III BCOM PA [ ] Semester VI Core: ADVANCED PERFORMANCE MANAGEMENT - 618C Multiple Choice Questions.

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1 1 of 22 1/21/ :20 PM Dr.G.R.Damodaran College of Science (Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified CRISL rated 'A' (TN) for MBA and MIB Programmes 1. BCG in BCG matrix stands for A. Boston Calmette Group B. British Consulting Group C. Boston Corporate Group D. Boston Consulting Group III BCOM PA [ ] Semester VI Core: ADVANCED PERFORMANCE MANAGEMENT - 618C Multiple Choice Questions. 2. What does Stars symbolize in BCG matrix? A. Introduction B. Growth C. Maturity D. Decline 3. What does Question Mark (?) symbolize in BCG matrix? A. Remain Diversified B. Invest C. Stable D. Liquidate 4. The BCG Matrix is based on A. Industry attractiveness & Business Strength B. Industry Growth rate & Business strength C. Industry Attractiveness & Relative market share D. Industry Growth rate & Relative market share 5. Low cost, Differentiation and Focus are examples of A. Corporate strategies B. Operational Strategies C. Business Strategies D. Functional Strategies 6. In BCG Matrix, what is the label of the Vertical axis? A. Relative Market share

2 2 of 22 1/21/ :20 PM B. Business Strength C. Industry Growth Rate D. Market Growth Rate 7. Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as A. 1. valued relationship B. 2. economic relationship C. 3. direct relationship D. 4. inverse relationship 8. In capital budgeting, positive net present value results in A. negative economic value added B. positive economic value added C. zero economic value added D. percent economic value added 9. First step in calculation of net present value is to find out A. present value of equity B. future value of equity C. present value cash flow D. future value of cash flow 10. Difference between budgeted amounts and actual results is classified as A. standard deviation B. variances C. mean average D. weighted average 11. A budget which mainly covers items of current revenue and expenditure is called. A. Programme budget B. Welfare economics C. Current budgeting D. Capital budgeting 12. Zero based budget is concerned with A. Present B. Past C. Future D. Remote Furure 13. budgeting does not take into account what happened in the past but emphasizes on current activities. A. Formula B. Performance

3 3 of 22 1/21/ :20 PM C. Programme D. Zero-base 14. If opportunity cost per barrel is $45 per unit, incremental cost per barrel is $65, then minimum transfer price will be A. $ 45 B. $ 110 C. $ 20 D. $ Formula to calculate return on investment, according to profitability analysis in DuPont method is A. return on sales * investment turnover B. return on sales + investment turnover C. return on sales - investment turnover D. investment turnover + residual income 16. Sum of all resources used to generate income is classified as A. DuPont investment B. return on investment C. investment D. investment turnover 17. In an accounting measurement, income and investment is divided to calculate A. return on sales B. investment turnover C. residual income D. return on investment 18. Return on investment is also known as A. accrual accounting rate of return B. accounting rate of return C. nominal rate of return D. both a and b 19. Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be A. Negative B. Zero C. Positive D. Independent 20. Flexible budget variance for revenues of company is classified as A. selling price variance B. investment variance

4 4 of 22 1/21/ :20 PM C. profit variance D. primary variance 21. If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be A. $ 87,500 B. $ 97,500 C. $ 67,500 D. $ 57, If actual result is $26000, flexible budget amount is $13000, then flexible budget amount will be A. $ 39,000 B. $ 49,000 C. $ 13,000 D. $ 15, Expand KPI A. Key Performance indicator B. Key Pin Indicator C. Key Parameter indicator D. None of the Above 24. What did S stands for in the term SMART in KPI A. Standard B. Specific C. Strategy D. All the above 25. Benchmarking is the process of identifying in relation to the products (or services) and the processes by which those products (or services) are created and delivered. A. Best Practice B. Strategy C. Planning D. All of the above 26. model looks at the macro-environment and its influence on organisational performance. A. SWOT B. BCG C. PEST D. All of the above 27. The mission and objectives of an organisation need to be developed with the needs of the in mind. A. Shareholders

