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performance measurement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › performance measurement

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
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  • December 30, 2018 at 8:09 pm #499515
    Avatarreem1589
    Participant
    • Topics: 61
    • Replies: 17
    • ☆☆

    Could you please explain why in the following question growth of sales is a non-financial objective. the answer is B.

    24.7 Which of the following are non-financial objectives?
    (i) Growth of sales
    (ii) Diversification
    (iii) Contented workforce
    (iv) Increase earnings per share

    A (ii) and (iii)
    B (i), (ii) and (iii)
    C (ii), (iii) and (iv)
    D (i), (iii) and (iv)

    December 31, 2018 at 8:36 am #499539
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    Growth in sales revenue would be a financial objective but growth in sales means selling more units which doesn’t necessarily mean more revenue (they could be sold at a lower price).

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