Which of the following is an advantage to an organisation of using non–financial performance measures,
rather than traditional financial measures?
Culturally expected
Gives a wider view of business performance
Less subjective measurement
Cheaper to measure
A bus company uses Kaplan and Norton's balanced scorecard as a way of developing its performance
measurement mix.
One of the measures it has chosen to use is the number of days of driver training each year. The
company feels that this will reduce the number of accidents and casualties due to more skilled and
motivated drivers.
Which ONE of the balanced scorecard perspectives would this measure relate to?
Learning and growth
Internal business processes
Customer perspective
Financial perspective
Which of the following would be classified as an internal efficiency measure within the performance
pyramid?
Customer satisfaction
Cycle time
Delivery
Quality
Which of the following is a critical success factor within the Fitzgerald and Moon Building Block model?
Ownership
Motivation
Rewards
Innovation
YU Ltd is a multinational company that makes and sells one major product, the TRT. The company is
aware that the TRT is starting to show signs of decline. YU wishes to undertake one or more of the
following strategies to deal with this:
(i) Rebranding TRT. YU believes that this will extend the life of the TRT by five years.
(ii) Replacing the current computerised inventory management system, which is coming to the end of its
useful life.
(iii) Altering YU's internal transfer pricing to reduce its overall tax liability.
(iv) Adjusting YU's reported profit figures to remove the effect of GAAP for external reporting.
Which of the above strategies will be consistent with a shareholder value analysis (SVA) approach?
(ii) and (iv)
(i) and (iii)
(ii) and (iii)
(i) and (iv)
Which of the following benefits is consistent with the use of triple bottom line (TBL) reporting?
Cost savings through reduced wastage
Measures are all based on objective cashflows, rather than subjective accounting profits
Decisions made ensure shareholder wealth is maximised
Cheap and easy measurement of targets
Effective communication of the performance measurement mix is important. Which of the following is
false?
Setting unattainable targets will motivate employees.
If employees understand the reason for the performance targets that are being set, they are
more likely to 'buy in' to the performance measurement mix and see it as important.
An explanation of how the employee's performance is going to be measured will increase the
likelihood that they will understand how to meet the targets they are being set.
Explaining the impact of hitting or missing their targets (i.e. impact on pay rises or bonuses) will
ensure that the employee is aware of the personal advantages of conforming to the
performance measurement mix, improving their motivation to meet the targets set.
Which of the following is not a role of the management accountant when considering the performance
measurement mix?
Help management decide on the performance measurement mix itself.
Help management analyse the organisation's strategy and suggest what measures will ensure
this strategy is achieved.
Help management decide what targets to set staff in each area of the performance
measurement mix.
Help management complete the annual financial statements to measure financial performance.
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