Performance Management MCQ Quiz in हिन्दी - Objective Question with Answer for Performance Management - मुफ्त [PDF] डाउनलोड करें
Last updated on Mar 25, 2025
Latest Performance Management MCQ Objective Questions
Top Performance Management MCQ Objective Questions
Performance Management Question 1:
Comprehension:
Zak Co
Zak Co is a large supplier of industrial metals. The company is split into divisions: Division F and Division N. Each division operates separately as an investment centre, with each having full control over its non-current assets. In addition, both divisions are responsible for their own current assets, controlling their own levels of inventory and having full responsibility for the credit terms granted to customers and the collection of receivables. Similarly, each division has full responsibility for its current liabilities and deals directly with its own suppliers. All cash balances are automatically transferred to a company bank account at the end of each day and are not therefore included in the definition of divisional capital.
The following figures relate to two of the divisions, Division F and Division N for the most recent financial year:
|
Division F |
Division N |
|
|
$000 |
$000 |
|
|
Sales |
14,500 |
8,700 |
|
Controllable profit |
2,645 |
1,970 |
|
Less apportionment of head office costs |
(1,265) |
(684) |
|
Net profit |
1,380 |
1,286 |
|
Non-current assets |
9,760 |
14,980 |
|
Inventory and trade receivables |
2,480 |
3,260 |
|
Trade payables |
2,960 |
1,400 |
Question
1.
Select the appropriate figures from the list below to identify the return on investment of each division if the controllability principle is observed.
F
N
Options available
7.6% , 10.0% , 11.7% , 13.2% ,14.9% , 17.4% , 27.1% , 28.5%
Answer (Detailed Solution Below)
Performance Management Question 1 Detailed Solution
The correct option is option 1
Additional Information:
The controllability principle means that managers should only be judged based on things within their control. Controllable profit should be used to calculate ROI since it ignores head office recharges, which are outside of the control of the management. Since the divisions are responsible for investment in non-current assets, current assets and current liabilities, all such items should be included in net assets.
WORKING NOTE
| Division F | Division N | |
| $000 | $000 | |
| Controllable profit | 2,645 | 1,970 |
| Non-current assets | 9,760 | 14,980 |
| Inventory, cash and trade receivables | 2,480 | 3,260 |
| Trade payables | (2,960) | (1,400) |
| Total net assets | 9,280 | 16,840 |
| Therefore, ROI | 2,645/9,280 x 100 | 1,970.16,480 x 100 |
| 28.5% |
11.7% |
Performance Management Question 2:
Chemical X is made by combining two materials in a special process. It is normal for 10% of the volume of materials input to be lost during the process and this has been reflected in the expected yield of chemical X. In the most recent period, an adverse yield variance was recorded.
What is the most likely cause of the adverse yield variance?
Answer (Detailed Solution Below)
Performance Management Question 2 Detailed Solution
The correct option is option 4
Additional Information:
- A faulty thermostat would lead to an adverse yield variance because a greater proportion of inputs is wasted.
- Staff training on waste reduction should, if anything, lead to a favourable yield variance as there should be less waste. Increased cost of materials would affect the materials price variance, but not the yield. The fall in selling price would affect the sales price variance but not the yield.
Performance Management Question 3:
A 75% learning curve has been determined to be appropriate for a particular task. (For a learning rate of 75% the value of the index of learning b is -0.4150375.) The initial timing of the person performing that job was 50 minutes.
If the task needs to be performed 500 times, how many minutes of work will be required (to nearest minute)?
Answer (Detailed Solution Below)
Performance Management Question 3 Detailed Solution
The correct option is option 2
Additional Information:
- Calculating the cumulative average time per unit for 500 times, using the formula:
- Y = axb:
- a = 50 minutes, x = 500, b = −0.4150375
- Y = 3.791. This is the cumulative average time per job.
- Therefore total time for 500 = 500 × 3.791 = 1,895.5 minutes.
