Performance Management MCQ Quiz in मल्याळम - Objective Question with Answer for Performance Management - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക
Last updated on Mar 23, 2025
Latest Performance Management MCQ Objective Questions
Top Performance Management MCQ Objective Questions
Performance Management Question 1:
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 1 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 2:
Which of the following statements about transfer pricing is correct?
Answer (Detailed Solution Below)
Performance Management Question 2 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 3:
| $ | |
| 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 3 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
Performance Management Question 4:
Andrew School
All schools in the country of Wireland are funded by the state and are accountable to the Department of Education (DoE) which oversees educational standards and monitors performance of the schools.
The DoE's objectives, which are also the objectives for all the schools in Wireland , are to:
(1) Strive for continuous improvement in performance standards. (2) Provide a supportive learning environment, which encourages a high standard of pupil achievement. (3) Ensure pupils are prepared for adult life and have the skills and character necessary to contribute to society and the economy. (4) Provide all children with access to high quality education, regardless of their location or background.
Summary performance data for each school is accessible via the DoE's website. Parents in Wireland have the right to choose which school their child should attend and many parents use the performance data to help with their selection.
Inspectors from the DoE visit each school in Wireland at the end of every five years. The DoE believes that to gain a better insight into the quality of the teaching and learning environment, inspectors should attend a selection of lessons and speak to some of the pupils. Andrew School has recently had its inspection visit, and the school's data entry on the DoE's website has been updated following that visit. The revised entry is shown below:
Notes.
1 The 'exam results' indicator shows the percentage of pupils leaving school with at least five final exams including compulsory subjects of mathematics, science and languages at Grade A-C (the top three grades).
2 'Pupil progress' is an indicator of how well pupils have performed in compulsory subjects in their final exams at age 16 compared to their performance in intermediate exams at age 11. Academic grades are given numerical values, and the 'pupil progress' score is the movement in the average of pupils' grades. Scores typically range between -0.5 and +0.5.
3 There are six inspection grades: excellent; very good; good; average; poor and very poor.
4 The inspector's summary report for Andrew School concluded: "There is a very strong sense of community values and citizenship. Pupils appear to have a genuine respect for their teachers, and for one another, despite their diverse backgrounds."
5 The DoE recommends that the pupil/teacher ratio should be less than 22:1.
Required
(a) Explain the problems which not-for-profit organisations face as a result of having multiple objectives. (4 marks)
(b) Assess Andrew School's performance against the objectives set by the DoE, using the performance data published on the DoE's website.
Note. Use the four objectives in the template provided to structure your answer.
(12 marks)
(c) Explain the difficulties in assessing performance of schools in Wireland due to the qualitative nature of their objectives.
(4 marks)
(Total = 20 marks)
Answer (Detailed Solution Below)
Performance Management Question 4 Detailed Solution
a) The primary objective of commercial organisations is to maximise the wealth they generate for their owners (shareholders). In contrast, the objectives of NFPO's are often non-financial and reflect the interests which the various stakeholders have in an organisation. These stakeholders often have varying interests in the organisation, meaning that the organisation will also have a number of different objectives.
These conflicts may make it difficult to set clear objectives on which all stakeholders agree. Consequently, the organisation's management will face a dilemma when trying to decide which objectives are most important and therefore prioritised in the course of strategic planning and decision-making. This can be a particular problem when different objectives make different demands on resources or require different courses of action.
Another problem is that these organisations often do not generate revenue but simply have a fixed budget for spending which they have to keep to and are often subject to strong external influences which will influence the setting of objectives, eg political factors.
(b) Note. This solution is longer than one which candidates would need to produce to score the marks available. However, it is intended to illustrate the range of relevant points candidates could have identified from the scenario, and therefore the number of marks potentially available in this question.
Objective 1 - Strive for continuous improvement in performance standards.
The percentage of pupils achieving the target grades is not only below the national target, it is also lower than Andrew School achieved five years ago. As such, the school's does not appear to be achieving continuous improvement.
However, exam results alone are not necessarily an accurate indicator of a school's performance. For example, exam results will reflect the underlying ability of the pupils, as well as the quality of the teaching they receive.
There is a danger that if Andrew School focuses only on exam results it will become 'selective' and will only accept the most academically gifted pupils. However, such an approach would contradict the objective to 'provide 'all children' with access to high quality education, regardless of their background.
