Question 1

Which of the following is the most appropriate lead indicator in relation to 'customer satisfaction rating'?

Accepted Answer

A)  Market share 
B)  Number of customer complaints 
C)  Percentage of on-time delivery 
D)  Sales growth 
A)  Market share 
B)  Number of customer complaints 
C)  Percentage of on-time delivery 
D)  Sales growth

Question 2

The internal business process perspective of a balanced scorecard may contain which of the following set of performance measures?

Accepted Answer

A)  Sales force efficiency,percentage of warranty claims,number of employees completed internal training 
B)  Defect costs,employee satisfaction rating,number of customer complaints 
C)  Sales force efficiency,scrap costs,percentage of machine downtime 
D)  Number of incorrect deliveries to customers,production cycle time,profit margin 
A)  Sales force efficiency,percentage of warranty claims,number of employees completed internal training 
B)  Defect costs,employee satisfaction rating,number of customer complaints 
C)  Sales force efficiency,scrap costs,percentage of machine downtime 
D)  Number of incorrect deliveries to customers,production cycle time,profit margin

Question 3

One way of setting up a system of continuous improvement is to utilise benchmarking for comparing products functions and activities.

Accepted Answer

A) True 
 B)False

Question 4

Measures that monitor the factors that drive outcomes are called:

Accepted Answer

A)  lead indicators 
B)  lag indicators 
C)  benchmark indicators 
D)  cause and effect indicators 
A)  lead indicators 
B)  lag indicators 
C)  benchmark indicators 
D)  cause and effect indicators

Question 5

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

Accepted Answer

A)  Percentage of machine downtime 
B)  Number of customer complaints 
C)  Percentage of on-time delivery 
D)  Number of employees completed quality training 
A)  Percentage of machine downtime 
B)  Number of customer complaints 
C)  Percentage of on-time delivery 
D)  Number of employees completed quality training

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

A firm using the balanced scorecard has included among its strategies 'to improve bottom-line profit we need to improve working conditions'.Which of the following statements best describes the evaluation of the firm's success in implementing the strategy?

Accepted Answer

A)  It is impossible to determine whether the strategy has been successful. 
B)  The only way to measure success is to survey employees. 
C)  A number of performance evaluation measures will need to be put in place,but even with favourable results on those measures,the firm cannot conclude that the profit resulted from the improvement in working conditions. 
D)  If managers can observe employees' motivation they will have a good idea of the success or otherwise of the strategy. 
A)  It is impossible to determine whether the strategy has been successful. 
B)  The only way to measure success is to survey employees. 
C)  A number of performance evaluation measures will need to be put in place,but even with favourable results on those measures,the firm cannot conclude that the profit resulted from the improvement in working conditions. 
D)  If managers can observe employees' motivation they will have a good idea of the success or otherwise of the strategy.

Question 8

The steps to be taken in the benchmarking process are:
i.establishing performance goals
ii.identifying functions or activities to be benchmarked
iii.implementing plans
iv.data collection and analysis
v.selecting benchmark partners
What is the correct sequence of these steps?

Accepted Answer

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

Question 9

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?

Accepted Answer

A)  Financial perspective
Sales growth in the local markets
Internal business process perspective
On-time delivery,customer satisfaction
Customer perspective
Learning and growth perspective
Rework costs,average shopfloor personnel qualification 
B)  Financial perspective
Sales growth in the local markets
Internal business process perspective
Rework costs
Customer perspective
On-time delivery,customer satisfaction
Learning and growth perspective
Average shopfloor personnel qualification 
C)  Financial perspective
Rework costs
Internal business process perspective
On-time delivery
Customer perspective
Sales growth in the local markets,customer satisfaction
Learning and growth perspective
Average shopfloor personnel qualification 
D)  Financial perspective
Sales growth in the local markets;Rework costs
Internal business process perspective
On time delivery;Average shopfloor personnel qualification
Customer perspective
Customer satisfaction
Learning and growth perspective 
A)  Financial perspective
Sales growth in the local markets
Internal business process perspective
On-time delivery,customer satisfaction
Customer perspective
Learning and growth perspective
Rework costs,average shopfloor personnel qualification 
B)  Financial perspective
Sales growth in the local markets
Internal business process perspective
Rework costs
Customer perspective
On-time delivery,customer satisfaction
Learning and growth perspective
Average shopfloor personnel qualification 
C)  Financial perspective
Rework costs
Internal business process perspective
On-time delivery
Customer perspective
Sales growth in the local markets,customer satisfaction
Learning and growth perspective
Average shopfloor personnel qualification 
D)  Financial perspective
Sales growth in the local markets;Rework costs
Internal business process perspective
On time delivery;Average shopfloor personnel qualification
Customer perspective
Customer satisfaction
Learning and growth perspective

Question 10

Which of the following statements is most correct about the selection of performance measures?

