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ACCA Applied Knowledge · Management Accounting · Performance measurement - application

Fitzroy Ltd uses the building block model of Fitzgerald and Moyle. Which of the following is a dimension (result) rather than a standard or reward?

Competitiveness is a dimension in the building block model, specifically a results dimension alongside financial performance. Achievability and fairness are standards characteristics, and motivation is a reward characteristic, so only competitiveness is a dimension.

  1. ACompetitivenessCorrect
  2. BAchievability
  3. CFairness
  4. DMotivation

Explanation

The building block model has dimensions (fairness of results is not one; the dimensions are competitiveness and financial performance for results, and quality, flexibility, resource utilisation and innovation as determinants), standards (ownership, achievability, fairness) and rewards (clarity, motivation, controllability). Competitiveness is a results dimension, whereas the other options are standards or rewards characteristics, and fairness here is a standard.

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