CCE- 401 GC – 14 Enterprise Performance Management

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MBA-IV SEM-IV 2021-22 CCE

S. P. Mandali's
Prin. N.G.Naralkar Institute of Career Development & Research
536 Shaniwar Peth, Appa Balwant Chowk (ABC Chowk) Pune-411030

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CCE-401 GC – 14 Enterprise Performance Management

MBA-IV SEM-IV 2021-22 CCE

The term 'EVA' is used for:

Extra Value Analysis,

Economic Value Added

Expected Value Analysis

Engineering Value Analysis

Clear selection

Responsibility accounting as a system of management accounting under which

Accountability is established

According to the responsibility delegated

Management information and reporting system is instituted

All of these

Clear selection

Following method of transfer pricing has motivating factor for seller department

Variable cost base

Total cost based

Cost plus method

None of these

Clear selection

Performance Management defined

The activity where a line manager sets objectives for his/her staff

To develop punitive steps to address poor performance

To ensure all stakeholder requirements will be met

To comply with the requirements of HR

Clear selection

Performance management is believed to have originated from which country?

Japan

France

Denmark

USA

Clear selection

In a responsibility report for a profit center, controllable fixed costs are deducted from contribution margin to show:

Profit center margin.

Controllable margin

Net income

Income from operations

Clear selection

Variable cost of making Rs 50/piece. 1Fixed cost 30 lacks. 2Normal capacity 1 Lacks. 3Market price of product Rs 100 / piece. 4Variable cost of selling RS 5 / piece. 5Then transfer price per piece should be

Rs 50/piece

Rs 80/piece

Rs 100/piece

Rs 95/piece

Clear selection

If the tax rate of the country of seller department is higher than the country of the buyer department, in order to save tax the transfer price decided should be on

Higher side

Lower side

None of these

Won’t make difference as far as tax savings is considered

Clear selection

Engineered cost centre is the cost centre where

Costs are measurable and controllable to the minute details

The output can be measured in physical terms

Cost incurred are related to the quantity and quality of output

All of these

Clear selection

Which of the following would have a low likelihood of being organized as a profit center?

A maintenance department that charges users for its services

The billing department of an Internet Services Provider (ISP)

The mayor's office in a large city

Both "C" and "D" above

Clear selection

Company decides to make the product when

Total cost of making is less than total cost of buying

Total cost of making is more than total cost of buying

Relevant cost of making is less than relevant cost of buying

Relevant cost of making is more than relevant cost of buying

Clear selection

"Variable cost of making Rs 50/piece, Fixed cost 30 lacks.Normal capacity 1 lack, out of which 80,000 pieces are sold in outside market and 20000 pieces transferred internally.Market price of product Rs 100/piece.Variable cost of selling Rs 5/piece.Assuming there is no outside market for more than 80000 pieces available, but company can save fixed cost by Rs 12 lacks if capacity is reduced to 80000 pieces, what should be the transfer price per piece "

Rs 50/ piece

Rs 110/piece

Rs 90/piece

Rs 100/piece

Clear selection

For effective implementation of responsibility accounting following are requirements

Well defined organization structure

Proper description and delegation of responsibility

Delegation of equivalent authority

All of these

Clear selection

A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a(n):

Cost center

Revenue center

Profit center

Investment center

Clear selection

Responsibility reports for cost centers:

Distinguish between fixed and variable costs.

Use static budget data.

Include both controllable and non-controllable costs

Include only controllable costs

Clear selection

A static budget is useful in controlling costs when cost behavior is

Mixed

Fixed

Variable

Linear

Clear selection

Which of the following is not the advantage of transfer pricing

Tax management: It helps the enterprise to minimize tax liability

It is difficult to arrive at a consensus transfer price

It enhances motivational level in the organization

If helps in logical decision making and improves capacity utilization

Clear selection

DU PONT Analysis deals with:

Analysis of Current Assets

Analysis of Profit

Capital Budgeting

Analysis of Fixed Assets

Clear selection

Variable cost of making Rs 50/piece, Fixed cost 30 lacks. 1Normal capacity 1 lack, out of which 80,000 pieces are sold in outside market and 20000 pieces transferred internally. 2Market price of product Rs 100/piece. 3Variable cost of selling Rs 5/piece. 4Assuming there is no outside market for more than 80000 pieces available, and no alternative use of balance capacity, what should be the transfer price per piece

Rs 50/ piece

Rs 80/piece

Rs 100/piece

Rs 95/piece

Clear selection

Responsibility centers include:

Adjustment centers

Call centers

Exam centers

Profit center

Clear selection

Controllable costs, as used in a responsibility accounting system, consist of:

Only fixed costs

Only direct materials and direct labor

Those costs that a manager can influence in the time period under review

Those costs about which a manager has some knowledge. Those costs that are influenced by parties external to the organization

Clear selection

Return on Investment may be improved by one of these:

Increasing Turnover

increasing Expenses

decreasing Capital Utilization

over budgeting

Clear selection

Budgetary control involves all but one of the following:

Modifying future plans.

Analyzing differences

Using static budgets

Determining differences between actual and planned results

Clear selection

Which of the following statements about performance management systems is not true?

Performance management systems are ineffective

They encourage a short-term view among managers

Recommendations are prescriptive and suggest one best way

They improve organisational performance in the long-term

Clear selection

In the formula for return on investment (ROI), the factors for controllable margin and operating assets are, respectively:

Controllable margin percentage and total operating assets

Controllable margin dollars and average operating assets

Controllable margin dollars and total assets

Controllable margin percentage and average operating assets

Clear selection

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