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CA Final Performance Measurement and Variance Reporting — practice questions

Explore 46 free Performance Measurement and Variance Reporting questions in CA Final Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Performance Measurement and Variance Reporting questions and exercises with answers

Showing questions 1–30 of 46.

On a scorecard, cycle time and yield sit under which perspective?Read the answer and worked solution →Which pair popularised the scorecard in a 1992 article?Read the answer and worked solution →Second-generation scorecards link objectives using which device?Read the answer and worked solution →Third-generation scorecards added which new component?Read the answer and worked solution →A scorecard is best described as which kind of report?Read the answer and worked solution →Under management by exception, which variances reach senior managers?Read the answer and worked solution →If a variance is insignificant, what does management by exception require?Read the answer and worked solution →Which is a stated advantage of management by exception?Read the answer and worked solution →A manager who steps in only after standards fail follows which style?Read the answer and worked solution →An adverse variance means the actual result led to what?Read the answer and worked solution →Adverse variances are commonly marked with which letters?Read the answer and worked solution →Materials cost variance splits into price variance and what?Read the answer and worked solution →Overhead variance splits into spending, efficiency and what?Read the answer and worked solution →Which two variances go beyond the basic price and usage split?Read the answer and worked solution →Variance analysis serves as a tool of what?Read the answer and worked solution →How does variance analysis help management?Read the answer and worked solution →Standard costing compares actual use with standard using what ratios?Read the answer and worked solution →A cost centre manager is accountable for which items?Read the answer and worked solution →Which is a service cost centre?Read the answer and worked solution →Why is a cost centre judged only on cost?Read the answer and worked solution →Unlike NPV, ROI is described as not being what?Read the answer and worked solution →NOPAT is Rs 500,000, capital is Rs 3,000,000, cost of capital 10%. What is EVA?Read the answer and worked solution →ROIC is 14%, WACC is 11% and capital is Rs 2,000,000. What is EVA?Read the answer and worked solution →NOPAT is Rs 240,000 on capital of Rs 1,600,000. What is RONA?Read the answer and worked solution →A division earns Rs 60,000 on investment of Rs 400,000. What is its ROI?Read the answer and worked solution →A division has profit Rs 90,000, capital Rs 600,000, required return 12%. What is residual income?Read the answer and worked solution →X earns Rs 50,000 on capital Rs 250,000; Y earns Rs 72,000 on Rs 400,000. Higher ROI?Read the answer and worked solution →Resources consumed are measured by which indicators?Read the answer and worked solution →Leading indicators are best described as what?Read the answer and worked solution →Inputs set against outputs measure which of these?Read the answer and worked solution →

Worked practice questions

On a scorecard, cycle time and yield sit under which perspective?

  1. Learning and growth
  2. Financial results
  3. Customer view
  4. Internal processes
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Correct answer: D. Internal processes

Cycle time, unit cost and yield measure what the firm must excel at inside its operations.

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Which pair popularised the scorecard in a 1992 article?

  1. Neely and Moullin
  2. Kaplan and Norton
  3. Stewart and Stern
  4. Chandler and Church
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Correct answer: B. Kaplan and Norton

Kaplan and Norton described the design in a 1992 article and followed it with a book in 1996.

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Second-generation scorecards link objectives using which device?

  1. Gantt chart
  2. Pareto chart
  3. Control chart
  4. Strategy map
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Correct answer: D. Strategy map

Objectives are plotted on a strategic linkage model, also called a strategy map, showing cause and effect.

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