Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › march/june 2019 -Problem 1 Capital provider
- This topic has 1 reply, 2 voices, and was last updated 4 months ago by Ken Garrett.
- AuthorPosts
- August 21, 2024 at 4:56 pm #710127
The following question relates to question number 1 on march/june 2019 APM exam
https://cn.accaglobal.com/uploads/talk/20210204165926_1029.pdf.
“The chief executive officer (CEO) has identified three
factors which are critical success factors (CSFs) to achieving this objective. These are:
1. Keep capital providers satisfied;
2. Build a world-class software development team; and
3. Ensure that quality of the imaging devices meets market standards”I want to ask for part a.”Recommend the key performance indicators and evaluate them as required by the chief executive officer (CEO)”, is EVA a suitable performance indicators for the first CSF: Keep capital providers satisfied?
The sample answer suggest using return on capital employed (ROCE) which measures the returns to all capital providers as a group. But I think that EVA is more long-term forward looking KPI than ROCE in this scenario.August 21, 2024 at 6:22 pm #710134I agree with you that EVA is an important KPI for providers of capital.
See this article and its conclusion:
- AuthorPosts
- You must be logged in to reply to this topic.