MCQs EPM

DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
MCQs
Course Name: Enterprise Performance Management

Course Code: 401
Sr. Question Answer

No.
1 For the board of directors of the company, the entire company is a ----------- C
a. Profit centre
b. Expense centre
c. Responsibility centre
d. None of the above
2 ---------- is a monetary measurement of the number of resources used by a B.

responsibility centre.
a. Sale
b. Cost
c. Revenue
d. Profit
3 Which of the following is used for performance measurement in absolute D.

sense?
a. Efficiency
b. Effectiveness
c. Both efficiency and effectiveness
4 Efficiency is the ratio of -------------. A.

a. Output to input
b. Input to output
c. Sales to cost
d. Cost to sales
5 Classification of responsibility centre is based on the nature of the monetary --- A.

------------.
a. Inputs and/or outputs
b. Inputs and outputs
c. Inputs only
d. Outputs only
6 In case of a manufacturing function the optimal relationship is established in B.

terms of input and output as-
a. Input in cost and output in cost
b. Input in cost and output in physical units.
c. Input in physical units and output in revenue
d. All of the above
Dr. Varsha Goyal www.dimr.edu.in

7 A marketing function is an example of B.

a. Expense centre
b. Revenue centre
c. Profit centre
d. Discretionary expense centre
8 The criterion for a responsibility centre to be an investment centre is ------- B.

a. Input should be related to capital employed
b. Both input and output should be related to capital employed
c. Output should be related to quality aspect
d. Output is related to capital employed
9 In case of revenue centre the output is measured in --------- terms, but no formal C.
attempt is made to relate --------------------.
a. Physical, quantity and quality
b. Monetary, efficiency and effectiveness
c. Monetary, input and output
10 The responsibility centre whose inputs are measured in monetary terms, but B
whose output is not is ---------.
a. Revenue centre
b. Expense canter
c. Profit centre
d. Investment centre
11 Which of the following is true for an engineered expense centre? D

a. Their inputs can be measured in monetary terms
b. Their outputs can be measured in physical terms
c. The optimal rupee amount of input required to produce one unit of output can
be determined.
d. All of the above
12 . If each organizational unit is a responsibility centre then every organizational B

unit’s objective should be the same as that of the entire organization.
a. True
b. False
13 In a revenue centre the primary measurement is --- C

a. Output in physical terms
b. Input in cost terms
c. Revenue
d. Cost incurred by centre
14 14. Management by objective is the process in which- B

a. Top management sets objectives for the sub-ordinate managers.

b. Budget proposes to accomplish specific jobs and prepares budget for it.
c. A manager decides his own area of operations and prepares budget for it
d. Budget is not prepared at all.
15 In case of discretionary expense centre, the financial centre is primarily D
exercised at --- stage.
a. Implementation
b. Quality control
c. Output
d. Planning
16 Total control over discretionary expense centre is achieved primarily through --- B
---- performance measures.
a. Financial
b. Non-financial
c. Objective based
d. Output based
17 The objective of measuring assets of a business entity is to --- C

a. Provide information for strategic planning
b. Providing information regarding financial soundness of the entity
c. To measure the performance of the business unit as an economic activity
d. For future planning
18 . Which of the following is not true? D

Asset employed is equal to
a. Non-current liabilities + shareholder’s equity
b. Total assets – current liabilities
c. Non-current assets + working capital
d. Shareholder’s equity –current liabilities.
19 . Which of the following is correct? A

ROI =
a. Income / Asset employed
b. Revenue / Asset employed
c. Cost / Revenue
d. Profit / No. of shares outstanding
20 Which of the following is not a component of MVA. D

a. Invested capital
b. Current operations value
c. Future growth Value
d. Net Present Value
21 A strategic business unit is.. C
a. Cost centre
b. Revenue centre
c. Profit centre

22 Which of the following is not a customer-related performance measure? A

a. Market Share
b. Customer volume
c. Customer satisfaction
d. New Customers
23 Which one of the following is an example of lead indicator? A
a. Market share
b. Net profit
c. Gross margin
d. ROI
24 There are four elements of Anthony’s model. Which one does not belong to the D
group?
a. Detector
b. Assessor
c. Effecter
d. Rejecter
25 The price of one sub-unit charges for a product or service supplied to another B
sub unit of the same organization is called as ----------.
a. Revenue pricing
b. Transfer pricing
c. Over the counter pricing
26 It is the systematic assessment and analysis of management’s overall C

performance and all activities conducted in the organization.
(A) Cost Audit
(B) Internal Audit
(C) Management Audit
(D) All of the above
27 When the managers at each sub-unit attempt to achieve the goals set by the top C
management, this results into ----
a. Planning and control
b. Responsibility accounting
c. Goal congruence
d. Delegation and decision making
28 Which of the following is not typical cash flow related to equipment purchase D
and replacement decision?
a. Increase operating costs
b. Overhaul of equipment