Performance Management Question 4:
The following graph relates to a linear programming problem:
The objective is to maximise contribution and the dotted line on the graph depicts this function. There are three constraints which are all of the “less than or equal to” type which are depicted on the graph by the three solid lines labelled (1), (2) and (3).
At which intersection is contribution maximised?
Answer (Detailed Solution Below)
Performance Management Question 4 Detailed Solution
The correct option is option 4
Additional Information:
- Where (1) meets the x-axis constraints (2) and (3) do not impact contribution as these constraints intersect the x-axis further along. Constraint 1 is the limiting factor.
Performance Management Question 5:
A company operating a standard costing system has direct labour standards per unit for one of its products: 4 hours at $12.50 per hour
Last month when 2,195 units of the product were manufactured, the actual direct labour cost for the 9,200 hours worked was $110,750.
What was the direct labour rate variance for last month?
Answer (Detailed Solution Below)
Performance Management Question 5 Detailed Solution
The correct option is option 1
Additional Information:
- Actual cost $110,750
- Actual hours at standard rate (9,200 × 12.50) $115,000
- Variance ($) 4,250 F Rate
Performance Management Question 6:
The standard direct material cost per unit for a product is calculated as follows:
10.5 litres at $2.50 per litre
Last month the actual price paid for 12,000 litres of material used was 4% above standard and the direct material usage variance was $1,815 favourable. No inventory of material is held.
What was the adverse direct material price variance for last month?
Answer (Detailed Solution Below)
Performance Management Question 6 Detailed Solution
The correct option is option 2
Additional Information:
- Adverse price variance (0.04 × 2.50 × 12,000) = $1,200
Performance Management Question 7:
The following statements have been made about the balanced scorecard:
- It focuses solely on non-financial performance measures
- It looks at both internal and external matters concerning the organisation
Which of the above statements is/are true?
Answer (Detailed Solution Below)
Performance Management Question 7 Detailed Solution
The correct option is option 2
Additional information:
- The balances scorecard includes both financial and non-financial performance measures, so (1) is incorrect.
- It does attempt to look at external matters – for example, measures may include benchmarks, showing how the organisation is performing compared to competitors.
Performance Management Question 8:
Product C currently sells 8,000 units per year at a price of $50 per unit. Market research shows that an increase in price of $2 would decrease annual sales by 800 units.
What is the marginal revenue at an output level of 6,000 units (to the nearest $)?
Answer (Detailed Solution Below)
Performance Management Question 8 Detailed Solution
The correct option is option 2
Additional Information:
- In the marginal revenue exam formula, MR = a − 2bQ, a is the price at which the demand (Q) would be zero, and b is the change in P/the change in Q.
- b = 2/−800 = −0.0025
- a = 50 + (8,000 × 0.0025) = 70
- MR = 70 − (2 × 0.0025)Q = 70 − 0.005Q.
- At the given quantity of 6,000, MR = 70 − (0.005 × 6,000) = $40.
Performance Management Question 9:
Which of the following statements about transfer pricing is correct?
Answer (Detailed Solution Below)
Performance Management Question 9 Detailed Solution
The correct option is option 4
Additional Information:
- If a cost plus price is used, the transferring (selling) division has no incentive to reduce its costs.
- A transfer price below market price may be appropriate, for example when internal sales incur lower costs than external sales.
- Market prices may lead to goal incongruence and, therefore, will not always maximise overall company profits.
Performance Management Question 10:
| $ | |
| Direct materials | 20 |
| Direct labour | 15 |
| Variable production overheads | 5 |
| Fixed production overheads | 10 |
| 50 | |
| Standard selling price | 80 |
Actual production was 18,500 units and 17,000 units were sold. Actual fixed production overheads were $165,000.
Answer (Detailed Solution Below)
Performance Management Question 10 Detailed Solution
The correct option is option 2
Additional Information:
- Budgeted fixed overhead expenditure = $10 × 16,000 = $160,000
- Expenditure variance = Actual expenditure − budgeted expenditure = $165,000 − $160,000 = $5,000 adverse