Advanced Performance Management Flashcards
7 cards from real ACCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Advanced Performance Management flashcards as text
Which element of the Balanced Scorecard captures metrics such as employee training hours and innovation rates?
Answer: Learning and growth perspective
The learning and growth perspective focuses on organizational capacity, including employee skills, knowledge systems, and innovation.
A company uses a transfer price equal to marginal cost plus a fixed fee. Which transfer pricing method does this represent?
Answer: Two-part tariff
A two-part tariff charges the buying division marginal cost per unit plus a fixed fee to allow the selling division to recover fixed costs and earn a profit.
In Beyond Budgeting, which of the following BEST describes the role of targets?
Answer: Relative targets benchmarked against external competitors or peers
Beyond Budgeting replaces fixed internal targets with relative benchmarks against peers or competitors to promote adaptive, dynamic performance.
Porter's Value Chain divides firm activities into primary and support activities. Which of the following is a PRIMARY activity?
Answer: Outbound logistics
Outbound logistics — activities related to collecting, storing, and distributing outputs — is one of the five primary activities in Porter's Value Chain.
Which performance measure calculates the percentage of a company's total available capacity that is actively used in production?
Answer: Capacity utilization rate
Capacity utilization rate measures actual output as a proportion of maximum potential output, indicating how effectively capacity is deployed.
Under Fitzgerald and Moon's Building Block model, which block directly links performance measures to the underlying drivers of results?
Answer: Determinants
Determinants (quality, flexibility, resource utilization, and innovation) are the drivers that cause the results (competitiveness and financial performance) measured in the dimensions block.
A firm's supply chain strategy emphasizes responsiveness over efficiency. Which of the following product characteristics MOST justifies this approach?
Answer: High demand uncertainty and short product life cycles
High demand uncertainty and short life cycles require a responsive supply chain that can quickly adapt, even at higher cost, to avoid stockouts or obsolescence.