5 5 of 22 1/21/ :20 PM B. Customers C. Stakeholders D. Investors 28. matrix looks at the level of power and interest of different stakeholder groups. A. Mendelow's B. SWOT C. BCG 29. Expand CSR A. Company secretary responsibility B. corporate strategy responsibility C. corporate social responsibility 30. budget starts with the previous period's budget or actual results, and adds (or subtracts) an incremental amount to cover inflation and other known changes. A. Incremental B. Zero-based C. Rolling D. Fixed 31. Multiple in NFP organisations give rise to multiple objectives. A. Shareholders B. Stakeholders C. Management D. Effort 32. A table is a chart or list which compares one organisation with another by ranking them in order of ability or achievement. A. pivot B. league C. Share D. Profit 33. Benchmarking is often a measuring exercise, not a exercise. A. Measurement B. Management C. Learning D. Practical 34. A target represents the level of performance that the organisation aims to achieve for a particular activity.

6 6 of 22 1/21/ :20 PM A. Performance B. Achievable C. Vision D. Perfect 35. Non-financial performance indicators (NFPIs) will reflect the viability and health of the organisation. A. Short-term B. Medium-term C. Long-term D. All the above 36. NFPIs may focus on areas such as A. customer awareness and consumer opinions B. Consumer, Customer, Competitor C. Stakeholders 37. Balanced Score card was designed by A. Kaplan B. Alfred Marshall C. Kaplan and Norton D. Maslow 38. was designed to be used as strategic performance measurement and management framework. A. Balanced Score Card B. Score Report C. Benchmarking D. FIFO 39. is an indicator of the strength of a products place in the customers minds. A. Branding B. Profitability C. Marketability D. Brand Awareness 40. was developed as an extension to the balanced scorecard. A. NPFI B. Strategy mapping C. Benchmarking D. Brand building 41. suggests that the performance measurement system should be based on the three building blocks of dimensions, standards and rewards.

7 7 of 22 1/21/ :20 PM A. Strategy mapping B. Benchmarking C. Brand building D. Building Block Model 42. The dimensions in building block model are the for the business. A. NPI B. KPI C. CSF D. IRR 43. The, developed by Lynch and Cross, includes a hierarchy of financial and non-financial performance measures. A. Performance pyramid B. Performance report C. Balanced Score card D. Building Block 44. The pyramid shape is to emphasise that the measures from the operational up to the strategic levels should support the. A. Aim B. Corporate vision C. Objectives D. Values 45. Expand SBU A. Structural Business unit B. Strategic Business Unit C. Strength Beyond Unity 46. is the use of a yardstick to compare performance A. Building block B. Benchmarking C. Score card D. SBU 47. Failing to adapt to changes in the environment may cause A. complacency B. risk-averse decision making C. limited mental models. D. All of these 48. model addressed some of the problems associated with the Z score model.

8 8 of 22 1/21/ :20 PM A. Z score B. Performance analysis score C. ZETA model D. H score model 49. model developed their own version of the Z score model based on a combination of four ratios. A. Taffler and Tishaw's model B. Performance analysis score C. ZETA model D. H score Model 50. is more sophisticated model that combines key ratios into a single discriminate score. A. Z score B. Performance analysis score C. ZETA model D. H score Model 51. A budget is one that is kept continuously up to date by adding another accounting period (e.g. month or quarter) when the earliest accounting period has expired. A. Incremental B. Zero based C. Rolling D. Fixed 52. Expand ABM A. Activity Based Method B. Action Budget Method C. Activity based management D. None of the above 53. a separate business entity whose shares are owned by two or more business entities. A. Joint Venture B. Consignment C. Partnership D. All the Above 54. There are two frameworks for understanding integrated processes and the linkages within them: Porters value chain model and. A. Porters generic strategy B. BCG C. McKinsey 7S model D. SWOT

