Performance Management MCQ Quiz in తెలుగు - Objective Question with Answer for Performance Management - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

Last updated on Apr 17, 2025

పొందండి Performance Management సమాధానాలు మరియు వివరణాత్మక పరిష్కారాలతో బహుళ ఎంపిక ప్రశ్నలు (MCQ క్విజ్). వీటిని ఉచితంగా డౌన్‌లోడ్ చేసుకోండి Performance Management MCQ క్విజ్ Pdf మరియు బ్యాంకింగ్, SSC, రైల్వే, UPSC, స్టేట్ PSC వంటి మీ రాబోయే పరీక్షల కోసం సిద్ధం చేయండి.

Latest Performance Management MCQ Objective Questions

Top Performance Management MCQ Objective Questions

Performance Management Question 1:

Freddo sells three related products, X, Y and Z. The current period budget and actual sales are:

    Products  
Budget X Y Z
Unit sales 400 260 140
Price $40 $50 $80
Contribution $16 $25 $48
Actual      
Unit sales 450 350 200
Price $36 $55 $90
Contribution $10 $30 $56

What is the sales quantity variance?

  1. $4,905 favourable
  2. $4,910 favourable
  3. $5,930 favourable
  4. $6,560 favourable

Answer (Detailed Solution Below)

Option 1 : $4,905 favourable

Performance Management Question 1 Detailed Solution

The correct option is option 1.

Budgeted sales = 400 + 260 + 140 = 800 units

Actual sales = 450 + 350 + 200 = 1,000 units

Product Actual sales in budgeted mix Budgeted sales Difference Standard contribution Sales quantity variance  
  (units) (units) (units) $ $  
X 500 400 100 16 1,600  
Y 325 260 65 25 1,625  
Z 175 140 35 48 1,680  
  1,000 800 200   4,905 favourable

Actual sales Budgeted mix

A: 1,000 × 400/800 = 500

B: 1,000 × 260/800 = 325

C: 1,000 × 140/800 = 175

Performance Management Question 2:

The standard cost of a 10 litre tin of metal paint is as follows:

  $
5 litres of A @ $6 per litre 30.00
3 litres of B @ $4 per litre 12.00
2 litres of C @ $9 per litre 18.00

During the period, 1,020 tins were produced which required:

5,400 litres of A
3,200 litres of B
1,900 litres of C

What is the materials yield variance for the period?

  1. $700 favourable
  2. $570 adverse
  3. $1,100 adverse
  4. $1,800 adverse

Answer (Detailed Solution Below)

Option 4 : $1,800 adverse

Performance Management Question 2 Detailed Solution

The correct option is option 4.

Standard cost per tin = $30 + $12 + $18 = $60

Actual input = 5,400 + 3,200 + 1,900 = 10,500 litres

  Units  
10,500 litres should yield (10,500/10) 1,050  
Actual output 1,020  
Difference 30 Adverse
  $  
Standard cost per unit 60  
Yield variance 1,800 Adverse

Performance Management Question 3:

A company has a process in which the standard mix for 9 litres of output is as follows:

  $
4.0 litres of D at $9 per litre 36.00
3.5 litres of E at $5 per litre 17.50
2.5 litres of F at $2 per litre 5.00
  58.50
Actual materials used were as follows:  
  $
4,300 litres of D at $9 per litre 38,700
3,600 litres of E at $5.5 per litre 19,800
2,100 litres of F at $2.2 per litre 4,620
  63,120

What is the materials mix variance for the period?

  1. $2,370 favourable

  2. $2,400 favourable

  3. $2,370 adverse
  4. $2,400 adverse

Answer (Detailed Solution Below)

Option 4 : $2,400 adverse

Performance Management Question 3 Detailed Solution

The correct option is option 4.

The materials mix variance for the period was:

  Actual   Standard    
  Q Actual Q Standard Difference cost per Mix
  mix (litres) mix (W) (litres) litre variance ($)
D 4,300 4,000 (300) 9 (2,700)
E 3,600 3,500 (100) 5 (500)
F 2,100 2,500 400 2 800
  10,000 10,000 0   (2,400)

The mix variance is $2,400 adverse

WORKING

D: 10,000 × 4/10 = 4,000

E: 10,000 × 3.5/10 = 3,500

F: 10,000 × 2.5/10 = 2,500

Performance Management Question 4:

The following sales were budgeted for the year:

  Product X Product Y Product Z
Demand (units) 1,000 2,000 3,000
Selling price $15 $20 $30
Profit per unit $2 $5 $2

Actual sales for the year were as follows:

Units sold 1,100 2,050 2,800
Sales value $17,050 $38,950 $86,800
Profit $3,080 $10,455 $6,160

What is the sales mix variance?

  1. $2,292 Adverse
  2. $1,845 Favourable
  3. $200 Favourable
  4. $50 Favourable

Answer (Detailed Solution Below)

Option 3 : $200 Favourable

Performance Management Question 4 Detailed Solution

The correct option is option 3.

