These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-F of the Syllabus “Performance measurement”.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have learned and finished the entire F2 (MA/FMA) Management Accounting Chapter 15 – Target setting and Syllabus Area Part-F “Performance measurement”.

All the questions are compulsory, so do not skip any.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Target setting
Chapter Number: 15 of the Practice and Exam Kit
Syllabus Area: C – Performance measurement
Questions Type: CBE MCQs
Exam Section Type: Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part F of the Syllabus; Performance measurement of ACCA F2 (MA/FMA) Management Accounting Module.

Time

These multiple-choice questions (MCQs) are not timed, allowing students to solve them without feeling any pressure and to pay proper attention to the questions.

Result

Students can see their result at the end of the Quiz. They can also be able to see the number of correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F2 - Chapter 15 - Part A - MCQs

Course: ACCA - FIA
Subject: F2 (MA/FMA) Management Accounting
Chapter: 15 - Target setting
Syllabus Area: F - Performance measurement
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 16

Which of the following describes the role of strategic objectives?

Day-to-day performance targets related to the organisation's operations

'Middle tier' objectives to facilitate the planning and control of individual functions within the organisation

Long-term objectives for the organisation as a whole

A clear vision of the organisation's reason for existing

2 / 16

Which of the following describes the role of tactical objectives?

A clear vision of the organisation's reason for existing

Day-to-day performance targets related to the organisation's operations

'Middle tier' objectives to facilitate the planning and control of individual functions within the organisation

Long-term objectives for the organisation as a whole

3 / 16

A financial services company benchmarks the performance of its IT department with that of a leading IT outsource company.

What type of benchmarking is the company using?

Strategic

Functional

Internal

Competitive

4 / 16

Which of the following short-term objectives may involve the sacrifice of longer-term objectives?

Reducing training costs
Increasing quality control
Increasing capital expenditure projects

(i) and (ii) only

(ii) and (iii) only

(i), (ii) and (iii)

(i) only

5 / 16

Which of the performance measures in the drop down list below is most likely to be recorded because of government regulations?

6 / 16

A company sells new, high quality motor vehicles in many countries around the world. Half way through the company's current financial year, the global economy unexpectedly goes in to recession.

What impact would the unexpected recession have on performance measurement relating to sales and revenue?

Sales and revenue are likely to increase in the second half of the year and performance should be measured in that context

No impact as a recession is unlikely to impact the sales and revenue of motor vehicles

Sales and revenue are likely to decrease in the second half of the year and performance should be measured in that context

The impact of a recession on the sales of new, high quality motor vehicles cannot be predicted

7 / 16

What is short-termism?

It is when there is a bias towards short term rather than long term performance

It is when organisations sacrifice short term objectives

It is when non-financial performance indicators are used for measurement

It is when managers' performance is measured on long term results

8 / 16

Which of the following BEST explains the relationship between mission statements and performance management?

Mission statements are a marketing tool and have no part to play in performance measurement

Mission statements include detailed performance standards that actual performance can be measured against

Performance measurement involves comparing actual performance against a target and the mission statement represents the organisation's overall target

To be of value, a performance measure must have an obvious link to the mission statement

9 / 16

What is 'short-termism'?

Prioritising short-term results above the organisation's long-term prospects

A belief that senior management have a duty to maximise profit

A legitimate focus on short-term results

A management philosophy linked to TQM

10 / 16

The following statements relate to benchmarking.

Which TWO statements are true?

Benchmarking is essentially a cost cutting exercise

The ultimate aim of benchmarking is to improve performance

Benchmarking must involve competitors to be effective

A danger of benchmarking is that inappropriate comparisons lead to incorrect conclusions

11 / 16

Market conditions and economic conditions can impact on performance measurement.

Which of the following statements are true?

The entry of a new competitor in the market will cause a business to examine sales performance measures more closely
General economic conditions can raise or lower overall demand and supply

(i) is true and (ii) is false

(i) and (ii) are false

(i) and (ii) are true

(i) is false and (ii) is true

12 / 16

In general terms, which of the following elements should organisations include in their mission statements?

Policies and standards of behaviour
Values – a description of the culture, assumptions and beliefs regarded as important to those managing the business
Profitability
Strategy – the commercial logic for the business, defining the nature of the business

(i), (ii) and (iv) only

(iii) and (iv) only

(i) and (ii) only

(ii) and (iv) only

13 / 16

Which of the following are suitable measures of performance at the strategic level?

Machine idle time
Employee sick days
Return on capital employed

(ii) only

(i) and (ii)

(ii) and (iii)

(iii) only

14 / 16

Company A manufactures mobile phones. Staff employed within the Research & Development function at Company A have purchased a mobile phone manufactured by Company B for the purpose of reverse engineering.

What type of benchmarking is Company A using?

Internal

Functional

Strategic

Competitive

15 / 16

In order for a business's strength to have a real benefit, it has to be linked to critical success factors.

What are critical success factors?

Factors necessary to match strengths to opportunities

Factors necessary to build on strengths

Factors fundamental to strategic success

Factors contributing to reduced costs

16 / 16

All of the following, except one, are sound principles for devising objectives in order to enact the corporate mission.

Which is the exception?

They should be specific

They should be observable or measurable

They should be easily achievable

They should relate to a specified time period

Your score is

F2 (MA/FMA) – Chapter 15 – PART F – CBE MCQs – ACCA