2. Which of the following is not incorporated in Capital Budgeting?
Correct : D. Rate of Cash Discount
3. PERT / CPM have to be used for proper ……………….. of all projects
Correct : B. controlling
4. BSC is important for ………
Correct : C. evaluating the performance of a strategy
5. Classification of responsibility center is based on the nature of the monetary ……………
Correct : A. Inputs and/or outputs
6. Discretionary expenses are expenses ………
Correct : B. that do not hamper the operations immediately
7. For the board of directors of the company, the entire company is a ……………….
Correct : C. Responsibility center
8. In a revenue center the primary measurement is ………………….
Correct : C. Revenue
9. In case of discretionary expense center, the financial center is primarily exercised at ………. Stage.
Correct : D. Planning
10. In case of revenue center the output is measured in ……………. terms, but no formal attempt is made to relate ……………….
Correct : C. Monetary, input and output
11. In financial performance measurement most important is ……………
Correct : A. EVA
12. Performance management is …………….
Correct : C. Business process
13. Profit centre profit is calculated ……....
Correct : B. after debiting corporate overheads
14. A major part of strategy implementation is …….
Correct : C. Resource allocation
15. The Enterprise Performance Management core processes does not include which of the following?
Correct : C. Business Analytics
16. The Malcolm Baldrige Award is awarded by the Government of ……….
Correct : D. U.S.A.
17. The responsibility center whose inputs are measured in monetary terms, but whose output is not, is ………………..
Correct : B. Expense center
18. Two step transfer prices depend on ……………….
Correct : C. corporate profit requirement
19. Which of the following does not belong to the category of quantitative performance indicators?
Correct : C. Levels of
20. Which of the following is correct? ROI =
Correct : A. Income / Asset employed
21. Which of the following is not a financial performance measure?
Correct : D. Market share/growth
22. Which of the following is not an entity with reference to Baldrige Criteria / Framework?
Correct : A. Team Focus
23. The selective and analytical approach to control investment in various types of inventories is known as ……………………………
Correct : A. ABC Analysis
24. The Sell Through Analysis is not about ………………………
Correct : A. Sales
25. The Non-profit Organization focus more on ………..
Correct : A. Social welfare/interests
26. The time the activity would take if things did not go well is known as
Correct : A. Pessimistic time
27. Which of the following is responsible for establishing a private company’s internal control?
Correct : A. Management
28. A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a(n)
Correct : D. Investment center
29. In the balanced scorecard approach quality would come under which perspective?
Correct : A. The internal perspective
30. Performance management is believed to have originated from which country?
Correct : D. USA
31. The overall purpose of the balanced scorecard approach is to:
Correct : A. Help turn strategy into action
32. The process of evaluating an employee’s current and/or past performance relative to his or her performance standards is called
Correct : C. performance appraisal
33. The term 'EVA' is used for:
Correct : B. Economic Value Added
34. The U.S. National Quality Award is named after
Correct : D. Malcolm Baldrige
35. Which of the following statements is false? Balanced scorecards
Correct : C. Cannot be used in conjunction with budgetary control systems
36. Which of the following statements regarding flaws suffered by financial measures is not correct:
Correct : D. They are useful in identifying operational problems
37. Which of the following variable does ROI examine?
Correct : B. EVA
38. A sound Capital Budgeting technique is based on:
Correct : A. Cash Flows
39. Capital Budgeting deals with:
Correct : A. Long-term Decisions,
40. Capital Budgeting Decisions are based on:
Correct : B. Incremental Cash Flows
41. Capital Budgeting is a part of:
Correct : A. Investment Decision
42. Which of the following is not applied in capital budgeting?
Correct : C. All accrued costs and revenues be incorporated
43. Which of the following is not followed in capital budgeting?
Correct : C. Accrual Principle
44. Which of the following is not true for capital budgeting?
Correct : B. Opportunity costs are excluded
45. Which of the following is not used in Capital Budgeting?
Correct : C. Net Assets Method
46. Which one is the Capital Expenditure?
Correct : C. Machine purchased
47. Who among the following have the authority to inspect the books of accounts?
Correct : D. Both (a) and (c)
48. Under responsibility accounting, the evaluation of a manager’s performance is based on matters that the manager:
Correct : A. Directly controls
49. Return on Assets and Return on Investment Ratios belong to:
Correct : B. Profitability Ratios
50. ………….. costs are not easily changed and are often fixed, for ex, once a company has decided to rent a place.
Correct : A. Committed
51. Management by objective is the process in which
Correct : B. Budgeteer proposes to accomplish specific jobs and prepares budget for it.
