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What performance measurement system is most likely to include cost of capital when evaluating performance?
Suggested Answer: D
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41 comments · newest first
EL
Ellsworth
11 months ago
I thought A might include it too, interesting!
VA
Vanda
11 months ago
Wait, are we sure about B? Seems too straightforward.
YA
Yan
11 months ago
A is also a good option, but not the best fit.
JA
Jacki
12 months ago
I agree, B is the right choice!
ST
Stephen
12 months ago
Definitely B, Shareholder Value Added includes cost of capital.
AN
Anabel
1 year ago
I practiced a question similar to this, and I think it was also about how different models account for capital costs. B feels right to me.
TA
Tarra
1 year ago
Competitive Benchmarking seems less likely to include cost of capital, but I can't recall the specifics.
TE
Terina
1 year ago
I'm not entirely sure, but I remember something about Activity Based Costing not really considering capital costs.
LO
Lore
1 year ago
I think the answer might be B, Shareholder Value Added, because it focuses on the returns to shareholders, which includes the cost of capital.
EV
Eva
1 year ago
I'm a little stuck on this one. I know the cost of capital is an important factor in evaluating performance, but I'm not sure which specific framework would include that. I might need to review my notes on the different performance measurement systems to figure this out.
CY
Cyril
1 year ago
Okay, let me think this through. The Business Excellence Model is more focused on overall organizational performance, not just financial metrics. Activity Based Costing is about cost allocation, not necessarily evaluating performance. Competitive Benchmarking compares to competitors, but doesn't necessarily include the cost of capital. I think Shareholder Value Added is the best answer here.
AR
Arminda
1 year ago
Hmm, I'm a bit unsure about this one. I know Shareholder Value Added considers the cost of capital, but I'm not totally confident that's the only one. I might need to think through the other options a bit more.
VA
Val
1 year ago
This one seems pretty straightforward. I'm pretty sure the answer is Shareholder Value Added, since that's the performance measurement system that focuses on the cost of capital.
DA
Dahlia
1 year ago
I'm not entirely sure about this. The question is asking about a service-orientation principle, but I'm not sure which one applies here. I'll have to review my notes and try to eliminate the options that don't seem to fit.
NO
Nohemi
1 year ago
I think this sounds more like a dependent group contingency since the reward relies on each student's individual submissions.
AN
Annabelle
1 year ago
I'm confused. What does 'strictly chronological' really mean here? I can see multiple options that might work...
CA
Carlee
1 year ago
This seems pretty straightforward. I think the answer is D - Extended text, since the question is asking us to set up vendor-specific descriptions for items, and extended text is the best option for that.
CE
Cecil
1 year ago
Leave it to the finance nerds to come up with a performance metric that includes cost of capital. But hey, if that's what the question is asking, I'm going with B).
LE
Leslee
1 year ago
Yeah, B) Shareholder Value Added seems like the most appropriate option for including cost of capital in performance measurement.
MA
Malissa
1 year ago
I'm not sure about the others, but B) Shareholder Value Added seems like the best choice here.
PO
Polly
1 year ago
I think C) Activity Based Costing could also take into account cost of capital in performance evaluation.
RU
Ruthann
1 year ago
I'm not sure, but I'll go with D) Competitive Benchmarking just to mix it up.
SH
Shakira
1 year ago
I think C) Activity Based Costing could also be a good option to include cost of capital in performance measurement.
LE
Lemuel
1 year ago
I agree, B) Shareholder Value Added makes sense when considering cost of capital.
DE
Devorah
1 year ago
I agree, B) Shareholder Value Added makes sense when considering cost of capital.
JO
Josephine
1 year ago
Ha! Competitive Benchmarking? That's like comparing your business to your rivals, not your own cost of capital. Gotta be B) Shareholder Value Added.
MA
Margery
1 year ago
Definitely, it's a more accurate measure of performance.
EL
Elke
1 year ago
Yeah, it takes into account the cost of capital which is important.
AS
Ashton
1 year ago
I agree, Shareholder Value Added is the way to go.
MA
Margurite
2 years ago
I was leaning towards C) Activity Based Costing, but now that I think about it, that's more about tracking costs, not necessarily measuring performance. B) is the way to go.
RO
Rosenda
1 year ago
Yeah, I agree. It takes into account the cost of capital when evaluating performance.
SH
Shanda
1 year ago
I think B) Shareholder Value Added is the best option.
AR
Aretha
2 years ago
I'm not sure, but I think C) Activity Based Costing could also include cost of capital in performance measurement.
TI
Tien
2 years ago
Shareholder Value Added definitely sounds like the one that would factor in the cost of capital. This is a tricky one, but I'm going with B.
LA
Larae
1 year ago
I would go with B as well, it seems like the most logical choice.
VI
Vincenza
1 year ago
I'm not sure, but Shareholder Value Added does seem like the best option.
ME
Merlyn
1 year ago
I think you're right, it makes sense to choose B.
VA
Valene
1 year ago
I agree, Shareholder Value Added is the one that considers cost of capital.
MI
Michael
2 years ago
I agree with Gearldine, because Shareholder Value Added considers cost of capital in evaluating performance.
JA
Janella
2 years ago
Hmm, cost of capital? That's like the interest rate on a loan for a business, right? I think B) Shareholder Value Added is the best answer here.
GE
Gearldine
2 years ago
I think the answer is B) Shareholder Value Added.