9 9 of 22 1/21/ :20 PM 55. According to McKinseys 7S model, there are three hard elements of business behaviour A. System,Strategy, Selection B. strategy, Structure, System C. None of these D. Both a and b 56. is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. Improved customer satisfaction is often the primary aim. A. BPR B. ABC C. Rolling 57. (MIS) converts internal and external data into useful information. A. Management Information system B. Management Internal System C. Major Information Structure D. Management Internal Structure 58. is a private, secure extension of an Intranet A. Extranet B. Internet C. LAN D. WAN 59. is a global system of interconnected networks carrying a vast array of information and resources A. Extranet B. Internet C. LAN D. WAN 60. An is an example of a unified database of corporate information. A. Enterprise resource planning system B. customer relationship management C. supply chain management D. Radio frequency identification 61. The information provided must match the purpose of the report. A. Performance B. Financial C. Non-Financial D. Monetary

10 10 of 22 1/21/ :20 PM 62. The benefit of having the information must be greater than the of providing it A. Finance B. Cost C. Value D. All of these 63. information is information that cannot normally be expressed in numerical terms. A. Quantitative B. Fixed C. Flexible D. Qualitative 64. includes the recruitment of employees, the development of policies relating to human resources A. BRM B. HRM C. Report 65. The target fixed for the employees should be A. Achievable B. Controllable C. Relevant D. All of these 66. Vrooms expectancy model is stated as: A. Force = valence A~ expectancy B. Force = valence x expectancy C. Force = valence x motivation 67. stated that peoples wants and needs follow a hierarchy. A. Peter Drucker B. Marshall C. Maslow D. Einstein 68. Expand MIRR A. Model internal rate of return B. Modified Internal rate of return C. Management internal rate of return 69. Shareholders are generally concerned with the

11 11 of 22 1/21/ :20 PM A. Current earnings B. Future earning C. Dividend policy D. All of these 70. Expand VBM A. Value based Management B. Vision based Management C. Victory basis management 71. Also considers selling, distribution and admin costs, so indicates whether gross profit is sufficient to cover wider costs. A. Gross Profit B. Net Profit C. Operating Profit D. Management Profit 72. is a measure of the profit attributable to each ordinary share. A. EPS B. ROCE C. IRR D. Profit 73. is earnings before interest, tax, depreciation, amortisation and writeoffs (such as goodwill). A. EBIT B. GP C. EBITDA D. EAT 74. ratios measure the ability of the company to meet its short-term obligations A. Liquidity ratios B. Profitability Ratio C. Operating Ratio D. Solvency ratio 75. ratios measure the ability of the company to meet its long-term liabilities A. Risk ratio B. Liquidity ratios C. Operating Ratio D. Solvency ratio 76. is the present value (PV) of all cash inflows less the PV of all cash outflows of a project. A. IRR

12 12 of 22 1/21/ :20 PM B. ARR C. NPV D. ROCE 77. The Decision rule for NPV is any project that generates a NPV is viable A. Negative B. More than 1 C. Less than 1 D. Positive 78. The represents the actual return generated by a project. A. MIRR B. IRR C. ARR D. ROCE 79. The project should be accepted if the MIRR is than the firm's cost of capital. A. Lesser B. Greater C. Positive D. Negative 80. Expand RI A. Residual Income B. Return on Investment C. Residual Investment D. Return on Income 81. is the divisional equivalent of ROCE. A. EBIT B. EBITDA C. ROI D. RI 82. The problems of dysfunctional behaviour and holding onto old assets can be addressed by using residual income (RI) to appraise. A. Divisional performance B. Performance C. Value management 83. EVA is a measure of performance similar to. A. Net Profit B. Residual Income

