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MCQs on Strategic Control
Performance Measurement is the process of assessing the proficiency with which a reporting entity succeeds, by the economic acquisition of resources. Here on MCQs.CLUB we have written easy Multiple-Choice Questions (MCQs) on Strategic Control that fully cover practice questions and quizzes on performance measurement, key performance index (kpi) with examples, types, meaning, techniques, process and definition, measuring organizational performance, strategic control system in strategic management. These MCQs on strategic control management and Performance Measurement are also helpful for competitive exams, professional accountancy exams and business management exams.
- Performance Measurement –
- The process of assessing the proficiency with which a reporting entity succeeds, by the economic acquisition of resources and their efficient and effective development, in achieving its objectives.
- Performance measures may be based on non-financial as well as on financial information.
- Both A&B
- Inflation makes it harder to compare performance over time, as it affects accounting values, and hence measures of performance. It affects base line and comparative figures.
- Capital Projects – involve ‘any long-term commitments of funds undertaken now in anticipation of a potential inflow of funds at some time in the future’.
- Capital expenditure decisions should be based on an evaluation of future cash flows, discounted at an appropriate cost of capital to an NPV.
- Which of the following is correct?
- The basic concept of contribution can be used strategically if questions about strategic factors are examined in its light.
- Contribution Margin is ‘the difference between sales volume and the variable cost of those sales, expressed either in absolute terms or as a contribution per unit’.
- Contribution margins can be used for measuring performance in terms of breakeven analysis.
- All of the above
- A danger with contribution margin analysis is that firms in a competitive industry might be tempted to sell at prices which cover marginal costs, but fail to earn an adequate return on sunk fixed costs.
- The above statement is correct
- The above statement is incorrect
- Contribution margins can be used for measuring performance and as a tool for decision making.