Question 1

Elements that derive from the competitive strategy and are essential to the success of the organisation are called:

Accepted Answer

A)  key performance indicators 
B)  critical success factors 
C)  key performance factors 
D)  critical success drivers 
A)  key performance indicators 
B)  critical success factors 
C)  key performance factors 
D)  critical success drivers

Question 2

Performance measures,including shareholder value,residual value and cash flow are related to:

Accepted Answer

A)  financial perspective 
B)  customer perspective 
C)  internal business processes 
D)  learning and growth 
A)  financial perspective 
B)  customer perspective 
C)  internal business processes 
D)  learning and growth

Question 3

Which is the easiest form of benchmarking to establish?

Accepted Answer

A)  Competitive benchmarking 
B)  Internal benchmarking 
C)  Industry benchmarking 
D)  Process benchmarking 
A)  Competitive benchmarking 
B)  Internal benchmarking 
C)  Industry benchmarking 
D)  Process benchmarking

Question 4

One of the signs that a firm's performance measurement system is inadequate is when performance measures show improvement but this is not translated into profit.In which of the following circumstances may this occur?
i.Resources freed up through improvements may not have been utilised to improve profitability
ii.Factors being measured are not critical success factors.
iii.Too many similar measures are used.iv.There is a time lag between improved performance and improved profitability.

Accepted Answer

A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,ii and iv 
D)  i,iii and iv 
A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,ii and iv 
D)  i,iii and iv

Question 5

What items or perspectives are measured in the balanced scorecard?

Accepted Answer

A)  A firm can choose to measure whatever items it considers important 
B)  Financial and customer 
C)  Internal business 
D)  Learning and growth 
A)  A firm can choose to measure whatever items it considers important 
B)  Financial and customer 
C)  Internal business 
D)  Learning and growth

Question 6

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

Accepted Answer

A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,iii and iv 
D)  All of the given answers 
A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,iii and iv 
D)  All of the given answers

Question 7

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

Accepted Answer

A)  Number of overdue deliveries 
B)  Percentage stock outs 
C)  Downtime/total time 
D)  Percentage warranty claims 
A)  Number of overdue deliveries 
B)  Percentage stock outs 
C)  Downtime/total time 
D)  Percentage warranty claims

Question 8

Which of the following statements are true in respect to continuous improvement?
i.Some companies focus their efforts to improve performance on specific problem areas
ii.Companies should set an increasingly difficult targets to motivate employees to improve their performance continuously.
iii.It is inappropriate to change performance measures on short-term cycles,such as monthly.

Accepted Answer

A)  i and iii 
B)  ii and iii 
C)  i and ii 
D)  All of the given answers 
A)  i and iii 
B)  ii and iii 
C)  i and ii 
D)  All of the given answers

Question 9

On which of the following is the Kaplan and Norton framework for developing a balanced scorecard is based?
i.Financial perspective
ii.Customer perspective
iii.Learning and growth
iv.Internal processes

Accepted Answer

A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,iii and iv 
D)  All of the given answers 
A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,iii and iv 
D)  All of the given answers

Question 10

Which of the following statements is/are false?

Accepted Answer

A)  Performance measures identify problem areas. 
B)  Performance measures are essential to determine a firm's profitability. 
C)  Performance measures form the basis for rewards. 
D)  All of the given answers 
A)  Performance measures identify problem areas. 
B)  Performance measures are essential to determine a firm's profitability. 
C)  Performance measures form the basis for rewards. 
D)  All of the given answers

Question 11

Quality and customer satisfaction are non-financial measures that can be drivers of future financial performance.

Accepted Answer

A) True 
 B)False

Question 12

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?

Accepted Answer

A)  Number of repeat orders 
B)  Percentage of absenteeism 
C)  Number of complaints about service 
D)  Units produced 
A)  Number of repeat orders 
B)  Percentage of absenteeism 
C)  Number of complaints about service 
D)  Units produced

Question 13

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

Accepted Answer

A)  Units produced per month 
B)  Number of repeat orders 
C)  Percentage of absenteeism 
D)  Percentage of idle time 
A)  Units produced per month 
B)  Number of repeat orders 
C)  Percentage of absenteeism 
D)  Percentage of idle time

Question 14

Which of the following comments best describes the appropriate application of benchmarking to a medium-sized Australian company with a range of products and services specifically designed for local conditions and demands?