13 13 of 22 1/21/ :20 PM C. Return on Investment D. ROCE 84. VBM begins from the view that the value of a company is measured by its. A. Cash flow B. Discounted cash flow C. Net Operating income D. Operating profit 85. Expand MVA A. Management Value added B. Market value added C. Manage Vision Aid 86. A MVA means value has been added. A. Negative B. Positive C. Neutral D A MVA means value has been destroyed. A. Negative B. Positive C. Neutral D The is the price at which goods or services are transferred from one division to another within the same organisation. A. Market Price B. Retail Price C. Transfer Price D. Buying Price 89. Expand VFM A. Value for Money B. Value for Market C. Value for Management 90. The 3E of VFM is A. economy, efficiency and effectiveness B. economy, effort and effect C. economy, enemy and effort

14 14 of 22 1/21/ :20 PM D. efficacy, efficiency and effectiveness 91. The most notable model is Argenti's A score model. A. Quantitative B. Qualitative C. Balanced D. Problematic 92. Expand QMS A. Quantity Management System B. Quest maintenance system C. Quality Management System D. Quality Maintenance System 93. The adoption of a QMS results in A. Quantity standards B. Brand image C. Market share D. minimise the overall costs of quality 94. Kaizen is a term for the philosophy of continuous improvement in performance via small, incremental steps A. Japanese B. Greek C. French D. Latin 95. The focus costing is on eliminating waste, improving processes and systems and improving productivity. A. Kaplan B. Kaizen C. Standard D. Target 96. costing is the opposite of conventional cost-plus pricing A. Kaplan B. Kaizen C. Standard D. Target 97. Total Quality Management (TQM) is a philosophy of quality management that originated in Japan in the. A B. 1960

15 15 of 22 1/21/ :20 PM C D Prevention of errors before they occur is the main aim of A. Quality standards B. Target Costing C. TQM D. KPI 99. Just-in-time (JIT) is a demand-pull system of ordering from suppliers which aims to reduce inventory levels to. A. Maximum B. Zero C. Minimum D. Optimum 100. Six Sigma is a quality management programme that was pioneered by Motorola in the. A B C D The model suggests that there are three connected areas that indicate likelyfailure; defects, mistakes made and symptoms of failure. A. Argenti's A Score B. ZETA model C. H score model D. Six Sigma 102. The quality standards have been adopted by many organisations. A. ISO 2000 B. ISO 2001 C. ISO Expand ISO. A. International Standard Organisation B. International Organisation for Standardisation C. Indian Standard organization 104. The sigma stands for the. A. Strategy B. Standard

16 16 of 22 1/21/ :20 PM C. Standard Deviation D. Sigma 105. is a philosophy of management based on cutting out waste and unnecessary activities. A. TQM B. Standard Production C. Target Production D. Lean Production 106. is closely related to quality practices such as Kaizen, JIT and TQM. A. TQM B. Standard Production C. Target Production D. Lean Production 107. Who is the pioneer of Lean Production? A. Toyota B. Ford C. Tata D. None 108. What is SDLC? A. System Development Life Cycle B. Standard Development Life Cycle C. Strategy Development Life Cycle 109. costs which are generally hidden in overheads. A. Quality cost B. Environment driven cost C. Standard cost D. Average Cost 110. considers the costs and revenues of a product over its whole life ratherthan one accounting period. A. ABC cost B. Environment driven cost C. Standard cost D. Life cycle Cost 111. technique looks at material flows and material losses incurred at various stages of production A. ABC B. Flow chart cost C. Environment driven cost

17 17 of 22 1/21/ :20 PM D. Life cycle Cost 112. An approach in which company under-costs it's one product and over-costs at least one product is classified as A. service-cost across subsidizing B. product-price cross subsidizing C. product-cost cross subsidizing D. product cross subsidizing 113. In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as A. different task B. purpose cost C. an activity D. an allocation cost 114. Costs of all activities for individual products or services can be called A. purpose level costs B. output-unit level costs C. input-unit level costs D. activity level costs 115. In an activity based costing implementation, product's diverse demand is based on A. batch size B. complexity C. process steps D. all of the above 116. Expand CSF A. Critical Success factor B. Critical Strategy Factor C. Company Success factor 117. Expand IR A. Internal Report B. Integrated Report C. Integrated Reporting 118. The most commonly accepted Global Reporting Initiative is A. G5 B. G6 C. G4

