Performance Management MCQ Quiz in తెలుగు - Objective Question with Answer for Performance Management - ముఫ్త్ [PDF] డౌన్లోడ్ కరెన్
Last updated on Apr 17, 2025
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?
Answer (Detailed Solution Below)
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?
Answer (Detailed Solution Below)
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 $2.2 per litre | 4,620 |
63,120 |
What is the materials mix variance for the period?
Answer (Detailed Solution Below)
Performance Management Question 3 Detailed Solution
The correct option is option 4.
The materials mix variance for the period was:
Actual | Standard | ||||
Q Actual | Q Standard | Difference | cost per | Mix | |
mix (litres) | mix (W) | (litres) | litre | variance ($) | |
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?
Answer (Detailed Solution Below)
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 $)?
Answer (Detailed Solution Below)
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)?
Answer (Detailed Solution Below)
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
Answer (Detailed Solution Below)
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?
Answer (Detailed Solution Below)
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”?
Answer (Detailed Solution Below)
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?
Answer (Detailed Solution Below)
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.