Pupil progress may be a more valuable measure than exam results, because the extent to which pupils' performance improves provides an indication of the value added by the school, rather than pupils' inherent ability.
Given the typical range of scores, Andrew School's performance in this respect (+0.4) is significantly above the national target (+0.25) and is at the upper end of the range.
The fact that pupil numbers have increased seems likely to suggest that the school is becoming more popular with parents. Given that parents can choose which school to select for their children, the increase in pupil numbers is likely to reflect a perception among parents that the school is performing well.
The results of the recent inspection visit would seem likely to reinforce this perception. Note. An alternative interpretation could be that all the other schools in the area are already full, and Andrew has spare capacity, which is why its pupil numbers increased. However, such an explanation seems less likely given the context of the other performance indicators.
Objective 2 – Provide a supportive learning environment, which encourages a high standard of pupil achievement.
The ‘pupil progress’ score suggests the school is providing children with a high quality education and a learning environment which encourages a high standard of pupil achievement. The fact that Andrew School’s 20X7 score is higher than its 20X2 score also suggests an improvement in the learning environment (although here again, to some extent the scores may reflect pupils’ aptitude for learning as well as the efforts of the school).
The school’s inspection grade is higher than five years ago, and is above the national target, which suggests the school is improving, and is performing relatively well. Although there is no indication that the DoE gives any more weighting to any single aspect of the performance data compared to other areas, the inspection grades could potentially be the most important indicator of how well as school is performing.
However, although Andrew School’s grading is ‘Very good’ this suggests there is still room for further improvement, because the school did not achieve the top grade: ‘Excellent’.
Andrew School’s teacher/pupil ratio has remained essentially the same over the last five years – at 19 pupils per teacher, which is favourable compared to the national target of 22 pupils per teacher. 20X7: 662 pupils/35 members of teaching staff = 18.9 pupils per member of staff 20X2: 627 pupils/33 members of teaching staff = 19 pupils per member of staff
Having a low teacher pupil ratio is likely to be beneficial because it will allow teachers to give more time to each pupil, thereby providing a supportive learning environment.
Given that the school is funded by the DoE, it seems likely that the DoE would have had to authorise the budget needed to recruit the additional teachers. On this basis, the fact that Andrew School has been able to increase the number of teachers it employs suggests that the DoE is pleased with the way it is performing, and therefore authorised the additional budget.
Objective 3 – Ensure pupils are prepared for adult life and have the skills and character necessary to contribute to society and the economy.
The inspector has highlighted Andrew School’s ‘strong sense of community values and citizenship’. This suggests the school is performing well in relation to the objective of preparing students for adult life, and developing their social skills.
Exam results and the 'pupil progress' scores in compulsory subjects indicate that the school is making a significant contribution in providing pupils with core knowledge and skills necessary for adulthood.
Objective 4 – Provide all children with access to high quality education, regardless of their location or background.
The inspector's report has highlighted that pupils at Andrew School come from diverse backgrounds' and awarded the school an improved grading over the last five years. Coupled with 'pupil progress' scores, this indicates that the school is fulfilling the objective to provide children which access to high quality education, regardless of their background.
(c) In order to assess any organisation's performance against its objectives, performance information needs to be available, and, in many cases, this information is obtained by measuring aspects of performance relevant to the objectives.
Difficulties of measurement
However, one of the inherent difficulties with qualitative objectives compared to quantifiable objectives is how to measure them.
For example, exam success rate (% of pupils achieving 5 grades A-C) is quantifiable, and relatively easy to measure, using exam results data. However, trying to measure the overall quality of education in a school or whether a school provides a 'supportive learning environment' is potentially much more difficult, because there aren't any specific outputs (eg results) which can be measured.
So, while exam results and pupil progress metrics are indicators of pupil achievement in schools – which can be measured – assessing them only provides a partial assessment of whether schools are providing children with 'access to high quality education' or whether they are providing 'supportive learning environment which encourages a high standard of pupil achievement'.
A related problem is that the aspects of performance which are monitored end up being the ones where performance can most easily be measured, rather than those which are most important in ensuring that the objectives are achieved.
The DoE has recognised these issues though and acknowledged the need for inspectors to visit schools on a regular basis, to gain an insight into the aspects of performance which cannot be reflected in statistical measures.
Subjectivity
Another major problem with assessing qualitative aspects of performance is that they tend to be subjective. For example, people are likely to have different expectations of what constitutes a high quality of education, a supportive learning environment, or the extent to which students are prepared for adult life.