c. Salvage value of equipment when project is complete

d. Depreciation expense
29 The primary capital budgeting method that uses discounted cash flow A
techniques is the -----
a. Net present value method
b. Cash payback technique
c. Annual rate of return method
d. Profitability index method
30 The Non-profit Organization focus more on ---- A

a. Social welfare/interests
b. Surplus generation
c. Funds mobilization
d. Governance
31 Which of the following area is not covered by management audit? D
a. System and Procedures
b. Board’s / Directors Analysis
c. Research and development
d. New product development cycle time
32 Which of the following is responsible for establishing a private company’s A

internal control?
a. Management
b. Auditors
c. Management and auditors
d. Committee of Sponsoring Organizations
33 . The essence of an effective controlled organization lies in the ---- D
a. Effectiveness of its independent auditor
b. Effectiveness of its internal auditor
c. Attitude of its employee
d. Attitude of its management
34 Which of management’s concerns with respect to implementing internal B
controls is the auditor primarily concerned?
a. Efficiency of operations
b. Reliability of financial reporting
c. Effectiveness of operations
d. Compliance with applicable laws and regulations
35 To be effective an internal audit department must be independent of ----- C

a. Operating departments
b. the accounting departments
c. Both a and b
d. either a a or b, but not both
36 MNCs set transfer prices considering C

a. Manufacturing unit’s profitability

b. Buying centres requirement
c. Tax structure in two countries involved
d. All of the above
37 Performance management is --- C
a. Strategic tool
b. Re-engineering tool
c. Business process
d. Strategic management tool
38 Which of the following is not one of the methodologies used for ensuring A
effective Enterprise Performance Management?
a. Six sigma
b. Activity based control
c. Total quality management
d. Control by exception
39 Strategy implementation is done by---- B
a. Corporate office
b. SBU
c. Both corporate office and SBU
d. None of them
40 Which of the following is not one of the steps for installing responsibility D
accounting system?
a. Create a set of financial performance goals
b. Measure and report actual performance goals
c. Evaluate based on comparison of actual with budgetsd.
d. Initiate corrective actions
41 Which of the following is not a typical cash flow related to equipment purchase D
and replacement decisions?
(a) Increased operating cost
(b) Overhaul of equipment
(c) Salvage value of equipment when project is complete
(d) Depreciation expense
42 Which of the following ignores the time value of money? D

(a) Internal rate of return
(b) Profitability Index
(c) Net present value
(d) Cash payback
43 If project A has a lower payback period than project B, this may indicate that C
project A may have a ….
(a) Lower NPV and be less profitable
(b) Higher NPV and be less profitable
(c) Higher NPV and be more profitable

(d) Lower NPV and be more profitable
44 . A disadvantage of the cash payback technique is that it….. D

(a) Ignores obsolescence factors
(b) Ignores the cost of an investment
(c) Is complicated to use
(d) Ignores the time value of money
45 . If a company’s required rate of return is 10% and, in using the net present C
value method, a project’s net present value is zero, this indicates that the
(a) Project’s rate of return exceeds 10%
(b) Project’s rate of return is less than the minimum rate required
(c) Project earns a rate of return of 10%
(d) Project earns a rate of return of 0%
46 The primary capital budgeting method that uses discounted cash flow A
techniques is the…..
(a) Net present value method
(b) Cash payback technique
(c) Annual rate of return method
(d) Profitability index method
47 When a capital budgeting project generates a positive net present value, this C
means that the project earns a return higher than the…..
(b) Annual rate of return
(c) Required rate of return
(d) Profitability index
48 Intangible benefits in capital budgeting would include all of the following C

except increased…..
(a) Product quality
(b) Employee loyalty
(c) Salvage value
(d) Product safety
49 . The strategic Business Unit evolved from ----- D

a) Hierarchy- based structure of organization
b) Function based structure of organization
c) Territorial structure of organization
d) Divisional structure of organization
50 Which of the following statement about the Strategic Business Unit is true? C
a) SBUs are not tightly controlled
b) SBUs are not separate business setup
c) SBUs are held responsible for their own results / Performance
d) SBUs are evolved from matrix structure

