Question 1

SECTION B - MULTI-TASK QUESTION 3 (PERFORMANCE MEASUREMENT)

Scenario: CareFirst NGO provides mobile healthcare clinics in rural areas. The board is reviewing performance for the year using a mix of financial and non-financial metrics.

Data for the year:
- Total funding received: $2,000,000
- Total operating costs: $1,800,000
- Number of clinics operated: 50
- Total patients treated: 100,000
- Target patients treated: 120,000
- Number of patient complaints: 500
- Total capital employed (vehicles/equipment): $5,000,000

Answer the following 5 sub-questions (2 marks each):

1. Calculate the Return on Capital Employed (ROCE) based on the operating surplus.
2. Calculate the cost per patient treated.
3. What is the percentage shortfall in effectiveness regarding the target number of patients treated?
4. Calculate the complaint rate per 1,000 patients treated.
5. If CareFirst negotiated a 10% discount on medical supplies this year, which of the '3 Es' (Economy, Efficiency, Effectiveness) does this directly improve?

Accepted Answer

1. Surplus = Funding - Costs. ROCE = Surplus / Capital. 
2. Total Costs / Total Patients. 
3. (Target - Actual) / Target * 100. 
4. (Complaints / Total Patients) * 1000. 
5. Definition of Economy (cost of inputs).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Calculating the shortfall percentage based on actual patients (20,000 / 100,000 = 20%) instead of the target.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 2

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