Exam 14: Strategic Performance Measurement Systems

One of the limitations with the traditional accounting system is that it is common to measure current performance against the previous year's performance, which is not an indicator that the business's performance is good enough.

Strategy maps are useful for explaining the cause-and-effect relationships that link business processes and resources.

Performance measures, which include cost, product quality and manufacture cycle time, are related to:

What items or perspectives are measured in the balanced scorecard?

Assuming you must choose one measure only, which of the following non-financial performance indicators would most likely be chosen to measure satisfaction with delivery?

Which of the following do traditional measurement systems include? i. Profitability ii. Return on investment iii. Cost variance analysis iv. Budget variance analysis

Which of the following statements is/are true?

Which of the following statements is/are false? i. Non-financial measures are only applicable when profit is not a principle goal of the firm. ii. It is often difficult to take any action because of non-financial measures. iii. At the operational level, it is often easier to relate to non-financial measures.

Which of the following is the most appropriate lag indicator in relation to 'percentage of products passed final quality inspection'?

Assuming you must choose one measure only, which of the following non-financial performance indicators would most likely be chosen to measure quality?

The management accountant at Kaster Furniture Makers decides to include the following measures on their balanced scorecard (BSC): customer satisfaction, rework costs, on-time delivery, average shopfloor personnel qualification and sales growth in local markets. These measures belong to which BSC perspectives?

Which of the following statements about the DuPont chart is incorrect?

Which of the following are used by most successful organisations when evaluating performance?

The ultimate performance measure is expressed in financial terms; however, it is often difficult to relate non-financial measures to financial outcomes. Which of the following may be reasons for apparent success in improving non-financial measures not translating into financial improvement?

Normalisation is used to remove the effects of factors outside the control of the organisation in:

Measures that monitor the progress towards the organisation's goals are called:

A criticism of non- financial measures it that over time a number of non-financial measures are replaced but the previous measure continues to exist.

Which of the following non-financial indicators measures product availability?

An increasingly popular approach that integrates financial and customer performance measures with measures in the areas of internal operations and innovation is known as:

The perspectives that are generally considered with the balanced scorecard are the same regardless of whether the business is a profit or not-for-profit concern.