CGA Performance Management & Analytics Flashcards
6 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CGA Performance Management & Analytics flashcards as text
A balanced scorecard measures organizational performance across how many perspectives?
Answer: Four
Kaplan and Norton's balanced scorecard framework evaluates performance across four perspectives: financial, customer, internal processes, and learning & growth.
Which type of variance measures the difference between actual hours worked and standard hours allowed, multiplied by the standard labor rate?
Answer: Labor efficiency variance
The labor efficiency variance compares actual hours used to the standard hours that should have been used, valued at the standard rate.
What is a key performance indicator (KPI)?
Answer: A quantifiable measure used to evaluate progress toward critical business objectives
KPIs are specific, measurable metrics that organizations use to track and assess progress toward defined strategic and operational goals.
Which cost concept distinguishes between costs that change with production volume and costs that remain fixed?
Answer: Variable vs. fixed costs
Variable costs change proportionally with output (e.g., direct materials), while fixed costs remain constant regardless of production volume (e.g., rent).
A company has a contribution margin ratio of 40% and fixed costs of $200,000. What is the breakeven point in sales dollars?
Answer: $500,000
Breakeven sales = Fixed costs ÷ Contribution margin ratio = $200,000 ÷ 0.40 = $500,000.
What does Economic Value Added (EVA) measure?
Answer: The value created above and beyond the required return on capital
EVA = Net Operating Profit After Tax − (Capital Invested × Cost of Capital), measuring the true economic profit after accounting for the cost of all capital deployed.