ACCA Strategic Professional · Advanced Performance Management · Sustainability
Zentra Plc, a manufacturer, wants to report on its performance in three dimensions: economic, environmental and social, so that shareholders and other stakeholders can see the full effect of its activities. Which reporting approach is Zentra adopting?
Zentra is using triple bottom line reporting, because it reports economic, environmental and social performance together. The balanced scorecard has different perspectives, and throughput or responsibility accounting are internal cost and control methods rather than sustainability reporting frameworks.
- ATriple bottom line reportingCorrect
- BBalanced scorecard reporting
- CThroughput accounting reporting
- DResponsibility accounting reporting
Explanation
The triple bottom line (people, planet, profit) measures performance across social, environmental and economic dimensions. The balanced scorecard uses four perspectives, with a customer and internal process focus, and is not framed around sustainability. Throughput accounting and responsibility accounting are cost and control tools.
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