Worldatwork Exam GR1 Topic 3 Question 76 Discussion

Actual exam question for Worldatwork's GR1 exam

Question #: 76
Topic #: 3

[All GR1 Questions]

What performance measurement system is most likely to include cost of capital when evaluating performance?

ABusiness Excellence Model

BShareholder Value Added

CActivity Based Costing

DCompetitive Benchmarking

Show Suggested Answer

Suggested Answer: D

by Yoko at Jun 02, 2024, 03:12 AM

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Margurite

12 days 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.

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Aretha

13 days ago

I'm not sure, but I think C) Activity Based Costing could also include cost of capital in performance measurement.

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Tien

14 days 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.

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Michael

16 days ago

I agree with Gearldine, because Shareholder Value Added considers cost of capital in evaluating performance.

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Janella

16 days 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.

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Gearldine

21 days ago

I think the answer is B) Shareholder Value Added.

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