AICPA Strategic Management & Performance 2

Question 1

A company uses a Balanced Scorecard. Which perspective focuses on employee training and organizational culture?

Accepted Answer

Learning and Growth

Answer

The Learning and Growth perspective addresses human capital, information capital, and organizational capital needed to support strategy.

Question 2

In Porter's Five Forces model, which force is most directly affected when a company's switching costs are very low?

Accepted Answer

Bargaining power of buyers

Answer

Low switching costs increase buyer bargaining power because customers can easily move to competing products or suppliers.

Question 3

Which performance measurement concept involves comparing a company's processes and metrics to best practices in the industry?

Accepted Answer

Benchmarking

Answer

Benchmarking compares a company's performance metrics and practices against industry leaders or best-in-class competitors.

Question 4

A firm pursues a cost leadership strategy. Which activity is most critical to sustaining this strategy?

Accepted Answer

Continuous process improvement to reduce unit costs

Answer

Cost leadership requires ongoing efficiency improvements and process optimization to maintain the lowest-cost position in the industry.

Question 5

Under the Balanced Scorecard framework, a lag indicator in the financial perspective would most likely be:

Accepted Answer

Return on equity

Answer

Return on equity is a financial outcome (lag indicator) that reflects past performance rather than predicting future results.

(AICPA) Association of International Certified Professional Accountants Practice Test