brodidit for students
F Performance measurement
ACCA · Management Accounting · 6 questions
Name: ____________________ Date: ____________
What is a critical success factor?
- A An area in which the organisation must perform well to achieve its objectives
- B A list of all stakeholders
- C A short-term budget target
- D A measure of profit
Customer satisfaction scores are an example of a measure in which perspective of the balanced scorecard?
- A Customer
- B Internal business process
- C Innovation and learning
- D Financial
Staff training hours and new product launches are measures in which perspective of the balanced scorecard?
- A Innovation and learning
- B Customer
- C Financial
- D Internal business process
Which of the three Es means obtaining inputs at the lowest cost for an appropriate quality?
- A Efficiency
- B Effectiveness
- C Equity
- D Economy
What is the difference between cost control and cost reduction?
- A Cost control permanently lowers the standard
- B Cost reduction keeps costs within a standard
- C They mean the same thing
- D Cost control keeps costs within a standard, and cost reduction lowers the standard permanently
Value analysis aims to:
- A Increase the number of suppliers
- B Remove costs that do not add value, without harming quality or function
- C Reduce the amount of advertising
- D Raise the selling price
Answer key
1. A, 2. A, 3. A, 4. D, 5. D, 6. B
CSFs are the few things that must go right. KPIs measure them.
Customer measures include satisfaction, retention and market share.
These measure the ability to improve and create value in future.
Efficiency is the ratio of outputs to inputs and effectiveness is achieving objectives.
Control works within the existing standard. Reduction changes it.
It reviews each feature of a product to see whether its cost is justified.