of gearing ratio is
(share capital+reserve) or (share capital+reserve+long term liabilities)Thanks!!
C is not a measure – it is a way of collecting data but in itself it is not a measure.
The gearing ratio can be expressed a either debt:equity, or debt: equity + debt
Obviously the result in different answers, but they are both measures of gearing and the exam would make it clear which was required.
(If the ?? was supposed to result in a faster response, then don’t do it because it won’t 🙂
We do not sit at the computer 24 hours a day – we do have work to do 🙂 )Thanks John. I really appreciate you spare your previous time to answer my questions.:)
Hi Sir,
On the mock exam, im gettin the npv to be 41100.
The cash flow for each year is 120-30=90.
Discounted at 10%. However it shows the answer to be 53610.
Can you please advise.
Thanks
I am sorry, but I don’t know which question you are asking about (there are a lot more questions than you see in the test – it selects questions at random from a bank of questions.
Please write more detail about the question, and please start a new thread – this has nothing to do with performance measurement!!
Sir what is meant by Dysfunctional and how is it related to Residual Income because i got a question related to this and was yes or no
the question says
whether Residual Income avoids DysfunctionalityOn its own, the word ‘dysfunctional’ means abnormal or not working.
In the context of this question ‘dysfunctionality’ is when managers of divisions make decisions that are not best for the whole company.
In this sense, residual income helps avoid it because when we use return on investment there can be situations when the managers make decisions which are not good for the company as a whole.Using residual income means that managers will only invest in new projects that give a greater return than the return wanted by the whole company.
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