51 A strategic business unit is a ---- C

a) Cost centre
b) Revenue Centre
c) Profit Centre
d) Investment centre
52 Which of the following is not a financial performance measure? D
a) Opening cash flow
b) Return on assets
c) Market Cap
d) Market share/growth
53 Find the odd statement out--- B

a) The Strategic Business Units are the “Natural groupings” of part of a
corporation
b) The Strategic Business Units strategy is the same as the corporate
strategy
c) The Strategic Business Units have an external market focus
d) The Strategic Business Units allow corporate to respond quickly to changes
taking place
54 Which of the following is not a customer related performance measure? A

a) Market share
b) Customer value
c) Customer satisfaction
d) New customers
55 “A projected state of affairs that a person, a system or an organization, plans or D
intends to achieve is ….”
a) Strategy
b) Mission
c) Vision
d) Goal
56 A process where the actions people are led to take in accordance with their C
perceived self-interest are also in the best interest of the organization is known
as ---
a) Synergy
b) Synchronization
c) Congruence
d) Integration
57 . Enterprise Performance Management consists of a set of management and B

analytic processes supported by ----- that enable business to define strategic
goals and then measure and manage performance against these goals.
a) Structure

b) Technology
c) Environment
d) Human resource
58 . Which of the following does not belong to the category of quantitative C
performance indicators?
a) Number of
b) Proportion of
c) Levels of
d) Amount of
59 Which of the following is an example of lead indication? A

a) Market share
b) Net profit
c) Gross margin
d) ROI
a. True
b. False
c. Revenue
62 Management by objective is the process in which- B

b. Budgetee proposes to accomplish specific jobs and prepares budget for
it.
d. Budget is not prepared at all
a. Implementation
b. Quality control
c. Output
d. Planning
64 Total control over discretionary expense centre is achieved primarily through --- B
---- performance measures.
a. Financial
b. Non-financial

c. Objective based
d. Output based
65 For the board of directors of the company, the entire company is a ----------- C
a. Profit centre
b. Expense centre
66 .---------- is a monetary measurement of the number of resources used by a B

a. Sale
b. Cost
c. Revenue
d. Profit
67 Which of the following is used for performance measurement in absolute sense? D
a. Efficiency
b. Effectiveness
c. Both efficiency and effectiveness
68 Efficiency is the ratio of -------------. A
a. Output to input
b. Input to output
c. Sales to cost
d. Cost to sales
69 Classification of responsibility centre is based on the nature of the monetary --- A
------------.
a. Inputs and/or outputs
b. Inputs and outputs
c. Inputs only
d. Outputs only
70 In case of a manufacturing function the optimal relationship is established in B

terms of input and output as-
a. Input in cost and output in cost
b. Input in cost and output in physical units.
c. Input in physical units and output in revenue
d. All of the above
71 A marketing function is an example of B
a. Expense centre
b. Revenue centre

c. Profit centre
d. Discretionary expense centre
72 The criterion for a responsibility centre to be an Investment centre is ------- D

a. Input should be related to capital employed
b. Both input and output should be related to capital employed
c. Output should be related to quality aspect
d. Output is related to capital employed
73 In case of revenue centre, the output is measured in --------- terms, but no C

formal attempt is made to relate --------------------.
a. Physical, quantity and quality
b. Monetary, efficiency and effectiveness
c. Monetary, input and output
74 The responsibility centre whose inputs are measured in monetary terms, but B
whose output is not is ---------.
a. Revenue centre
b. Expense centre
c. Profit centre
d. All of the above
75 . Which of the following is true for an engineered expense centre? D

a. Their inputs can be measured in monetary terms
b. Their outputs can be measured in physical terms
c. The optimal rupee amount of input required to produce one unit of output can
be determined.
d. All of the above
76 If each organizational unit is a responsibility centre then every organizational B

a. True
b. False
c. Revenue
78 . Management by objective is the process in which- B

b. Budget proposes to accomplish specific jobs and prepares budget for it.


a. Implementation
b. Quality control
c. Output
d. Planning
80 . Total control over discretionary expense centre is achieved primarily through - B
------ performance measures.
a. Financial
b. Non-financial
c. Objective based
d. Output based
81 The objective of measuring assets of a business entity is to --- C

a. Provide information for strategic planning
b. Providing information regarding financial soundness of the entity
c. To measure the performance of the business unit as an economic activity
d. For future planning
82 . Which of the following is not true? D

