Section A

OceanHarvest operates a commercial fishery. Management wants to introduce non-financial performance indicators (NFPIs) to monitor environmental sustainability.

Which of the following are appropriate NFPIs for this objective? (Select ALL that apply)

Answer options:

Tons of non-target species (bycatch) caught per fishing trip.

Gross profit margin per ton of fish sold.

Percentage of the fleet equipped with sustainable, turtle-safe nets.

Return on capital employed for the purchase of new vessels.

How to approach this question

Identify the metrics that do NOT use currency/money and directly relate to the environmental goal.

Full Answer

Non-Financial Performance Indicators (NFPIs) measure performance using metrics other than currency. For environmental sustainability in a fishery, metrics like bycatch volume (A) and equipment standards (C) are highly relevant NFPIs. Options B and D are traditional financial metrics.

Common mistakes

Selecting financial metrics that happen to be related to the fishing industry.

Question 32 All questions Question 34

Practice the full ACCA MA — Management Accounting Practice Exam 6

38 questions · hints · full answers · grading

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