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Revenue as a performance measurement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Revenue as a performance measurement

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by seanog91.
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  • June 4, 2016 at 10:45 am #319289
    seanog91
    Member
    • Topics: 83
    • Replies: 54
    • ☆☆

    Does revenue as a performance measure act as an appropriate measurement to maximise share holders wealth or is revenue growth more appropriate?

    June 4, 2016 at 11:24 am #319299
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    Shareholders’ wealth depends on profit not revenue. Therefore, revenue or revenue growth are not particularly good measures.

    Look for profit or profit growth.

    June 4, 2016 at 11:35 am #319302
    seanog91
    Member
    • Topics: 83
    • Replies: 54
    • ☆☆

    Thanks Ken!

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