Question 1

The main difference between operational and strategic performance measures is that strategic measures focus on:

Accepted Answer

A)  Financial performance 
B)  Implementation of strategy 
C)  Control rather than learning 
D)  A balance between financial and non-financial measures. 
A)  Financial performance 
B)  Implementation of strategy 
C)  Control rather than learning 
D)  A balance between financial and non-financial measures. B

Question 2

Management control can best be described as:

Accepted Answer

A)  A system of financial and management accounting 
B)  A balance between financial and non-financial performance measurement 
C)  The process of achieving organizational goals in a changing environment 
D)  A sophisticated computer system based on an organization's predictive model. 
A)  A system of financial and management accounting 
B)  A balance between financial and non-financial performance measurement 
C)  The process of achieving organizational goals in a changing environment 
D)  A sophisticated computer system based on an organization's predictive model. C

Question 3

Kaplan & Norton suggested that the number of high level performance measures that managers should include in their Balanced Scorecard should be:

Accepted Answer

A)  Four 
B)  12-16 
C)  Hundreds 
D)  No number specified. 
A)  Four 
B)  12-16 
C)  Hundreds 
D)  No number specified. B

Question 4

One of the criticisms of the Balanced Scorecard approach is the:

Accepted Answer

A)  Absence of unambiguous organizational goals 
B)  Ability to accurately measure non-financial performance 
C)  Assumption of accurate cause-effect relationships 
D)  Number of performance measures to be monitored 
A)  Absence of unambiguous organizational goals 
B)  Ability to accurately measure non-financial performance 
C)  Assumption of accurate cause-effect relationships 
D)  Number of performance measures to be monitored

Question 5

The process by which results are compared with plan, with variations leading to corrective action is termed:

Accepted Answer

A)  Performance gap 
B)  Feedback 
C)  Feedforward 
D)  Budgeting 
A)  Performance gap 
B)  Feedback 
C)  Feedforward 
D)  Budgeting

Question 6

The four perspectives in Kaplan & Norton's Balanced Scorecard are:

Accepted Answer

A)  Financial, customer, strategic, operations 
B)  Strategic, customer, financial, non-financial 
C)  Financial, customer, business process, learning and growth 
D)  Financial, business process, quality, delivery. 
A)  Financial, customer, strategic, operations 
B)  Strategic, customer, financial, non-financial 
C)  Financial, customer, business process, learning and growth 
D)  Financial, business process, quality, delivery.

Question 7

The main difference between Kaplan and Norton's Balanced Scorecard and Cranfield University's Performance Prism is the inclusion in the Performance Prism of:

Accepted Answer

A)  Stability 
B)  Shareholders 
C)  Stakeholders 
D)  Learning. 
A)  Stability 
B)  Shareholders 
C)  Stakeholders 
D)  Learning.

Question 8

A predictive model is best described as:

Accepted Answer

A)  The organization's budget for the year 
B)  The organization's strategy for the next 3-5 years 
C)  The action-outcome relationships to meet the organization's competition 
D)  The cause-effect relationships to meet the organization's strategy and competitive environment. 
A)  The organization's budget for the year 
B)  The organization's strategy for the next 3-5 years 
C)  The action-outcome relationships to meet the organization's competition 
D)  The cause-effect relationships to meet the organization's strategy and competitive environment.

Question 9

A strategy map for an organization would include:

Accepted Answer

A)  The cause-effect relationships and performance targets for each element in the strategy map 
B)  Ongoing monitoring and review of performance 
C)  Resource reallocations through changed budgets where performance does not meet expectations 
D)  All of the above 
A)  The cause-effect relationships and performance targets for each element in the strategy map 
B)  Ongoing monitoring and review of performance 
C)  Resource reallocations through changed budgets where performance does not meet expectations 
D)  All of the above

Question 10

A cybernetic control system requires:

Accepted Answer

A)  The ability to predict the effect of potential control actions 
B)  Previous time periods as a comparator 
C)  A thermostat 
D)  A communication network to transmit information. 
A)  The ability to predict the effect of potential control actions 
B)  Previous time periods as a comparator 
C)  A thermostat 
D)  A communication network to transmit information.

Question 11

Which of the following may be elements of a management control system:

Accepted Answer

A)  Budgets, strategic plans, and performance measures 
B)  Incentives, targets, and information feedback loops 
C)  Supervision, recruitment, and socialization 
D)  All of the above. 
A)  Budgets, strategic plans, and performance measures 
B)  Incentives, targets, and information feedback loops 
C)  Supervision, recruitment, and socialization 
D)  All of the above.

Question 12

Non-financial performance measures are more likely to be:

Accepted Answer

A)  Leading indicators 
B)  Lagging indicators 
C)  Short-term indicators 
D)  Long-term indicators. 
A)  Leading indicators 
B)  Lagging indicators 
C)  Short-term indicators 
D)  Long-term indicators.

The main difference between operational and strategic performance measures is that strategic measures focus on:

Management control can best be described as:

Kaplan & Norton suggested that the number of high level performance measures that managers should include in their Balanced Scorecard should be:

One of the criticisms of the Balanced Scorecard approach is the:

The process by which results are compared with plan, with variations leading to corrective action is termed:

The four perspectives in Kaplan & Norton's Balanced Scorecard are:

The main difference between Kaplan and Norton's Balanced Scorecard and Cranfield University's Performance Prism is the inclusion in the Performance Prism of:

A predictive model is best described as:

A strategy map for an organization would include:

A cybernetic control system requires:

Which of the following may be elements of a management control system:

Non-financial performance measures are more likely to be:

Introduction to Accounting

Accounting and Its Relationship to Shareholder Value and Corporate Governance

Recording Financial Transactions and the Principles of Accounting

Interpretive and Critical Perspectives on Accounting and Decision Making

Constructing Financial Statements: IFRS and the Framework of Accounting

Interpreting Financial Statements

Accounting for Inventory

Accounting and Information Systems

Marketing Decisions

Introduction to Accounting

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Exam 4: Management Control, Accounting, and Its Rationaleconomic Assumptions

The main difference between operational and strategic performance measures is that strategic measures focus on:

Management control can best be described as:

Kaplan & Norton suggested that the number of high level performance measures that managers should include in their Balanced Scorecard should be:

One of the criticisms of the Balanced Scorecard approach is the:

The process by which results are compared with plan, with variations leading to corrective action is termed:

The four perspectives in Kaplan & Norton's Balanced Scorecard are:

The main difference between Kaplan and Norton's Balanced Scorecard and Cranfield University's Performance Prism is the inclusion in the Performance Prism of:

A predictive model is best described as:

A strategy map for an organization would include:

A cybernetic control system requires:

Which of the following may be elements of a management control system:

Non-financial performance measures are more likely to be:

Introduction to Accounting

Accounting and Its Relationship to Shareholder Value and Corporate Governance

Recording Financial Transactions and the Principles of Accounting

Interpretive and Critical Perspectives on Accounting and Decision Making

Constructing Financial Statements: IFRS and the Framework of Accounting

Interpreting Financial Statements

Accounting for Inventory

Accounting and Information Systems

Marketing Decisions

Introduction to Accounting

Filters