Asset employed is equal to
a. Non-current liabilities + shareholder’s equity
b. Total assets – current liabilities
c. Non-current assets + working capital
d. Shareholder’s equity –current liabilities
83 . Which of the following is correct? A
ROI =
a. Income / Asset employed
b. Revenue / Asset employed
c. Cost / Revenue
d. Profit / No. of shares outstanding
84 Which of the following is not a component of MVA. D

a. Invested capital
b. Current operations value
c. Future growth Value
d. Net Present Value
85 . A strategic business unit is.. C

a. Cost centre
b. Revenue centre
c. Profit centre
86 Which of the following is not a customer-related performance measure? A

a. Market Share

b. Customer volume
c. Customer satisfaction
d. New Customers
87 . Which one of the following is an example of lead indicator? A

a. Market share
b. Net profit
c. Gross margin
d. ROI
88 . There are four elements of Anthony’s model. Which one does not belong to D
the group?
a. Detector
b. Assessor
c. Effecter
d. Rejecter
89 -----costs are not easily changed and are often fixed, for ex, once a company A
has decided to rent a place.
a. Committed
b. Discretionary
c. Engineered
90 The price of one sub-unit charges for a product or service supplied to another B
sub unit of the same organization is called as ----------.
a. Revenue pricing
b. Transfer pricing
c. Over the counter pricing
91 91. When the managers at each sub-unit attempt to achieve the goalsset by the C
top management, this results into ----
a. Planning and control
b. Responsibility accounting
c. Goal congruence
d. Delegation and decision making
92 92. Which of the following is not typical cash flow related to equipment D
purchase and replacement decision?
a. Increase operating costs
b. Overhaul of equipment
c. Salvage value of equipment when project is complete
d. Depreciation expense
93 93. The primary capital budgeting method that uses discounted cash flow A
techniques is the -----
a. Net present value method
b. Cash payback technique

c. Annual rate of return method

d. Profitability index method
94 94. The Non-profit Organization focus more on ---- A

a. Social welfare/interests
b. Surplus generation
c. Funds mobilization
d. Governance
95 95. Which of the following area is not covered by management audit? D

a. System and Procedures
b. Board’s / Directors Analysis
c. Research and development
d. New product development cycle time
96 Which of the following is responsible for establishing a private company’s A

internal control?
a. Management
b. Auditors
c. Management and auditors
d. Committee of Sponsoring Organizations
97 The essence of an effective controlled organization lies in the ---- D

a. Effectiveness of its independent auditor
b. Effectiveness of its internal auditor
c. Attitude of its employee
d. Attitude of its management
98 Which of management’s concerns with respect to implementing internal B
controls is the auditor primarily concerned?
a. Efficiency of operations
b. Reliability of financial reporting
c. Effectiveness of operations
d. Compliance with applicable laws and regulations
99 . To be effective., an internal audit department must be independent of ----- C

a. Operating departments
b. the accounting departments
c. Both a and b
d. either a a or b, but not both
100 1. MNCs set transfer prices considering C

a. Manufacturing units profitability
b. Buying centres requirement
c. Tax structure in two countries involved
d. All of the above

101 . Performance management is --- C

a. Strategic tool
b. Re-engineering tool
c. Business process
d. Strategic management tool
102 Which of the following is not one of the methodologies used used for ensuring A
effective Enterprise Performance Management?
a. Six sigma
b. Activity based control
c. Total quality management
d. Control by exception
103 103. Strategy implementation is done by---- A

a. Corporate office
b. SBU
c. Both corporate office and SBU
d. None of them
104 Which of the following is not one of the steps for installing responsibility D
accounting system?
a. Create a set of financial performance goals
b. Measure and report actual performance goals
c. Evaluate based on comparison of actual with budgets
d. Initiate corrective actions
105 Which of the following is not a typical cash flow related to equipment purchase D
and replacement decisions?
(a) Increased operating cost
(b) Overhaul of equipment
(c) Salvage value of equipment when project is complete
(d) Depreciation expense
106 Which of the following ignores the time value of money? D

(b) Profitability Index
(c) Net present value
(d) Cash payback
107 If project A has a lower payback period than project B, this may indicate that C
project A may have a ….
(a) Lower NPV and be less profitable
(b) Higher NPV and be less profitable
(c) Higher NPV and be more profitable
(d) Lower NPV and be more profitable
108 A disadvantage of the cash payback technique is that it….. D

(a) Ignores obsolescence factors

(b) Ignores the cost of an investment

(c) Is complicated to use
(d) Ignores the time value of money
109 . If a company’s required rate of return is 10% and, in using the net present C
value method, a project’s net present value is zero, this indicates that the
(a) Project’s rate of return exceeds 10%
(b) Project’s rate of return is less than the minimum rate required
(c) Project earns a rate of return of 10%
(d) Project earns a rate of return of 0%
110 . The primary capital budgeting method that uses discounted cash flow A
techniques is the…..
(a) Net present value method
(b) Cash payback technique
(c) Annual rate of return method
(d) Profitability index method
111 . When a capital budgeting project generates a positive net present value, this C
means that the project earns a return higher than the…..
(b) Annual rate of return
(c) Required rate of return
(d) Profitability index
112 . Intangible benefits in capital budgeting would include all of the following C
except increased…..
(a) Product quality
(b) Employee loyalty
(c) Salvage value
(d) Product safety
113 The strategic Business Unit evolved from ----- D