In this respect, one of the key things the DoE has to ensure is that its inspectors are consistent in their grading of schools. For example, if one inspector rates a school as 'Good', but another inspector would have rated the same school as 'Excellent', this inconsistency would significantly reduce the validity of the performance data which is produced.
Performance Management Question 5:
Comprehension:
BBB Co has developed a new product. The first batch of 50 units will take 750 labour hours to produce. There will be an 90% learning curve that will continue until 3,550 units have been produced. Batches after this level will each take the same amount of time as the 71st batch. The batch size will always be 50 units.
Note. The learning index for a 90% learning curve is -0.152
Ignore the time value of money.
The learning curve effect in Tom Co could be extended by which of the following?
Answer (Detailed Solution Below)
Performance Management Question 5 Detailed Solution
The correct option is option 2
Additional Information:
Increasing staff training could lead to an extension of the learning curve as the higher skilled employees should demonstrate an even greater improvement than if they were not trained.
Performance Management Question 6:
Comprehension:
BBB Co has developed a new product. The first batch of 50 units will take 750 labour hours to produce. There will be an 90% learning curve that will continue until 3,550 units have been produced. Batches after this level will each take the same amount of time as the 71st batch. The batch size will always be 50 units.
Note. The learning index for a 90% learning curve is -0.152
Ignore the time value of money.
The costs of producing more units in Tom Co has been reduced due to the following factors. Which factor from those below is due to the learning curve effect?
Answer (Detailed Solution Below)
Performance Management Question 6 Detailed Solution
The correct option is option 3
Additional Information:
The learning effect leads to a reduction in labour hours per batch, which therefore lowers the labour costs. The other factors are not affected by the learning rate.
Performance Management Question 7:
Comprehension:
BBB Co has developed a new product. The first batch of 50 units will take 750 labour hours to produce. There will be an 90% learning curve that will continue until 3,550 units have been produced. Batches after this level will each take the same amount of time as the 71st batch. The batch size will always be 50 units.
Note. The learning index for a 90% learning curve is -0.152
Ignore the time value of money.
The following statements have been made about Tom Co and the learning curve:
(1) The learning effect comes to an end in Tom Co after the 71st unit; however, some learning effects can continue indefinitely.
(2) The learning curve is restricted to the manufacturing industry.
Which of the above statements is/are true?
Answer (Detailed Solution Below)
Performance Management Question 7 Detailed Solution
The correct option is option 3
Additional Information:
The learning curve will eventually come to an end in all cases.
The use of the learning curve is not restricted to the manufacturing industries that it is traditionally associated with. It is also used in other less-traditional sectors, such as professional practice, financial services, publishing and travel.
Performance Management Question 8:
Comprehension:
BBB Co has developed a new product. The first batch of 50 units will take 750 labour hours to produce. There will be an 90% learning curve that will continue until 3,550 units have been produced. Batches after this level will each take the same amount of time as the 71st batch. The batch size will always be 50 units.
Note. The learning index for a 90% learning curve is -0.152
Ignore the time value of money.
The total time for the first 16 batches of units was 8,500 hours.
What was the actual learning rate closest to (to the nearest %)?
___________%
Answer (Detailed Solution Below)
Performance Management Question 8 Detailed Solution
The correct option is option 1
Additional Information:
| Batches | Total time | Average time/unit |
| 1 | 750 | 750 |
| 2 | 750 × r | |
| 4 | 750 × r2 | |
| 8 | 750 × r3 | |
| 16 | 8,500 | 750 × r4 |
8,500 = 16 × 750 r4
8,500/(16 × 750) = r4
r = 0.92 or 92%
Performance Management Question 9:
Comprehension:
BBB Co has developed a new product. The first batch of 50 units will take 750 labour hours to produce. There will be an 90% learning curve that will continue until 3,550 units have been produced. Batches after this level will each take the same amount of time as the 71st batch. The batch size will always be 50 units.
Note. The learning index for a 90% learning curve is -0.152
Ignore the time value of money.
What is the time taken for the 71st batch?
Answer (Detailed Solution Below)
Performance Management Question 9 Detailed Solution
The correct option is option 2
Additional Information:
Cumulative average time per batch for the first 71 batches
y = a × b
Where y = the cumulative average time per unit to produce x units
x = the cumulative number of units
a = the time taken for the first unit of output
b = the index of learning (log LR/log2)
The cumulative average time per batch, with a learning curve of 90%, is therefore
Y = aX - 0.152
where a = the time for the first batch (750 hours) and X is the number of the batch. For the 71st batch, X = 71 .
