APICS Certified Supply Chain Professional (CSCP) — Question 120

A firm is undertaking a revision of its financial metrics to make them more comprehensive and has decided to use metrics such as return on investment (ROI), return on assets (ROA), and economic value added (EVA). This is an example of utilizing which of the following types of metrics?

Answer options

• A. Activity based
• B. Stakeholder focused
• C. Financial sustainability
• D. Value chain

Correct answer: C

Explanation

The correct answer is C, as financial sustainability metrics focus on the long-term financial health of an organization, which is reflected in ROI, ROA, and EVA. Options A and D relate to operational and supply chain efficiencies, while B pertains to metrics centered on stakeholder interests, which do not directly address financial performance.