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CA Final Performance Measurement and Variance Reporting — practice questions — page 2

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 31–46 of 46.

What risk arises when staff work only to hit KPI figures?Read the answer and worked solution →The Performance Prism looks beyond shareholders to whom?Read the answer and worked solution →OEE equals availability times performance times what?Read the answer and worked solution →Availability is 90%, performance 80%, quality 95%. What is OEE?Read the answer and worked solution →A machine ran 18 hours of a 24-hour day. What is availability?Read the answer and worked solution →A machine made 1,000 parts, of which 940 were good. What is quality?Read the answer and worked solution →Compared with financial accounting, management accounting is mainly what?Read the answer and worked solution →Who normally uses management accounting information?Read the answer and worked solution →Neely et al. define performance measurement as quantifying what?Read the answer and worked solution →Variable cost is $300 per coach, fixed cost $1,000 a month. Full unit cost at 100 coaches?Read the answer and worked solution →2,000 kg bought at Rs 52 against a standard Rs 50 per kg. Price variance?Read the answer and worked solution →Standard 1,800 kg allowed, 1,900 kg used, standard Rs 20 per kg. Usage variance?Read the answer and worked solution →Variable overhead of Rs 12,600 for 1,000 hours; standard Rs 12 per hour. Spending variance?Read the answer and worked solution →Standard cost allowed is Rs 60,000 and actual material cost is Rs 63,500. Total variance?Read the answer and worked solution →Budgeted sales were Rs 500,000 and actual sales Rs 540,000. The variance is?Read the answer and worked solution →Standard 500 kg, used 480 kg, standard price Rs 40. Usage variance?Read the answer and worked solution →

Worked practice questions

What risk arises when staff work only to hit KPI figures?

  1. Faster reporting
  2. Stronger controls
  3. Lower data volume
  4. Perverse incentives
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Correct answer: D. Perverse incentives

Working to the specific measure can hurt the real quality or value of the work.

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The Performance Prism looks beyond shareholders to whom?

  1. Tax regulators
  2. Statutory auditors
  3. Bank lenders
  4. All stakeholders
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Correct answer: D. All stakeholders

It weighs the needs and contributions of all stakeholders, not just shareholders and customers.

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OEE equals availability times performance times what?

  1. Utilisation
  2. Unit cost
  3. Quality
  4. Capacity
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Correct answer: C. Quality

Overall equipment effectiveness multiplies availability, performance and quality.

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More Cost and Management Accounting topics

Specialist Cost Management TechniquesCost Volume Profit Analysis and Pricing DecisionsActivity-Based Costing and ManagementStrategic Performance MeasuresLean Manufacturing and KaizenIntroduction to Strategic Cost ManagementTotal Quality ManagementStrategic Performance Management