  Actual sales Actual sales Difference Standard  
  actual mix standard mix (actual – standard) margin variance
  units units (W) units $ $
X 1,100 991.67 108.33 2 216.66
Y 2,050 1,983.33 66.67 5 333.34
Z 2,800 2,975.00 (175.00) 2 (350.00)
  5,950 5,950 0   200 Favourable

WORKING

X 5,950 × 1/6 = 991.67
Y 5,950 × 2/6 = 1,983.33
Z 5,950 × 3/6 = 2,975

Performance Management Question 5:

An organisation has recorded a favourable labour rate planning variance for the year of $40,000.
On investigation it has discovered that, whilst actual labour rates were $60 per hour, a revised standard rate for labour should have been $70 per hour for the actual hours worked
of 20,000.


What was the original planned labour rate per hour for the year (to the nearest $)?

  1. $72
  2. $76
  3. $68
  4. $ 70

Answer (Detailed Solution Below)

Option 1 : $72

Performance Management Question 5 Detailed Solution

The correct option is option 1.

Additional information:

The planning variance was $40,000 Favourable. This amounts to $2 per hour. 
If the revised standard rate per hour was $70 then, for a favourable variance, the original 
planned rate must have been $2 higher than this. 
The original standard rate per hour must have been $72. 

Performance Management Question 6:

A business advisor had planned to use 3 hours of labour on 700 client services in June.Labour is paid $40 per hour.


In June there were actually 900 services provided. Total labour hours were 3,240 and the actual labour rate was $42 per hour.


The advisor has since discovered that, due to a change in legislation that meant extra client responsibilities, the budget should have provided for 3 ½ hours of labour per service.
What is the adverse planning labour efficiency variance for June (to the nearest $000)?

  1. $ 18,000
  2. $18,500
  3. $ 17,000
  4. $ 19,500

Answer (Detailed Solution Below)

Option 1 : $ 18,000

Performance Management Question 6 Detailed Solution

The correct option is option 1.

Additional information: 

Original standard hours for actual output = 3 hours × 900 services = 2,700 hours

Revised standard hours for actual output = 3.5 hours × 900 services = 3,150 hours

Variance in hours = 2,700 – 3,150 = 450 adverse

Value of the variance = 450 × $40 = $18,000 adverse 

Performance Management Question 7:

 Which of the following are consequences of using ideal standards?

Variance analysis is likely to produce adverse results
Demotivation of staff usually becomes a problem
Allowances for normal efficiency levels are made
Standards can become more useful for long-term targets

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

Answer (Detailed Solution Below)

Option 3 : 1, 2 and 4

Performance Management Question 7 Detailed Solution

The correct option is option 3.

Additional information:

Ideal standards assume perfect operating conditions, with no allowance for wastage or idle time. This is likely to result in adverse variances, therefore (1) is correct. Setting standards at a higher level than is likely to be achieved can demotivate, therefore (2) is correct. Ideal standards can be useful for setting long-term targets as efforts are made to reduce inefficiencies in processes over time, therefore 4 is correct.

(3) is incorrect as it describes an attainable standard.

Performance Management Question 8:

Hurst Co budgeted to produce 16,000 units of a product and sell 15,000 units. There was no opening inventory. The standard cost per unit of the product is as follows:

  $
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.

What was the fixed overhead expenditure variance for the period?

  1. $15,000 adverse
  2. $5,000 adverse
  3. $5,000 favourable
  4. $20,000 favourable

Answer (Detailed Solution Below)

Option 2 : $5,000 adverse

Performance Management Question 8 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 9:

 Which of the following best describes “management by exception”?

  1. Using management reports to highlight exceptionally good performance, so that favourable results can be built upon to improve future outcomes
  2. Sending management reports only to those managers who are able to act on the information contained within the reports
  3. Focusing management reports on areas which require attention and ignoring those which appear to be performing within acceptable limits
  4. Appointing and promoting only exceptional managers to areas of responsibility within the organisation

Answer (Detailed Solution Below)

Option 3 : Focusing management reports on areas which require attention and ignoring those which appear to be performing within acceptable limits

Performance Management Question 9 Detailed Solution

The correct option is option 3.

Focusing management reports on areas which require attention and ignoring those which appear to be performing within acceptable limits

Performance Management Question 10:

The standard raw material cost for a unit of production is 2 kg at $4.00 per kg. Purchases for a period were 13,000 kg at an actual cost of $4.50 per kg. Raw material inventory, which is valued at standard cost, increased by $8,000 in the period. Budgeted production for the period was 6,000 units but actual production was only 5,000 units.

What was the raw material usage variance for the period?

  1. $4,000 adverse
  2. $4,000 favourable
  3. $12,000 adverse
  4. $12,000 favourable

Answer (Detailed Solution Below)

Option 1 : $4,000 adverse

Performance Management Question 10 Detailed Solution

The correct option is option 1.

WORKING

Actual production should have used 10,000 kg (5,000 × 2). Raw material inventory increased by 2,000 kg ($8,000/$4), so 11,000 kg of the 13,000 purchased went into production. The material usage variance is therefore (10,000 kg − 11,000 kg) × $4 = $4,000 Adverse.

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