Performance Management MCQ Quiz in मराठी - Objective Question with Answer for Performance Management - मोफत PDF डाउनलोड करा

Last updated on Apr 10, 2025

पाईये Performance Management उत्तरे आणि तपशीलवार उपायांसह एकाधिक निवड प्रश्न (MCQ क्विझ). हे मोफत डाउनलोड करा Performance Management एमसीक्यू क्विझ पीडीएफ आणि बँकिंग, एसएससी, रेल्वे, यूपीएससी, स्टेट पीएससी यासारख्या तुमच्या आगामी परीक्षांची तयारी करा.

Latest Performance Management MCQ Objective Questions

Top Performance Management MCQ Objective Questions

Performance Management Question 1:

NG is deciding which of four potential venues should be used to stage an entertainment event. Demand for the event may be low, medium or high depending on weather conditions on the day. The management accountant has estimated the contribution that would be earned for each of the possible outcomes and has produced the following regret matrix:

  Regret Matrix
Venue Ayefield Beefield Ceefield Deefield
Demand        
Low $0 $200,000 $300,000 $450,000
Medium $330,000 $110,000 $0 $150,000
High $810,000 $590,000 $480,000 $0

If the company applies the minimax regret criterion, which venue would be chosen?

  1. Ayefield
  2. Beefield
  3. Ceefield
  4. Deefield

Answer (Detailed Solution Below)

Option 4 : Deefield

Performance Management Question 1 Detailed Solution

The correct option is option 4.

WORKING

Maximum regret if Ayefield venue is chosen is $ 810,000

Maximum regret if Beefield venue is chosen is $ 590,000

Maximum regret if Ceefield venue is chosen is $ 480,000

Maximum regret if Deefield venue is chosen is $ 450,000

Therefore if NG wants to minimise the maximum regret it should stage the entertainment event at the Deefield venue.

Performance Management Question 2:

The following statements have been made about expected values:

  1. Expected value is of limited use for decisions regarding outcomes which will be repeated often
  2. Using expected value in decision-making can lead to the worst possible outcome being ignored
  3. The reliability of expected value calculations is heavily influenced by the accuracy of the probabilities assigned to outcomes

Which of the statements are correct?

  1. 1, 2 and 3
  2. 1 and 2 only
  3. 1 and 3 only
  4. 2 and 3 only

Answer (Detailed Solution Below)

Option 4 : 2 and 3 only

Performance Management Question 2 Detailed Solution

The correct option is option 4.

Additional information: 

Expected value is most useful for decisions that are repeated often since the expected value is an average that would be expected if a decision were to be repeated many times, so statement (1) is incorrect.

Performance Management Question 3:

The committee of a new golf club is setting the annual membership fee. The number of members depends on the membership fee charged and economic conditions. The forecast annual cash inflows from membership fees are shown below:

  Membership fee
  $600 $800 $900 $1,000
Economic conditions:        
Low 360 400 360 320
Average 480 440 405 380
High 540 480 495 420

Applying the minimax regret criterion, what fee would be set by the committee?

  1. $600
  2. $800
  3. $900
  4. $1,000

Answer (Detailed Solution Below)

Option 1 : $600

Performance Management Question 3 Detailed Solution

The correct option is option 1.

Additional information:

Table of regrets (opportunity cost):

  Membership fee
  $600 $800 $900 $1,000
Economic conditions:        
Low 40 0 40 80
Average 0 40 75 100
High 0 60 45 120
Maximum regret 40 60 75 120

Therefore, a price of $600 will lead to the lowest maximum regret.

Performance Management Question 4:

The cost card for Product Tom is as follows:

  $
Selling price 150
Variable costs (70)
Contribution per unit 80
Fixed costs (50)
Profit per unit 30

Expected demand for Product Tom is 10,000 units.

What is the sensitivity of Product Tom, to the nearest 0.1%, to changes in demand?

  1. 37.50%
  2. 40.00%
  3. 60.00%
  4. 62.50%

Answer (Detailed Solution Below)

Option 1 : 37.50%

Performance Management Question 4 Detailed Solution

The correct option is option 1.

Additional information:

At breakeven demand, contribution of Product Tom = fixed costs

Assume breakeven demand = x

80x = (10,000 × $50)

x = 6,250

Sensitivity = ((10,000 − 6,250)/10,000) × 100% = 37.5%

Performance Management Question 5:

Greenwood Movies Co is considering whether to build a small or large cinema. The available market data suggests that there is a 30% risk that demand will be low.

  Demand
  Low High
  $ $
Small 100,000 400,000
Large (300,000) 600,000

Greenwood Movies Co has calculated that it would be best to build the large cinema, on the basis that it has the higher expected value. However, Greenwood Movies Co could commission a survey which would accurately predict the level of demand.

What is the maximum that Greenwood Movies Co should pay for the survey?

  1. $100,000
  2. $120,000
  3. $310,000
  4. $330,000

Answer (Detailed Solution Below)

Option 2 : $120,000

Performance Management Question 5 Detailed Solution

The correct option is option 2.

