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Free ACCA Performance Management Practice Questions & Answers

400 exam-style Performance Management questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 301

Which of the following is a leading indicator of future financial performance?

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Question 302

What is the purpose of a Key Performance Indicator (KPI)?

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Question 303

Which of the following best describes a lagging indicator?

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Question 304

Balanced Scorecard measures in the learning and growth perspective typically include:

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Question 305

What does a Net Promoter Score (NPS) measure?

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Question 306

What distinguishes external failure costs in environmental management accounting from internal failure costs?

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Question 307

What is a critical success factor (CSF)?

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Question 308

The customer perspective of the Balanced Scorecard typically measures:

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Question 309

What does the term 'performance management' encompass?

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Question 310

Which of the following is a measure associated with the 'innovation and learning' perspective (learning and growth) of the Balanced Scorecard?

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Question 311

Which of the following is TRUE about the Balanced Scorecard?

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Question 312

What is the difference between efficiency and effectiveness in performance management?

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Question 313

What does ROI stand for and how is it calculated at divisional level?

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Question 314

Map these measures to BSC perspectives: (1) Revenue per customer; (2) Defect rate per 1,000 units; (3) Employee training hours; (4) Customer churn rate.

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Question 315

A service business uses Fitzgerald and Moon's building blocks. Which block ensures performance measures are fair and within managers' control?

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Question 316

Economic Value Added (EVA) = NOPAT - (Capital employed x WACC). A company: NOPAT 800,000; Capital 5,000,000; WACC 14%. Calculate EVA.

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Question 317

Triple bottom line (TBL) reporting covers:

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Question 318

A company uses benchmarking. Internal benchmarking compares:

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Question 319

A retailer measures same-store sales growth, basket size, footfall, conversion rate, and Net Promoter Score. Which of these are leading indicators of future financial performance?

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Question 320

A company tracks: staff turnover (15%), training hours per employee (30 hrs/yr), internal promotion rate (40%), and innovation pipeline (8 new products in development). Which BSC perspective do these belong to and what risk does a deterioration in these metrics signal?

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Question 321

What is the main limitation of return on investment (ROI) as a divisional performance measure?

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Question 322

A professional services firm measures: billable hours per consultant (utilisation rate), client satisfaction score, staff retention rate, and revenue per client. Map to BSC and identify which is most critical for long-run financial performance.

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Question 323

A company improves customer satisfaction scores from 72% to 85% over two years. Revenue grows 8%. The relationship between customer satisfaction and revenue growth illustrates:

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Question 324

A company introduces an annual pay-for-performance scheme: managers receive a 20% bonus if they hit annual profit targets. After two years, maintenance spending falls 40%, customer complaints rise 30%, and employee training halves. Explain the likely cause.

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Question 325

What is functional benchmarking?

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Question 326

A retailer tracks: Net Promoter Score (NPS), average basket size, store conversion rate, repeat purchase rate, and returns rate. Which of these is most likely a leading indicator of revenue growth?

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Question 327

A company measures employee absenteeism rate (currently 6.5% vs industry average 3.2%). Interpret this metric and suggest implications.

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Question 328

A hospital's performance data: Cost per patient 2,800 (below national average 3,100 — good economy); patients treated per nurse per day 12 (above national average 8 — good efficiency); readmission within 30 days 22% (national average 11% — poor effectiveness). Evaluate overall VFM.

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Question 329

A manufacturing company tracks: on-time delivery rate, first-pass yield, machine downtime rate, and customer complaint rate. These belong to which BSC perspective?

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Question 330

A company monitors its carbon emissions alongside financial performance. Emissions have fallen 25% over three years while production rose 10%. Interpret this.

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Free ACCA Performance Management Practice Questions & Answers

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