F Performance measurement

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

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

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

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

• 1 Efficiency
• 2 Effectiveness
• 3 Equity
• 4 Economy

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

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