a) Hierarchy- based structure of organization
b) Function based structure of organization
c) Territorial structure of organization
d) Divisional structure of organization
114 . The Strategic Business Unit evolved during the ---- A

a) 1970s & 1980s
b) 1990s
c) 1960s
d) 21st Century
115 . Which of the following statement about the Strategic Business Unit is true? C
a) SBUs are not tightly controlled

b) SBUs are not separate business setup

c) SBUs are held responsible for their own results / Performance
d) SBUs are evolved from matrix structure
116 A strategic business unit is a ---- C

a) Cost centre
b) Revenue Centre
c) Profit Centre
d) Investment centre
117 . Which of the following is not a financial performance measure? D

b) Return on assets
c) Market Cap
d) Market share/growth
118 . Find the odd statement out--- B

a) The Strategic Business Units are the “Natural groupings” of part of a
corporation
b) The Strategic Business Units strategy is the same as the corporate
strategy
c) The Strategic Business Units have an external market focus
d) The Strategic Business Units allow corporate to respond quickly to changes
taking place
119 Which of the following is not a customer related performance measure? A

a) Market share
b) Customer value
d) New customers
120 “A projected state of affairs that a person, a system or an organization, plans or D

intends to achieve is ….”
a) Strategy
b) Mission
c) Vision
d) Goal
121 A process where the actions people are led to take in accordance with their C
perceived self-interest are also in the best interest of the organization is known
as ---
a) Synergy
b) Synchronization
c) Congruence
d) Integration

122 Enterprise Performance Management consists of a set of management and B

analytic processes supported by ----- that enable business to define strategic
goals and then measure and manage performance against these goals.
a) Structure
b) Technology
c) Environment
d) Human resource
123 123. Which of the following does not belong to the category of quantitative C
performance indicators?
a) Number of
b) Proportion of
c) Levels of
d) Amount of
124 . Which of the following is an example of lead indication? A

a) Market share
b) Net profit
c) Gross margin
d) ROI
125 . Performance Management defined C
a) The activity where a line manager sets objectives for his/her staff
b) To develop punitive steps to address poor performance
c)To ensure all stakeholder requirements will be met
d) To comply with the requirements of HR
126 Performance management is believed to have originated from which country? D

a)Japan
b)France
c)Denmark
d)USA
127 127.Which of the following statements about performance management systems D

is not true?
a) Performance management systems are ineffective
b) They encourage a short-term view among managers
c)Recommendations are prescriptive and suggest one best way
d)They improve Organisational performance in the long-term
128 .The term EVA is used for, B

a) Extra Value analysis.
b) Economic Value Added.
c) Expected Value Analysis.
d) Engineering Value Analysis.

129 Management by objective is the process in which- B

b. Budgetee proposes to accomplish specific jobs and prepares budget for
it.
130 .In a revenue centre the primary measurement is --- C

c. Revenue

a. True
b. False
132 .DU POINT Analysis deals with: B

a) Analysis of Current Assets
b) Analysis of Profit
c) Capital Budgeting
d) Analysis of Fixed Assets
133 The term 'EVA' is used for: B

a) Extra Value Analysis
b) Economic Value Added
c) Expected Value Analysis
d) Engineering Value Analysis.
134 Return on Investment may be improved by one of these: A

a) Increasing Turnover
b) Increasing Expenses
c) Decreasing Capital Utilization
d) Over budgeting
135 Planning of Performance requires: C
a) Translating the job description into objectives and measures
b) Assessing your culture
c) Setting aligned KPA’s and objectives
d Defining a development plan for employees
136 A static budget is useful in controlling costs when cost behavior is: B
a) Mixed.
b) Fixed.
c) Variable.
d) Linear

137 Under responsibility accounting, the evaluation of a manager’s performance is A

based on matters that the manager:
a) Directly controls
b) Directly and indirectly controls
c) Indirectly controls
d) Has shared responsibility for with another manager
138 Maintaining performance includes, B

a) Checking up staff to ensure they perform optimally
b) Provide coaching and training where gaps e-ist
c) Normal feedback
d) Disciplining non poor performance
139 Responsibility Centres are created for D

(a) decentralization of functions
(b) to relieve top management of day to day activities
(c) for better control
(d) all of the above
140 The right way of calculating EVA is…. B

