ACCA Applied Knowledge · Management Accounting · Performance measurement - application
A delivery company records the following for a month: 2,400 deliveries were made, of which 2,160 arrived on or before the promised time. Customers placed 2,500 orders. What are the on-time delivery percentage and the order fulfilment percentage respectively?
On-time delivery is 2,160 divided by 2,400 deliveries, giving 90.0%. Order fulfilment is 2,400 deliveries divided by 2,500 orders, giving 96.0%. The first uses deliveries made as its base; the second uses orders placed.
- A90.0% and 96.0%Correct
- B86.4% and 96.0%
- C90.0% and 104.2%
- D96.0% and 90.0%
Explanation
On-time = 2,160/2,400 = 90.0%. Fulfilment = 2,400/2,500 = 96.0%. Using 2,500 as the base for on-time gives 86.4%, which is the wrong denominator.
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