Accepted Answer

A)  In the absence of a valid basis for comparison,benchmarking is unlikely to be informative in this case. 
B)  Benchmarking should be based on world best practice for the nearest equivalent organisation. 
C)  Efforts should be made to compare particular activities and processes with similar processes elsewhere,allowing for differences in the business environment. 
D)  The use of benchmarking may inhibit originality in meeting the special features and unique needs of the firm's market. 
A)  In the absence of a valid basis for comparison,benchmarking is unlikely to be informative in this case. 
B)  Benchmarking should be based on world best practice for the nearest equivalent organisation. 
C)  Efforts should be made to compare particular activities and processes with similar processes elsewhere,allowing for differences in the business environment. 
D)  The use of benchmarking may inhibit originality in meeting the special features and unique needs of the firm's market.

Question 15

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

Accepted Answer

A)  the integrated performance measurement tool 
B)  the balanced scorecard 
C)  integrated efficiency 
D)  benchmarking 
A)  the integrated performance measurement tool 
B)  the balanced scorecard 
C)  integrated efficiency 
D)  benchmarking

Question 16

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

Accepted Answer

A)  It shows that return-on-investment can be decomposed into profit and costs. 
B)  It identifies lead indicators of revenue. 
C)  It identified lead indicators of costs. 
D)  Its underlying assumption is that return-on-investment is the 'ultimate' goal. 
A)  It shows that return-on-investment can be decomposed into profit and costs. 
B)  It identifies lead indicators of revenue. 
C)  It identified lead indicators of costs. 
D)  Its underlying assumption is that return-on-investment is the 'ultimate' goal.

Question 17

Which of the following statements is/are true?
i.A Du Pont chart includes lag indicators for revenue measures
ii.A Du Pont chart includes lead indicators for costs.
iii.A Du Pont chart fails to show any relationship between cost and invested capital.iv.A Du Pont chart clearly shows the relationship between lead indicators and invested capital.

Accepted Answer

A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,ii and iv 
D)  All of the given answers 
A)  i,ii and iii 
B)  ii,iii and iv 
C)  i,ii and iv 
D)  All of the given answers

Question 18

Benchmarking that involves comparison with firms with similar interests and technologies is termed:

Accepted Answer

A)  competitive benchmarking 
B)  industry benchmarking 
C)  process benchmarking 
D)  external benchmarking 
A)  competitive benchmarking 
B)  industry benchmarking 
C)  process benchmarking 
D)  external benchmarking

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Some of the measures that can be used for measuring competitiveness include market ratios,capital structure and liquidity.

Accepted Answer

A) True 
 B)False

Elements that derive from the competitive strategy and are essential to the success of the organisation are called:

Performance measures,including shareholder value,residual value and cash flow are related to:

Which is the easiest form of benchmarking to establish?

What items or perspectives are measured in the balanced scorecard?

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

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

On which of the following is the Kaplan and Norton framework for developing a balanced scorecard is based? i.Financial perspective ii.Customer perspective iii.Learning and growth iv.Internal processes

Which of the following statements is/are false?

Quality and customer satisfaction are non-financial measures that can be drivers of future financial performance.

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?

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

Which of the following comments best describes the appropriate application of benchmarking to a medium-sized Australian company with a range of products and services specifically designed for local conditions and demands?

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

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

Benchmarking that involves comparison with firms with similar interests and technologies is termed:

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

Some of the measures that can be used for measuring competitiveness include market ratios,capital structure and liquidity.

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 14: Strategic Performance Measurement Systems

Elements that derive from the competitive strategy and are essential to the success of the organisation are called:

Performance measures,including shareholder value,residual value and cash flow are related to:

Which is the easiest form of benchmarking to establish?

What items or perspectives are measured in the balanced scorecard?

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

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

On which of the following is the Kaplan and Norton framework for developing a balanced scorecard is based? i.Financial perspective ii.Customer perspective iii.Learning and growth iv.Internal processes

Which of the following statements is/are false?

Quality and customer satisfaction are non-financial measures that can be drivers of future financial performance.

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?

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

Which of the following comments best describes the appropriate application of benchmarking to a medium-sized Australian company with a range of products and services specifically designed for local conditions and demands?

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

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

Benchmarking that involves comparison with firms with similar interests and technologies is termed:

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

Some of the measures that can be used for measuring competitiveness include market ratios,capital structure and liquidity.

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters