Bloomsville Ltd has a board of directors that consist of a Managing Director (MD) and non-executive directors. The MD has a regular monthly meeting with the Chief Operating Officer (COO) and the managers of Bloomsville's three business units. During the meeting, each manager would present an update of their unit's financial performance. The financial information is then reviewed by the MD and the COO to assess the performance of each business unit and to make decisions related to resource allocation. In this case, who is the CODM of Bloomsville?
A) The board of directors.
B) The MD and the COO.
C) The MD, the COO, and the three managers.
D) The MD only.

Question

Quizplus · Accepted Answer

The CODM (Chief Operating Decision Maker) is the person or group of people responsible for making decisions about the allocation of resources to a company's operating segments, and ultimately determining the performance of those segments. In this case, it is the MD and the COO who are responsible for making these decisions after reviewing the financial performance of each business unit, so they are the CODM. The non-executive directors are not directly involved in this process, and the managers of the business units are responsible for presenting the financial information but they do not have the authority to make the allocation decisions, so they are not part of the CODM.

Bloomsville Ltd Has a Board of Directors That Consist of a Managing