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6 ACCA Management Accounting questions with answers and explanations.
Printable worksheet with answer key
What is a critical success factor?
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.
Customer satisfaction scores are an example of a measure in which perspective of the balanced scorecard?
Correct answer: Customer
Customer measures include satisfaction, retention and market share.
Staff training hours and new product launches are measures in which perspective of the balanced scorecard?
Correct answer: Innovation and learning
These measure the ability to improve and create value in future.
Which of the three Es means obtaining inputs at the lowest cost for an appropriate quality?
Correct answer: Economy
Efficiency is the ratio of outputs to inputs and effectiveness is achieving objectives.
What is the difference between cost control and cost reduction?
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.
Value analysis aims to:
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.