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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Usefulness of measure ROCE
What is the usefulness of the measure ROCE?
I have this question in my exam today but I was blank as to what to write… Please tell me what can we write about the usefulness of ROCE?
It is an accounts based measure, and although in theory NPV type measures are better, in practice shareholders look at the accounts and want the ROCE to increase (and, of course, the whole object is to keep shareholders ‘happy’).
I do explain this in my free lectures 🙂