18 18 of 22 1/21/ :20 PM D. All of these 119. The International Integrated Reporting Council is formed in. A. August 2010 B. August 2009 C. June 2010 D. June form of capital can be described as the value of a company. A. Financial Capital B. Manufacturing Capital C. Intellectual Capital D. Human Capital 121. The stronger each of the five forces in Porter model. lower the of the industry A. Cash B. Profitability C. Sales D. Liquidity 122. looks at the balance between government income and expenditure. A. Fiscal Policy B. Monetary Policy C. Finance Policy 123. is the process by which the government and central bank controls the supply of money. A. Fiscal Policy B. Monetary Policy C. Finance Policy 124. is the cost of production experienced by society but not by the producer. A. Risk B. Externality C. Green Policy D. Uncertainity 125. is the variability of possible returns. A. Risk B. Externality C. Green Policy D. Uncertainity

19 19 of 22 1/21/ :20 PM 126. is the average return that will be made if a decision is repeated again and again. A. Maximin B. Maximax C. Expected Values 127. regret looks at the maximum regret for each course of action. A. Maximin B. Minimax C. Maximax D. All of these 128. Maximin is used by decision makers who are. A. risk seeking B. risk averse C. loser D. sore loser 129. Venture Capitalist are likely to be rational investors seeking the maximum return from. A. maximum risk B. minimum risk C. no risk D. less risk 130. A is a quantitative plan prepared for a specific period. A. Budget B. EPS C. Investment D. Cost sheet 131. Managers can use of Mendelow matrix to help manage conflicting demand and to establish priority. A. Shareholder B. Competitors C. Stakeholders D. All the above 132. A budget starts with the previous periods budget or result. A. Fixed B. Incremental C. Flexible D. Zero

20 20 of 22 1/21/ :20 PM 133. Activity based budgeting consist of and. A. ABC, ABM B. ABC, ROI C. VBM, ABC D. ABM, VBM 134. What is OAR in ABC analysis? A. Overhead Accurate Rate B. Overhead Absorption Rate C. Overhead Allocation Rate 135. What are the two types of ABM? A. Strategic, Structural B. Structural, Operational C. Operational, Strategic D. None of the above 136. is a system of accounting based upon the identification of individual parts of a business which are the responsibility of a single manager. A. Response Accounting B. Responsibility Accounting C. Strategy Accounting D. All the above 137. The value chain model is based around rather than traditional functional departments. A. activities B. action C. strategy 138. In Mckinsey model there are hard elements. A. 4 B. 3 C. 5 D In Mckinsey model there are SOFT elements. A. 4 B. 3 C. 5 D The benefit of management information must exceed the of obtaining the information.

21 21 of 22 1/21/ :20 PM A. element B. cost C. proportion 141. is used to extract data from database to meet the individual users needs. A. Database B. Decision support system C. Data extraction tool D. Data warehouse 142. Most organisations connect their computers together in enabling them to share data and to share printers A. MAN B. WAN C. LAN D. Internet 143. is the private, secure extension of an Intranet. A. Internet B. Extranet C. Network D. Database 144. Extremely large collections of data that may be analysed to reveal patterns, trends and associations is called as A. Database B. Data warehouse C. Huge Data D. Big Data 145. The process of big data is known as A. big data analysis B. big data system C. big data analytics 146. The of the report needs to help the user to quickly understand the organisations result. A. Structure B. System C. Layout D. Big data 147. The Primary objective of Profit- seeking organisation is to

22 22 of 22 1/21/ :20 PM A. Maximise Shareholders Wealth B. Minimise Shareholders Wealth C. Maximise Profit 148. is the return shareholders receive both in dividends and capital growth. A. Total Share value B. Total Shareholder Return C. EPS D. ROI 149. There will be always little correlation between TSR and. A. ROCE B. ROI C. EPS D. EBIT 150. A ROCE is desirable. A. Low B. Less C. High D. Equal Staff Name L.A.RAZIA FATHIMA.