Sir what is the difference between value for money and value based management essentially?
From what i know VFM.. is to do with the 3 es concept for measuring performance in not for profit organisations.. and VBM..? Eva... NPV..
but what else?
Ask the Tutor ACCA APM
Difference between VFM and VBM?
10y ago#1VBM: the value of a company is determined, in theory, by the PV of its future cash flows.
EVA can be relevant to this as it tries to look at cash and does take into account the cost of
capital. It's not quite the same, of course (eg R&D added back) and for your questions EVA looks at historical results and shows whether valus has been added.
ok sir... thank you :)
Do we need to know about VBM in detail? Not sure if it was in a lecture of yours.... i was wondering if you mentioned it in a lecture of yours. Always like hearing you explain stuff in them lectures :D
10y ago#3I can't remember if I mentioned it or not in lectures - if I did it wouldn't have been a lot, I don't think
However, if you look at these ACCA questions and the model answers you will get useful information:
December 2010 Q3 (a)(c)
June 2014 Q1 (iv)
Thank you sir. I have looked at both questions now and there is indeed good information about VBM, especially in the Cantor question. This was the attempt i got 49 in. Ugh. lol
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