- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › march/june 2019 -Problem 1 Capital provider
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.
I agree with you that EVA is an important KPI for providers of capital.
See this article and its conclusion:
