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CA Final Strategic Performance Measures — practice questions — page 2

Explore 70 free Strategic Performance Measures 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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Strategic Performance Measures questions and exercises with answers

Showing questions 31–60 of 70.

NOPAT is profit after cash taxes but before what?Read the answer and worked solution →Market value added is the market value of a firm less what?Read the answer and worked solution →Firm value (equity plus debt) is Rs 1,200 crore; capital invested is Rs 950 crore. Find MVA.Read the answer and worked solution →A firm has negative MVA. What has it done?Read the answer and worked solution →MVA is the present value of a series of which figures?Read the answer and worked solution →MVA matches NPV when cash flows are discounted at which rate?Read the answer and worked solution →The numerator of ROCE is which profit measure?Read the answer and worked solution →Capital employed is commonly shown as what?Read the answer and worked solution →EBIT is Rs 36 lakh; total assets Rs 250 lakh; current liabilities Rs 70 lakh. Find ROCE.Read the answer and worked solution →ROACE uses which capital measure?Read the answer and worked solution →With cash flow unchanged, depreciating assets make ROCE do what?Read the answer and worked solution →A company creates value when return on capital exceeds what?Read the answer and worked solution →ROI is the ratio of profit to what?Read the answer and worked solution →Which measure is time-adjusted, unlike ROI?Read the answer and worked solution →Rs 4,00,000 is invested and net profit is Rs 60,000. What is the ROI?Read the answer and worked solution →What does social return on investment (SROI) measure?Read the answer and worked solution →Why can ROI be misleading as a decision tool?Read the answer and worked solution →Annual revenue is which type of indicator?Read the answer and worked solution →Which indicators are predictive drivers of future results?Read the answer and worked solution →Staff hours consumed is an example of which indicator?Read the answer and worked solution →Which point measures quantity, quality and timeliness of goods delivered?Read the answer and worked solution →In the FABRIC principles, what does B stand for?Read the answer and worked solution →Staff chasing the metric at the cost of real quality shows which risk?Read the answer and worked solution →Overuse of lagging quantitative indicators tends to cause what?Read the answer and worked solution →What is benchmarking in business?Read the answer and worked solution →Which three dimensions does benchmarking typically measure?Read the answer and worked solution →Comparing different teams within one company is which benchmarking?Read the answer and worked solution →Which type observes how others compete, often across industries?Read the answer and worked solution →Taking apart a rival's product to find weaknesses is which benchmarking?Read the answer and worked solution →Comparing prices paid for similar resources is which benchmarking?Read the answer and worked solution →

Worked practice questions

NOPAT is profit after cash taxes but before what?

  1. Employee wage costs
  2. Financing costs
  3. Raw material costs
  4. Operating costs
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Correct answer: B. Financing costs

NOPAT counts operating profit after cash taxes but ahead of financing costs and non-cash bookkeeping entries.

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Market value added is the market value of a firm less what?

  1. Capital contributed by investors
  2. Book reserves held by the firm
  3. Net profit earned for the year
  4. Total sales revenue of the year
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Correct answer: A. Capital contributed by investors

MVA is the current market value of the firm minus the capital investors contributed.

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Firm value (equity plus debt) is Rs 1,200 crore; capital invested is Rs 950 crore. Find MVA.

  1. Rs 200 crore
  2. Rs 150 crore
  3. Rs 250 crore
  4. Rs 300 crore
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Correct answer: C. Rs 250 crore

MVA = V - K = 1,200 - 950 = 250 crore.

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