ACCA Advanced Performance Management 2

Question 1

Which element of the Balanced Scorecard captures metrics such as employee training hours and innovation rates?

Accepted Answer

Learning and growth perspective

Answer

The learning and growth perspective focuses on organizational capacity, including employee skills, knowledge systems, and innovation.

Question 2

A company uses a transfer price equal to marginal cost plus a fixed fee. Which transfer pricing method does this represent?

Accepted Answer

Two-part tariff

Answer

A two-part tariff charges the buying division marginal cost per unit plus a fixed fee to allow the selling division to recover fixed costs and earn a profit.

Question 3

In Beyond Budgeting, which of the following BEST describes the role of targets?

Accepted Answer

Relative targets benchmarked against external competitors or peers

Answer

Beyond Budgeting replaces fixed internal targets with relative benchmarks against peers or competitors to promote adaptive, dynamic performance.

Question 4

Porter's Value Chain divides firm activities into primary and support activities. Which of the following is a PRIMARY activity?

Accepted Answer

Outbound logistics

Answer

Outbound logistics — activities related to collecting, storing, and distributing outputs — is one of the five primary activities in Porter's Value Chain.

Question 5

Which performance measure calculates the percentage of a company's total available capacity that is actively used in production?

Accepted Answer

Capacity utilization rate

Answer

Capacity utilization rate measures actual output as a proportion of maximum potential output, indicating how effectively capacity is deployed.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Advanced Performance Management 2