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Question 69 - BAPv5 discussion

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A company has decided to change one of its financial Key Performance indicators (KPIs). It has traditionally measured profit through its gross profit margin, however, it now wishes to measure It through it Return on Capital Employed (ROCE).

The following activities are on the consensus Business Activity Model (BAM)

a) Take control action

b) Monitor performance targets

c) Define performance targets.

d) Define target customers

Which of these would the event 'amend KPI' affect?

A.
c only.
Answers
A.
c only.
B.
a only.
Answers
B.
a only.
C.
b, c and d.
Answers
C.
b, c and d.
D.
a. b and d.
Answers
D.
a. b and d.
Suggested answer: A

Explanation:

The event 'amend KPI' would affect the activity 'define performance targets', as the company would need to change its current performance target of gross profit margin to ROCE. The other activities would not be directly affected by this event, as they are either related to monitoring or defining other aspects of the business. Therefore, option A is the correct answer.

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asked 16/09/2024
Jeffrey Sammaritano
33 questions
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