CGA CGA Performance Management & Analytics 1

Question 1

A balanced scorecard measures organizational performance across how many perspectives?

Accepted Answer

Four

Answer

Kaplan and Norton's balanced scorecard framework evaluates performance across four perspectives: financial, customer, internal processes, and learning & growth.

Question 2

Which type of variance measures the difference between actual hours worked and standard hours allowed, multiplied by the standard labor rate?

Accepted Answer

Labor efficiency variance

Answer

The labor efficiency variance compares actual hours used to the standard hours that should have been used, valued at the standard rate.

Question 3

What is a key performance indicator (KPI)?

Accepted Answer

A quantifiable measure used to evaluate progress toward critical business objectives

Answer

KPIs are specific, measurable metrics that organizations use to track and assess progress toward defined strategic and operational goals.

Question 4

Which cost concept distinguishes between costs that change with production volume and costs that remain fixed?

Accepted Answer

Variable vs. fixed costs

Answer

Variable costs change proportionally with output (e.g., direct materials), while fixed costs remain constant regardless of production volume (e.g., rent).

Question 5

A company has a contribution margin ratio of 40% and fixed costs of $200,000. What is the breakeven point in sales dollars?

Accepted Answer

$500,000

Answer

Breakeven sales = Fixed costs ÷ Contribution margin ratio = $200,000 ÷ 0.40 = $500,000.

(CGA) Certified General Accountant Practice Test

(CGA) Certified General Accountant Practice Test

CGA CGA Performance Management & Analytics 1