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F Performance measurement

Written by Mahnoor Sheikh (ACCA)

6 ACCA Management Accounting questions with answers and explanations.

Printable worksheet with answer key

All questions with answers
  1. What is a critical success factor?

    • 1 An area in which the organisation must perform well to achieve its objectives
    • 2 A list of all stakeholders
    • 3 A short-term budget target
    • 4 A measure of profit
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    Correct answer: An area in which the organisation must perform well to achieve its objectives

    CSFs are the few things that must go right. KPIs measure them.

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  2. Customer satisfaction scores are an example of a measure in which perspective of the balanced scorecard?

    • 1 Customer
    • 2 Internal business process
    • 3 Innovation and learning
    • 4 Financial
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    Correct answer: Customer

    Customer measures include satisfaction, retention and market share.

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  3. Staff training hours and new product launches are measures in which perspective of the balanced scorecard?

    • 1 Innovation and learning
    • 2 Customer
    • 3 Financial
    • 4 Internal business process
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    Correct answer: Innovation and learning

    These measure the ability to improve and create value in future.

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  4. Which of the three Es means obtaining inputs at the lowest cost for an appropriate quality?

    • 1 Efficiency
    • 2 Effectiveness
    • 3 Equity
    • 4 Economy
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    Correct answer: Economy

    Efficiency is the ratio of outputs to inputs and effectiveness is achieving objectives.

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  5. What is the difference between cost control and cost reduction?

    • 1 Cost control permanently lowers the standard
    • 2 Cost reduction keeps costs within a standard
    • 3 They mean the same thing
    • 4 Cost control keeps costs within a standard, and cost reduction lowers the standard permanently
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    Correct answer: Cost control keeps costs within a standard, and cost reduction lowers the standard permanently

    Control works within the existing standard. Reduction changes it.

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  6. Value analysis aims to:

    • 1 Increase the number of suppliers
    • 2 Remove costs that do not add value, without harming quality or function
    • 3 Reduce the amount of advertising
    • 4 Raise the selling price
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    Correct answer: Remove costs that do not add value, without harming quality or function

    It reviews each feature of a product to see whether its cost is justified.

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