Y = 750 × 71-0.152
= 750 × 0.5231 = 392.35
The cumulative average time per batch for the first 71 batches is 392.35 hours.
Time taken for the 71st batch
The cumulative average time per batch for the first 70 batches is
Y = 750 × 70-0.152
= 750 × 0.5243 = 393.23
| Hours | |
| Total time for 1st 71 batches (71 × 392.35) | 27,856.85 |
| Total time for 1 st 70 batches (70 × 393.23) | 27,526.10 |
| Time for the 71st batch | 330.75 |
Performance Management Question 10:
Oscar Co
Oscar Co makes two types of Oscar computer, the Xeno (X) and the Yong (Y). X currently generates a contribution of $30 per unit and Y generates a contribution of $40 per unit. There are three main stages of production: the build stage, the program stage and the test stage. Each of these stages requires skilled labour which, due to a huge increase in demand for Oscar computers, is now in short supply. The following information is available for the two products:
Oscar Co is now preparing its detailed production plans for the next quarter. During this period, it expects that the skilled labour available will be 30,000 hours (1,800,000 minutes) for the build stage, 28,000 hours (1,680,000 minutes) for the program stage and 12,000 hours (720,000 minutes) for the test stage. The maximum demand for X and Y over the three-month period is expected to be 85,000 units and 66,000 units respectively. Fixed costs are $650,000 per month.
Due to rapid technological change, the company holds no inventory of finished goods.
Required:
-
Use linear programming to calculate the optimum number of each product which Oscar Co should make in the next quarter assuming it wishes to maximise contribution. Calculate the total profit for the quarter. (14 marks)
-
Calculate the amount of any slack resources arising as a result of the optimum production plan and explain the implications of these amounts for decision making within Oscar Co. (6 marks)
(20 marks)
Answer (Detailed Solution Below)
Performance Management Question 10 Detailed Solution
(a) Optimum production plan
Define the variables
Let x = number of units of Xeno to be produced.
Let y = number of units of Yong to be produced.
Let C = contribution.
State the objective function: C = 30x+ 40y
Subject to the constraints:
Build time: 24x + 20y ≤ 1,800,000
Program time: 16x + 14y ≤ 1,680,000
Test time: 10x + 4y ≤ 720,000
Non-negativity constraints : x, y ≥ 0
Sales constraints: x ≤ 85,000 and y ≤ 66,000
Workings for drawing the graph
Build time:
If x = 0, y = 1,800,000/20 = 90,000
If y = 0, x = 1,800,000/24 = 75,000
Program time:
If x = 0, y = 1,680,000/14 = 120,000
If y = 0, x = 1,680,000/16 = 105,000
Test time:
If x = 0, y = 720,000/4 = 180,000
If x = 0, y = 720,000/10 = 72,000
Plot an iso-contribution line
If y = 40,000, C = 40,000 × $40 = $1,600,000
If C = $1,600,000 and y = 0, x = $1,600,000/$30 = 53,333.33
See graph
Moving the iso-contribution line out to the furthest point on the feasible region, the optimum production point is b. This is the intersection of the build time constraint and the sales constraint for y. Solving the simultaneous equations for these two constraints:
y = 66,000
24x + 20y = 1,800,000
24x + (20 × 66,000) = 1,800,000
24x + 1,320,000 = 1,800,000
24x = 480,000
x = 20,000
C = (20,000 × $30) + (66,000 × $40) = $600,000 + $2,640,000 = $3,240,000
Fixed costs = 3 × $650,000 = $1,950,000
Therefore profit = $1,290,000
(b) Slack resources
Test time used = (20,000 × 10)/60 + (66,000 × 4)/60 = 7,733 hours
Therefore slack hours = 12,000 − 7,733 = 4,267 hours
Program time used = (20,000 × 16)/60 + (66,000 × 14)/60 = 20,733 hours
Therefore slack hours = 28,000 − 20,733 = 7,267 hours
The slack values for test time and program time mean that there are 4,267 and 7,267 hours of each respective department’s time unutilised under the optimum production plan. If possible, this time could be used by the organisation elsewhere or subcontracted out to another company.