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Can you make me clear what does this learning objective is about? I have some trouble understanding it.
It’s from syllabus area E and learning outcome 4.
Compare divisional performance
and recognise the problems of
Does it mean we have to compare the divisional performance using one of the two models specified in the pm syllablus? Or we have to compare divisional performance using ROI , RI and other metrics enlisted by examiner.
I have no idea about the second outcome. Recognise the problems of comparison?. Does it mean the problems with metrics used for comparison or the problem with divisions itself?
hi John ,how does delay in payment of suppliers decrease capital employed of a division?
aakarsh715: Exam questions specify which method(s) to use to compare.
As far as the problems are concerned, it means the problems that each of the methods have (not the problems with the divisions).
Ashiraf: Please open a new thread to ask new questions.
Delaying payment to suppliers will increase payables, which decreases the net assets, and therefore decreases the capital employed.