Additional information:

Expected value without the survey

= ($600,000 × 0.7) + ( −$300,000 × 0.3) = $330,000

Expected value with the survey

= ($600,000 × 0.7) + ($100,000 × 0.3) = $450,000

Maximum value of the survey = $450,000 − $330,000 = $120,000

Performance Management Question 6:

The following statements have been made about the use of expected values in decision making:

  1. Expected values ignore the risk associated with decisions.
  2. Expected values are most useful for recurring rather than one-off events.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Neither 1 nor 2
  4. Both 1 and 2

Answer (Detailed Solution Below)

Option 4 : Both 1 and 2

Performance Management Question 6 Detailed Solution

The correct option is option 4.

Additional information:

Both statements are correct. Using expected values implies choosing the project with the highest expected value regardless of the risk associated with each one. Expected values are more appropriate for events that are repeated, since the expected value is an average of the outcomes.

Performance Management Question 7:

Product L, M, and S are produced by Division A, as outputs of a process at the split-off point. They may be sold externally, or transferred to Division B for further processing.

In November, Division A’s output was as follows:

Product Kg
L 1,200
M 1,400
S 1,800

The market selling prices per kg for the products, both at split-off point and after further processing, are as follows:

at split-off point $ after further processing $
L 5.60 LX 6.70
M 6.50 MX 7.90
S 6.10 SX 6.80

The specific costs for each of the individual further processes are:

Variable cost of $0.50 per kg of LX

Variable cost of $0.70 per kg of MX

Variable cost of $0.80 per kg of SX

Which of the products should be further processed in Division B in order to optimise the profit for the company?

  1. L only
  2. L and M
  3. L and S
  4. S and M

Answer (Detailed Solution Below)

Option 2 : L and M

Performance Management Question 7 Detailed Solution

The correct option is option 2.

Additional information:

Comparing the incremental revenue from further processing to the variable cost per unit of further processing:
 
      Incremental revenue Less variable cost Profit/(loss) Further process?
L (6.7 – 5.6) = 1.1                  $0.5 $0.6 Yes
M (7.9 – 6.5) = 1.4 $0.7 $0.7 Yes
S (6.8 – 6.1) = 0.7 $0.8 ($0.1) No
 
Process should further process L and M, since incremental revenue from further processing will exceed incremental costs. However, it should not further process S as incremental costs exceed incremental revenue in S’s case.

Performance Management Question 8:

Which of the following best describes the term relevant cash flow?

  1. The benefit which would have been obtained from the best alternative foregone
  2. The difference in future operating cash flows resulting from a decision
  3.  A future cash flow that cannot be avoided
  4. All cash flows, including financing cash flows, arising from a project

Answer (Detailed Solution Below)

Option 2 : The difference in future operating cash flows resulting from a decision

Performance Management Question 8 Detailed Solution

The correct option is option 2.

Additional information:

Benefit obtained from best alternative foregone describes opportunity costs, which are a type of relevant cost.

If the cash flow is unavoidable, it is not relevant.

All cash flows from a project may include non-incremental and unavoidable cash flows which are not relevant.

Performance Management Question 9:

Albrecht has received a request to make a special version of one of its products. This special version will use 2,000 units of material X.

Albrecht no longer uses material X, but there are 2,000 units left in inventory purchased at $4.00 per unit. The current purchase price is $4.75 per unit. Albrecht believes it could sell material X for $3.00 per unit. However, material X is similar to material Y that is currently in use by Albrecht and can be purchased for $6.50 per unit. It could use material X in place of material Y − however, it would cost $2.75 per unit to modify material X so that it could be used in place of material Y.

What is the relevant cost per unit of material X for the manufacture of the special version

  1. $ 3.00
  2. $ 3.75
  3. $ 4.0
  4. $ 4.75

Answer (Detailed Solution Below)

Option 2 : $ 3.75

Performance Management Question 9 Detailed Solution

The correct option is option 2.

Tutorial note: The relevant cost of material X is the opportunity cost as it is not used regularly.

Additional information:

Option 1 – sell it for $3.00 per unit.

Option 2 – use as substitute for material Y. Relevant cost is the saving per kg unit of material Y ($6.5) less the cost of modifying each unit of material X so it can be used in place of Y ($2.75) = $3.75.

Option 2 has the higher benefit, so this is what Albrecht would do with the 2,000 units of material X if they are not used on the contract. This is therefore the opportunity cost

Performance Management Question 10:

Loxwood Co is considering whether to sell its product, the tom, or process it further to make a different product, the tig. It has already incurred processing costs of $3 per unit in relation to the tom. If it sells the tom, it will sell 60,000 units at $8 per unit. Each unit of the tig requires 3 units of the tom and Loxwood Co would expect to sell 20,000 units of the tig. Further variable costs associated with the tig would be $6 per unit and further fixed costs would be $150,000. The selling price of the tig would be $40 per unit

What would be the gain or loss of using the available units of tom to manufacture the tig?

  1. $ 230,000 profit
  2. $ 200,000 profit
  3. $ 50,000 profit
  4. $ 130,000 loss

Answer (Detailed Solution Below)

Option 3 : $ 50,000 profit

Performance Management Question 10 Detailed Solution

The correct option is option 3.

Additional information:

Difference = Sales revenue from selling the tig – Additional costs of manufacturing the tig – Sales revenue foregone from selling the tom

Difference = (20,000 × $40) − (20,000 × $6) − $150,000 − (60,000 × $8) = $50,000, a positive figure, therefore a profit.

The processing costs of $3 per unit have already been incurred, so should be ignored.

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