Transcription of Answers - ACCA Global
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AnswersProfessional Level Options Module, Paper P5 Advanced Performance ManagementSeptember/December 2015 Answers1 ReportTo: Board of Iron Chicken (IC)From: A. AccountantDate: December 2015 Subject: Performance management issues at ICIntroductionThis report evaluates the accuracy and assumptions used in the calculation of EVA . It then suggests new KPIs for the currentCSFs at IC. Finally it considers the impact of three quality improvement projects on these CSFs and a proposed new informationsystem.(i)Economic value added (EVA )There are a number of errors in the existing calculation of (EVA ). These are described below and then the corrected EVA is expenses are correctly added back to profit as such costs are treated as unacceptable accounting adjustments ona cash-based view.
This project will affect the CSFs relating to improved productivity and waste by reducing defective products, provided that staff time is not adversely affected by aiming for perfection in production.
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Functional Obsolescence and Economic, Obsolescence, Grain Elevator, FUNCTIONAL OBSOLESCENCE Functional obsolescence, Consideration of Functional and Economic, 4. RESERVE FUND FOR, Economic, Valuation Of Hotels and Motels For, Valuation of Hotels and Motels for Assessment, Valuation of hotels and motels, 3 PROPERTY ANALYSIS, Property analysis