Accepted Answer

A)  The key stakeholders are the owners of the firm and therefore financial performance measures will always be the most crucial. 
B)  In today's environment,firms are likely to have an appropriate mix of both financial and non-financial performance measures. 
C)  In the contemporary manufacturing environment,it is likely that non-financial performance measures will replace financial performance measures. 
D)  Because of the focus on critical success factors,it is likely that non-financial performance measures will replace financial performance measures. 
A)  The key stakeholders are the owners of the firm and therefore financial performance measures will always be the most crucial. 
B)  In today's environment,firms are likely to have an appropriate mix of both financial and non-financial performance measures. 
C)  In the contemporary manufacturing environment,it is likely that non-financial performance measures will replace financial performance measures. 
D)  Because of the focus on critical success factors,it is likely that non-financial performance measures will replace financial performance measures.

Question 11

Which of the following are used by most successful organisations when evaluating performance?
Financial performance measures
Non-financial performance measures

Accepted Answer

A)  No
Yes 
B)  Yes
No 
C)  Yes
Yes 
D)  To a limited degree only
Yes 
A)  No
Yes 
B)  Yes
No 
C)  Yes
Yes 
D)  To a limited degree only
Yes

Question 12

Which of the following statements about performance measures is most correct and complete?

Accepted Answer

A)  Most financial performance measures are lead indicators. 
B)  Most financial performance measures are lag indicators. 
C)  All non-financial performance measures are lead indicators. 
D)  All non-financial performance measures are lag indicators. 
A)  Most financial performance measures are lead indicators. 
B)  Most financial performance measures are lag indicators. 
C)  All non-financial performance measures are lead indicators. 
D)  All non-financial performance measures are lag indicators.

Question 13

Which of the following statements is/are false?
i.It is important that performance measures be benchmarked to high external standards
ii.Measures should be easy to understand and communicate to all employees involved in the particular function or activity.
iii.It is more motivational to express delivery performance as 15 per cent late than 85 per cent on time.

Accepted Answer

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

Which of the following is the most appropriate lead indicator in relation to 'customer satisfaction rating'?

The internal business process perspective of a balanced scorecard may contain which of the following set of performance measures?

One way of setting up a system of continuous improvement is to utilise benchmarking for comparing products functions and activities.

Measures that monitor the factors that drive outcomes are called:

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

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.

A firm using the balanced scorecard has included among its strategies 'to improve bottom-line profit we need to improve working conditions'.Which of the following statements best describes the evaluation of the firm's success in implementing the strategy?

The steps to be taken in the benchmarking process are: i.establishing performance goals ii.identifying functions or activities to be benchmarked iii.implementing plans iv.data collection and analysis v.selecting benchmark partners What is the correct sequence of these steps?

Which of the following statements is most correct about the selection of performance measures?

Which of the following are used by most successful organisations when evaluating performance? Financial performance measures Non-financial performance measures

Which of the following statements about performance measures is most correct and complete?

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

Which of the following is the most appropriate lead indicator in relation to 'customer satisfaction rating'?

The internal business process perspective of a balanced scorecard may contain which of the following set of performance measures?

One way of setting up a system of continuous improvement is to utilise benchmarking for comparing products functions and activities.

Measures that monitor the factors that drive outcomes are called:

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

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.

A firm using the balanced scorecard has included among its strategies 'to improve bottom-line profit we need to improve working conditions'.Which of the following statements best describes the evaluation of the firm's success in implementing the strategy?

The steps to be taken in the benchmarking process are: i.establishing performance goals ii.identifying functions or activities to be benchmarked iii.implementing plans iv.data collection and analysis v.selecting benchmark partners What is the correct sequence of these steps?

Which of the following statements is most correct about the selection of performance measures?

Which of the following are used by most successful organisations when evaluating performance? Financial performance measures Non-financial performance measures

Which of the following statements about performance measures is most correct and complete?

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