(a)NPOAT-WACC
(b) NOPAT+ Depreciation − Interest
(c) NOPAT +Interest −WACC
141 .The term budget period is related to A
a) The year for which budget is prepared
b) The year for which budget is finalized
c) The year for which budget is adjusted
d) The year for which budget is forecasted
142 Which of the following is not a function of budgeting: B
a) Motivating
b) Decision making
c) Controlling
d) Planning
143 What you want to accomplish with a strategic plan are: C
a) Marketing plan
b) Advertising plan
c) Business plan
d) Investment plan
144 Which of the following is generally considered as non-profit oriented A

organisation?
a) Charitable trust
b) Corporation
c) Stock Market
d) Insurance Company
145 1The receipt and payment account of non-profit organisation is B

a) Nominal A/c
b) Real A/c
c) Personal A/c
d)P& L
146 . Which of the following ignores the time value of money: A

a) IRR
b) NPV
c) PI
d) PBP
147 The primary capital Budgeting Method that uses discounted cash flow technique A
is:
a) Net present value
b) Face value
c) Discounted value
d) Cash value
148 . Future value may be defined as: D

a) Discounted value
b) Interest rate
c) Opportunity cost
d) compounded value
149 Capital Budgeting decision are: B

a) Reversible
b) Irreversible
c) Unimportant
d) Flexible
150 An Assets become Non performing : D

a) After defaulting of 180 days
b) After defaulting of 60 days
c) After defaulting of 120 days
d)After defaulting of 90 days
151 Two-Step transfer prices depends upon: D

a) ROI requirement
b) EVA requirement
c) Profit requirement
d)Corporate profit requirement
152 . Market based transfer prices includes a charge for: D
a) Marketing Expenses
b) Bad debts provision
c) Indirect taxes
d)None of the above

153 MNC sets transfer prices considering: D

a) Manufacturing unit profitability
b) Buying centres profitability
c) Selling centres profitability
d)Tax structure in the countries
154 . The capital adequacy ratio be maintain by bank in India is C

a) 8%
b) 10 %
c)12 %
d) 14%
155 . Operational risk is B
a) Created by a fluctuation in interest rate
b)Created by people and process of bank
c) Created by reputation of bank
d) Created by loss of bank
156 SLR/CRR used by RBI to C

a) Manage liquidity in system
b) To fight with inflation
c)Both of the above
d) None of the above
157 Free based income is important for a bank because: C
a) It is additional source of income
b) It is risk free by nature
c)Both of the above
d) None of the above
158 Registration charge while giving loan is the responsibility of: A
a)Borrower
b)Bank
c) Both
d) None
159 A project may face the following risk: D
a) Completion risk
b) Financial risk
c) technical risk
d)All of the above
160 Which of the following pair of paradigm shifts in the contemporary business B
environment is incorrect:
a) Control to decontrol
b) Competition to opening up
c) Production to Marketing
d) Volume to profit

161 Which of the following pair of changes with changes in Organisational changes D
in the 20th and 21st century is incorrect:
a) Goal directed to vision directed
b) Bureaucratic to entrepreneurial
c) Compliance to commitment
d) Efficient to stable
162 Today’s organisation are not changing internally as regards: D

a) Structure
b) System
c) Culture
d)Leadership
163 The six essential dimensions of performance does not include which of the D
following
a) Innovation
b) Re-engineering
c) Speed
d)Quality
164 1. Today’s market place is described as Competitive battle field is said by: A
a) C.K. Prahlad
b) Michal Porter
c) Peter Drucker
d) Philip Kotler
165 The SBU evolved during the: D
a) 1980
b) 1970
c) 1990
d)21st century
166 166. Which of the following statement regarding SBU is true: D

a) SBU are not tightly controlled
b) SBU are not separate business set up
c) SBU are held responsible for their own performance
d)SBU are evolved from matrix structure
167 . A SBU is a D
a) Cost Centre
b) Profit Centre
c) Revenue centre
d)Investment Centre
168 . Which of the following is not a financial performance measure: D
b) Return on assets
c) Market capital
d) Market growth

169 . Find out odd statement: B

a) SBU are natural grouping of part of corporation
b)SBU strategy are same as corporate strategy
c) SBU have an external market focus
d) SBU allows corporate to respond quickly to changes taking place
170 . Which of the following is not as customer related performance measure: A

a) Market Share
b) Customer volume
d) New customer
171 . A projected state of affairs that a person, system or a organisation plan to D

intends to achieve is:
a) Strategy
b) Mission
c) Vision
d) Goal
172 A process where the action people are led to take in accordance with their B
perceived self-interest are also in the best interest of the organisation known as:
a) Synergy
b)Goal congruence
c)synchronization
d) Integration
173 Which of the following is not one of the typical functions performed by the C
retailers;
a) Breaking bulk
b) Holding Inventory
c)Providing single product services
d) Quality Holding
174 The selective and analytical approach to control investment in various types of A
investment in various types of inventories is known as:
a)ABC analysis
b) Gross margin ROI
c) Multiple attribute method
d) Sell through analysis
175 Performance Management defined C

a) The activity where a line manager sets objectives for his/her staff
b) To develop punitive steps to address poor performance
c) To ensure all stakeholder requirements will be met
d) To comply with the requirements of HR

