Chapter 16 Multiple-choice questions

* not completed

. Which best describes the difference between mission and strategy?

The mission sets goals for the board of directors while the strategy sets targets for managers. correct incorrect

The mission includes objectives for the next five years whereas the strategy sets them out for just the year ahead. correct incorrect

Mission sets the vision of a business while strategy sets out the plan to achieve the mission. correct incorrect

The mission describes the business plan in words while the strategy sets it out in numbers. correct incorrect

* not completed

. Which best describes the process of benchmarking?

Comparison of actual performance with budget correct incorrect

Comparison of the costs of one product with another correct incorrect

Comparison of direct competitors' performance correct incorrect

Comparison of the performance of one operation or business with another correct incorrect

* not completed

. In which of the four perspectives of a balanced scorecard would Return on Capital Employed (ROCE) be likely to appear?

Financial correct incorrect

Customer correct incorrect

Internal processes correct incorrect

Learning and growth correct incorrect

* not completed

. In which of the four perspectives of a balanced scorecard is the objective 'reduce staff turnover' mostly likely to be?

Financial correct incorrect

Customer correct incorrect

Internal processes correct incorrect

Learning and growth correct incorrect

* not completed

. What is a lagging performance indicator?

An indicator that can anticipate future performance correct incorrect

Delayed reporting of performance correct incorrect

An indicator that highlights past performance correct incorrect

An indicator that depends on another performance measure correct incorrect

* not completed

. What is 'strategy mapping' in the balanced scorecard?

Identifying causal links between the four perspectives correct incorrect

Mapping the business' processes correct incorrect

Setting the mission correct incorrect

Agreeing the strategy with the director of the business correct incorrect

* not completed

. If a business reports on the number of products not made to a sufficiently high quality, what kind of measure is this?

A qualitative measure correct incorrect

A quantitative measure correct incorrect

Neither a qualitative measure nor a quantitative measure correct incorrect

Both a qualitative measure and a quantitative measure correct incorrect

* not completed

. Which costing system is often used to calculate customer profitability?

Absorption costing correct incorrect

Marginal costing correct incorrect

Activity-based costing correct incorrect

Variable costing correct incorrect

* not completed

. Which costing systems can often be used to calculate product profitability?

Absorption and activity-based costing correct incorrect

Marginal and variable costing correct incorrect

Activity-based and marginal costing correct incorrect

Variable and absorption costing correct incorrect

* not completed

. Which of the following are the principles in the Code of Ethics set out by the International Federations of Accountants.

Integrity, objectivity, confidentiality and professional competence correct incorrect

Integrity, objectivity, professional competence, confidentiality and professional behaviour. correct incorrect

Integrity, objectivity, confidentiality and professional behaviour correct incorrect

Integrity, objectivity, professional competence and confidentiality correct incorrect