52. Return on Assets (ROA) ratio is given by which of the following?
Correct : C. Net Income/ Total Assets
53. The Strategic Business Unit evolved during the ………………………
Correct : A. 1970s & 1980s
54. The strategic Business Unit evolved from …………………
Correct : D. Divisional structure of organization
55. There are four elements of Anthony’s model. Which one does not belong to the group?
Correct : D. Rejecter
56. Total control over discretionary expense center is achieved primarily through ……… performance measures.
Correct : B. Non-financial
57. Which of the following areas is not covered under the Baldrige Award?
Correct : D. Multi National Corporation (MNC)
58. Which of the following is an example of lead indication?
Correct : A. Market share
59. If project A has a lower payback period than project B, this may indicate that project A may have a …………….
Correct : C. Higher NPV and be more profitable
60. The primary capital budgeting method that uses discounted cash flow techniques is the ……....
Correct : A. Net present value method
61. Which of the following ignores the time value of money?
Correct : D. Cash payback
62. Which of the following is not true? Asset employed is equal to
Correct : D. Shareholder’s equity
–current liabilities
63. As asset becomes Non Performing after default of ……………………
Correct : C. 90 days
64. As per the RBI guidelines banks have to make sure that out of their loan assets loans are given to Priority Sector.
Correct : B. 40%
65. The capital adequacy ratio to be maintained by public sector banks in India is ……………....
Correct : D. 12%
66. The Retailer is selling the merchandise for more than it costs the Retailer to acquire it, then the GMROI Ratio would be ……………………
Correct : A. Higher than 1
67. Which of the following do not fall under Financial inclusion ?
Correct : D. Education at affordable cost
68. While calculating the Gross Margin Ratio on Investment (GMROI), the TWO important aspects are:
Correct : B. Gross Margin and Average Inventory Cost
69. Assembling project team and assigning their responsibilities are done during which phase of project management?
Correct : B. Project Initiation
70. PERT is the
Correct : B. Event oriented technique
71. Which of the following is not one of the eight specific principles of Social Audit?
Correct : D. Non-Participatory
72. Which of the following statement about NPOs is not true?
Correct : D. The NPOs are subjected to Market Mechanism
73. Which is not a primary objective of audit?
Correct : A. Detection and Prevention of Errors
74. Which of the following area is not covered by management audit?
Correct : D. New product development cycle time
75. Which of the following area is specially covered by Management Audit?
Correct : A. Economic Contribution Analysis
76. Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
Correct : A. The Shareholders in a general meeting
77. A Balanced Scorecard helps the organisation to:
Correct : B. Be focus on all the relevant business perspectives
78. A cost center manager
Correct : A. Does not have the ability to produce revenue
79. According to DuPont analysis, increase in the profit margin (all else constant) should
Correct : A. Increase both ROE and ROA
80. DU PONT Analysis deals with
Correct : B. Analysis of Profit
81. If return on investment is a measure used on the balanced scorecard, under which perspective would it be listed
Correct : A. Financial perspective
82. Pitfalls exists the same as with any new technology or management tool. All of the following describe these pitfalls except
Correct : C. A poor scorecard is the biggest threat and one of the dangerous pitfalls
83. Responsibility centers include
Correct : D. Profit center
84. Responsibility reports for cost centers
Correct : D. Include only controllable costs
85. Return on Investment may be improved by one of these
Correct : A. Increasing Turnover
86. ROI can be viewed as a function of the net profit margin times
Correct : C. The total asset turnover
87. The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is:
Correct : B. Employee satisfaction measures
88. The drive in world markets to produce superior goods has led some countries to recognize or award prizes. What is the name of U.S. prize for developing quality products:
Correct : B. Malcolm Baldridge National Quality Award
89. The following are basic elements in which Continuous Improvement framework (leadership; planning; service orientation; information and analysis; employees and workplace climate; process management; excellence levels and trends
Correct : D. Malcolm Baldridge Quality Award
90. What is a measure of operating performance that indicates how successful the firm has been at increasing its MVA in a given year.
Correct : A. Economic value added (EVA)
91. What is not included in a firm’s expenses?
Correct : D. Dividends
92. What is the term used to describe the value assigned to the goods or services sold or rented from one unit of an organization to another
Correct : C. Transfer price
93. When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is
Correct : A. Goal congruence
94. Which of the following statements about performance management systems is not true?
Correct : D. They improve organisational performance in the long-term
95. Which transfer pricing method will preserve the subunit autonomy?
Correct : B. Negotiated pricing
96. Controllable costs, as used in a responsibility accounting system, consist of:
Correct : C. Those costs that a manager can influence in the time period under review.
97. Evaluation of Capital Budgeting Proposals is based on Cash Flows because:
Correct : C. Cash is more important than profit
98. Sale of machine of machine merchandising business is –
Correct : D. Revenue receipt
99. What do we call a formal comparison of the actual costs and benefits of a project with original estimates?
Correct : A. Post-completion audit
100. Compliance with the Standard of Auditing is the responsibility of