176 Performance management is believed to have originated from which country? D

a) Japan
b) France
c) Denmark
d) USA
177 Which of the following statements about performance management systems is D

not true?
a) Performance management systems are ineffective
b) They encourage a short-term view among managers
c) Recommendations are prescriptive and suggest one best way
d) They improve Organisational performance in the long-term
178 1The term 'EVA' is used for: B
a) Extra Value Analysis,
b) Economic Value Added,
c) Expected Value Analysis,
d) Engineering Value Analysis
179 DU PONT Analysis deals with: B
a) Analysis of Current Assets,
b) Analysis of Profit,
c) Capital Budgeting,
d) Analysis of Fixed Assets
180 Return on Investment may be improved by one of these: A
a) Increasing Turnover,
b) Increasing Expenses,
c) Decreasing Capital Utilization,
d) Over budgeting
181 181). Planning of Performance requires: D
a) Translating the job description into objectives and measures
b) Assessing your culture
c) Setting aligned KPA’s and objectives
d) Defining a development plan for employees
182 Maintaining performance includes: B
a) Checking up staff to ensure they perform optimally
b) Provide coaching and training where gaps exist
c) Formal feedback
d) Disciplining non poor performance
183 183). Key Value Drivers are: D

a) The assets of the company
b) The requirements and expectations of all key stakeholders
c) Formally reported in the annual report
d) The basis of strategy and operational focus areas
184 Budgetary control involves all but one of the following: C

a) Modifying future plans.

b) Analysing differences.
c) Using static budgets.
d) Determining differences between actual and planned results. Ans: c
185 A static budget is useful in controlling costs when cost behavior is: B
a) Mixed.
b) Fixed.
c) Variable.
d) Linear.
186 186). Under responsibility accounting, the evaluation of a manager’s A

performance is based on matters that the manager:
a) Directly controls.
b) Directly and indirectly controls.
c) Indirectly controls.
d) Has shared responsibility for with another manager.
187 187). Responsibility centres include: D

a) Adjustment centres.
b) Call centres.
c) Exam centres.
d) Profit centre.
188 Responsibility reports for cost centres: B
a) Distinguish between fixed and variable costs.
b) Use static budget data.
c) Include both controllable and non-controllable costs.
d) Include only controllable costs..
189 For the board of directors of the company, the entire company is a ———– C
a. Profit centre
b. Expense centre
190 ———- is a monetary measurement of the number of resources used by a A

a. Sale
b. Cost
c. Revenue
d. Profit
191 . Information type which focuses on accomplishments of employees is classified C
as
A. trait based information

B. behavior based information
C. results based information

D. coaching based information
192 Performance appraisal measurement error in which prejudices of rater distort A

results of rating is classified as
a) rater bias
b) halo effect
c) contrast error
d) sampling error
193 .Forced distribution and ranking are considered as methods of A
a) comparative methods
b) narrative methods
c) behavioral methods
category rating methods
194 . The objective of financial Audit statement by the quditor is the expression of B
an opinion on:
a) The accuracy of financial statements
b) The fairness of financial statements
c) The balance sheet and income statement
d) The annual reports
195 The internal auditor typically belongs to: C

a) The management of the company
b) The audit committee and management of the company
c) The audit committee and BOD
d) BOD and external auditor
196 .Auditing should be done by: C

a) Professional accountant
b) certified management accountant
c) competent and independent person
d) CA
197 It is the percentage about how many users came to your website and left before B
taking any other action on your website like purchasing product or services.
(A) IRR equal to the cost of capital
(B) Bounce rate
(C) Conversion rate
(D) None of the above

198 If a customer stop purchasing your product, close his/her account, cancel the C
subscription it is called
(A) Conversion rate
(B) Bounce rate
(C) Churn rate
(D) None of the above
199 It explains the efficiency of marketing and advertising efforts by the marketing A
team.
a) Conversion Rate
b) Churn rate
c) Bounce rate.
d) All statements are correct.
200 . Which of the following is NOT a benefit of E-commerce? C
A) Save time
B) Save travelling cost
C) Customer can touch the product
D) Easy and quick payment
201 Which of the following is the accounting equation for a non-profit C

organization?
A) Asset = Capital + Liabilities

B) Capital + Liabilities = Assets
C) Accumulated fund + Liabilities = Assets
D) Liabilities = Asset + Accumulated fund
202 It is a detailed assessment conducted to authenticate the accuracy and A
correctness of cost Accounts
(A) Cost Audit
(B) Internal Audit
(C) Management Audit
203 Cost of customer acquisition shows about how much ______you spend on D
acquiring new customers
(A) Money
(B) Time
(C) Efforts
204 Audit Report is prepared by _____ C
(A) Accountant

