Question 1

Return on assets is an example of a performance measure in the following group

Accepted Answer

Return on assets is a financial metric that measures how efficiently a company is using its assets to generate profit. It falls under the financial perspective of the Balanced Scorecard, which focuses on the financial goals of the organization.

Question 2

Revenue generated per employee is an example of a performance measure in the following group

Accepted Answer

Revenue generated per employee is a financial performance measure, as it indicates the financial efficiency of the organization in utilizing its employees to generate revenue. The financial perspective of the balanced scorecard framework focuses on financial outcomes and measures such as revenue, profitability, and return on investment.

Question 3

Time to introduce new products to market is an example of a performance measure in the following group

Accepted Answer

Time to introduce new products to market is a measure of the internal business process perspective, which focuses on the efficiency and improvement of internal processes for delivering products or services. This measure represents the effectiveness of the company's product development and launch processes, which is critical for sustaining the competitive advantage and meeting customer needs.

Question 4

All companies basically have the same strategy

Accepted Answer

This statement is false. Companies have different strategies depending on their goals, industry, market position, and other factors. The corporate strategy influences the decisions made by managers regarding budgeting, investment, cost control, performance evaluation, and other areas of management accounting. Therefore, it is important to align the management accounting practices with the corporate strategy to support the achievement of the company's objectives.

Question 5

Profit per market segment is an example of a performance measure in the following group

Accepted Answer

Profit per market segment is a financial measure that assesses the profit generated by different market segments, making it a performance measure in the financial perspective of the balanced scorecard.

Question 6

If the MCE is less than 0.1 this means

Accepted Answer

Manufacturing Cycle Efficiency (MCE) is calculated as the value-added time divided by the total cycle time. If MCE is less than 0.1, it means that less than 10% of the total cycle time is spent on value-added activities, implying that more than 90% of the time is spent on non-value-added activities.

Question 7

Ultimately most companies exist to provide financial rewards to owners

Accepted Answer

This statement is true, as the primary goal of most companies is to generate profits and provide financial rewards to their owners. Strategy refers to the long-term planning and decision-making processes that organizations undertake to achieve their goals, while strategic management accounting involves the use of accounting information to support strategic decision-making and performance measurement.

Question 8

Number of customer complaints is an example of a performance measure in the following group

Accepted Answer

Number of customer complaints is a measure that falls under the Customer perspective. This perspective focuses on meeting the needs and requirements of customers, which can be evaluated by measuring customer satisfaction, loyalty, and complaints.

Question 9

Kaplan and Norton introduced four different perspectives from which a company's activity can be evaluated. Which of the following perspectives describes in what processes should we excel to succeed

Accepted Answer

The process perspective focuses on identifying the key processes that a company must excel at to achieve its objectives and deliver on its customer value proposition. It involves analyzing the company's internal processes and identifying ways to improve efficiency, quality, and effectiveness to achieve strategic goals. Therefore, the correct answer is (C) Process perspective.

Question 10

If the MCE is less than 1 then non-value-added time is present in the production process

Accepted Answer

Lean technologies are designed to minimize waste and optimize production processes. By adopting these technologies, companies can reduce non-value-added time, improve efficiency, and boost profitability. Therefore, if the MCE (Manufacturing Cycle Efficiency) is less than 1, it suggests that there might be some non-value-added time present in the production process, which can be addressed by lean technologies.

Question 11

Quality costs is an example of a performance measure in the following group

Accepted Answer

Quality costs fall under the Internal Business Process perspective, as they are directly related to the cost of producing and delivering goods or services, and improving the efficiency and effectiveness of internal processes to reduce such costs.

Question 12

Strategic Management Accounting (SMA) may be defined as the process of provision and analysis of management accounting data about a business and its competitors for the use in developing and monitoring business strategy?

Accepted Answer

The statement correctly defines the concept of Strategic Management Accounting (SMA) as the process of providing and analyzing management accounting data for developing and monitoring business strategies. Strategy refers to a long-term plan of action designed to achieve a particular goal or set of goals. Therefore, the statement is true.

Question 13

Managers should carefully select the performance measures relevant to their business

Accepted Answer

The answer of Managers should carefully select the performance measures...

Question 14

The best possible score for the MCE is

Accepted Answer

The best possible score for the MCE (Multiple Choice Exam) is typically represented as 1, indicating 100% or full marks.

Question 15

The manufacturing cycle efficiency (MCE) is monitored to reduce value-added activities

Accepted Answer

The manufacturing cycle efficiency (MCE) is monitored to reduce non-value-added activities, thereby improving the efficiency of the production process.

Question 16

The Process perspective identifies the processes we should improve to succeed

Accepted Answer

The balanced scorecard is a framework that helps organizations align their strategy with their performance measures. It identifies key performance indicators (KPIs) for financial, customer, internal processes, and learning and growth perspectives. The process perspective is one of the key perspectives in the balanced scorecard framework as it focuses on the processes that should be improved to achieve strategic objectives. Therefore, understanding how the balanced scorecard fits together and how it supports a company's strategy is important.

Question 17

The Financial perspective describes how do we perceive our shareholders

Accepted Answer

The Financial perspective of the Balanced Scorecard specifically focuses on how a company perceives its shareholders by measuring financial metrics such as revenue, profitability, and return on investment. The Balanced Scorecard is a strategic management tool that aligns a company's objectives with its four perspectives: Financial, Customer, Internal Processes, and Learning & Growth. By using a Balanced Scorecard, a company can ensure that its strategy is aligned with its overall organizational goals and that all aspects of the company are working together to achieve success.

Question 18

Time to deliver versus expectations is an example of a performance measure in the following group

Accepted Answer

Time to deliver versus expectations is a measure of how well a company meets its customers' expectations in terms of delivery time, which falls under the customer perspective in the Balanced Scorecard framework. This perspective focuses on how the company is viewed by its customers and how well it is serving their needs.

Question 19

Hours of in-house training per employee is an example of a performance measure in the following group

Accepted Answer

Hours of in-house training per employee is a measure of the Learning and Growth perspective, which focuses on the development of employee skills and knowledge.

Question 20

Product returns as a percentage of sales is an example of a performance measure in the following group:

Accepted Answer

Product returns as a percentage of sales is an indicator of customer satisfaction and loyalty, which falls under the customer perspective of the balanced scorecard.

Quiz 16: The Strategic Management of Costs and Revenues