Performance measurement

Hi Sir kindly help me with this theory question as well :

1) Which TWO of the following problem are associated with performance measurement on public sector organisations ?

– The profit is difficult to measure
– Unable to compare with the competition
– Regional benchmarking cannot be carried out
– Performance measures are difficult to define.

2) Which of the following are benefit of using activity based costing?

i- It recognises that overhead costs are not always driven by the volume of
production
ii- It does not result in under or over absorption of fixed overheads
iii- It avoids all arbitrary costs apportionments
iv- It is particularly useful in single product businesses

* i and ii
* i only
* ii and iii
*i and iv

3) Which TWA of the following are true of imposed budgeting?

i- Top management prepare a budget with little or not input from operating
staff.
ii- It reduces deliberate overestimation of costs and underestimation of revenue in budget
iii- It is most effective in large organisations
iv- It increases operational managers’ commitment to organisational objectives.

4) Which of the following statement about payback is true?

– Payback takes into account the time value of money
– Payback is useful as initial screening device
– A change in the costs of capital will affect the payback
– Payback id technically superior to NPV

5) Which of the following statements relating to value analysis are true?

– Value analysis is a planned, scientific approach to cost reduction
– Cost value is the market value of the product or service
– Value analysis attempts to enhance the esteem value of a product at the lowest cost
– One of the problem with value analysis is that it discourages innovation

6) The following statement refer to different types of planning in a large organisation:

i- Strategic planning is concerned with both quantitative and qualitative matters
ii- Tactical planning is concerned with setting long term objectives
iii- Operating planning is concerned with a time horizon starting one year from now

Which of these statement is/are correct?
– i and ii
– i only
– ii only
– ii and iii

7) Which of the following is NOT a dimension which is used to measure performance in service organisations?

– Resource utilisation
– Innovation
– Quality inspection in advance
– Financial performance

8) Which accounts should be debited and credited to form the correct journal entry to record the direct labour costs charged to production?

Account to be debited ——- a) wages control b) production overhead control c) work-in-progress control

Account to be credited ——- a) wages control b) production overhead control c) work-in-progress control

9)The performance of a publicly funded hospital is monitored using measures based upon the ‘ three E’s ‘ . The most important performance measure is considered to be the achievement of hospital targets for the successful treatment of patients.

Which of the three Es best describes the above measure?

– Effectiveness
– Economy
– Extemality
– Efficiency

10) Which of the following defines the prime cost of a product?

– The cost of making the first unit of a product
– The material cost of a product
– The total production cost of a product
– The total direct cost of a product

11) A company used government produced data that showed the economy grew by 4.6% in the last year.

Which of the following describes the data used by the company?

– Primary and continuous
– Secondary and discrete
– Secondary and continuous
– Primary and discrete

12) Three activities associated with budgeting are as follows:

(1) Preparing the master budget
(2) Determining the principal budget factor
(3) Flexing the budget in line with the actual

Which is the correct sequence for these activities?

– 1 , then 3 , then 2
– 1 , then 2 , then 3
– 2 , then 3 , then 1
– 2 , then 1 , then 3

13) Which of the following statement, relating to performance measurement, are true?

i- External data are never required to assess the performance of an organisation
ii- The degree of government regulation should be considered when comparing the performance of public sector and private sector organisations
iii- Financial performance indicators are only relevant to private sector organisations

– ii only
– i only
-iii only
– ii and iii

14) A company uses the Economy Order Quantity (EOQ) model and holds no buffer inventory. Its annual cost of holding one unit in inventory has decreased.

What is the effect, if any. of this decrease in holding costs on the EOQ and on the total annual cost of placing orders?

EOQ ( ) Increase ( )Decrease ( )No effect

Total annual cost of placing order ( ) Increase ( )Decrease ( )No effect