(B) Management
(C) Auditor
(D) Customers
205 The fundamental objective of the audit of a company is to: D
(A). Protect the interests of the shareholders
(B). Identify and prevent errors and fraud
(C). Evaluate the effectiveness of the company’s performance
(D). Attest to the credibility of the company’s accounts
206 When the auditor is an existing employee of the organization being audited, A
the audit is categorized as
A) Internal
B) External
C) Compliance
D) Both A&B
207 Non-profit organizations prepare all of the following accounts except the D
A) Receipts and payment accounts

B) Income and Expenditure accounts
C) Balance sheet
D) Income statement
208 Which of the following is generally considered as a non-profit oriented A
organization?
A) Charitable organization
B) Corporation
C) Audit firms
D) Insurance companies
209 In retail GMROI defined as A
a) Gross margin / average inventory cost
b) Units sold/ total units
c) net income / sales
d) gross margin/ capital
210 The selective and analytical approach to control investment in various B
types of inventories is known as
a) GMROI
b) ABC analysis
c) Multiple Attribute method
d) Sell through analysis

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DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH

Course Name: Enterprise Performance Management

Sr. Question Answer

2 ---------- is a monetary measurement of the number of resources used by a B.

3 Which of the following is used for performance measurement in absolute D.

4 Efficiency is the ratio of -------------. A.

5 Classification of responsibility centre is based on the nature of the monetary --- A.

6 In case of a manufacturing function the optimal relationship is established in B.

Dr. Varsha Goyal www.dimr.edu.in

7 A marketing function is an example of B.

8 The criterion for a responsibility centre to be an investment centre is ------- B.

11 Which of the following is true for an engineered expense centre? D

12 . If each organizational unit is a responsibility centre then every organizational B

13 In a revenue centre the primary measurement is --- C

14 14. Management by objective is the process in which- B

Dr. Varsha Goyal www.dimr.edu.in

a. Top management sets objectives for the sub-ordinate managers.

17 The objective of measuring assets of a business entity is to --- C

18 . Which of the following is not true? D

19 . Which of the following is correct? A

20 Which of the following is not a component of MVA. D

Dr. Varsha Goyal www.dimr.edu.in

22 Which of the following is not a customer-related performance measure? A

26 It is the systematic assessment and analysis of management’s overall C

Dr. Varsha Goyal www.dimr.edu.in

c. Salvage value of equipment when project is complete

30 The Non-profit Organization focus more on ---- A

32 Which of the following is responsible for establishing a private company’s A

35 To be effective an internal audit department must be independent of ----- C

36 MNCs set transfer prices considering C

Dr. Varsha Goyal www.dimr.edu.in

a. Manufacturing unit’s profitability

42 Which of the following ignores the time value of money? D

Dr. Varsha Goyal www.dimr.edu.in

(d) Lower NPV and be more profitable

44 . A disadvantage of the cash payback technique is that it….. D

48 Intangible benefits in capital budgeting would include all of the following C

49 . The strategic Business Unit evolved from ----- D

Dr. Varsha Goyal www.dimr.edu.in

51 A strategic business unit is a ---- C

53 Find the odd statement out--- B

54 Which of the following is not a customer related performance measure? A

57 . Enterprise Performance Management consists of a set of management and B

Dr. Varsha Goyal www.dimr.edu.in

59 Which of the following is an example of lead indication? A

62 Management by objective is the process in which- B

Dr. Varsha Goyal www.dimr.edu.in

66 .---------- is a monetary measurement of the number of resources used by a B

70 In case of a manufacturing function the optimal relationship is established in B

Dr. Varsha Goyal www.dimr.edu.in

72 The criterion for a responsibility centre to be an Investment centre is ------- D

73 In case of revenue centre, the output is measured in --------- terms, but no C

75 . Which of the following is true for an engineered expense centre? D

76 If each organizational unit is a responsibility centre then every organizational B

78 . Management by objective is the process in which- B

Dr. Varsha Goyal www.dimr.edu.in

79 In case of discretionary expense centre, the financial centre is primarily D

81 The objective of measuring assets of a business entity is to --- C

82 . Which of the following is not true? D

84 Which of the following is not a component of MVA. D

85 . A strategic business unit is.. C

86 Which of the following is not a customer-related performance measure? A