These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-C of the Syllabus “Performance measurement”.

These multiple-choice questions (MCQs) are designed to help ACCA F2 (MA) students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Target setting
Chapter Number: 15 of the Practice and Exam Kit
Syllabus Area: C – Performance measurement
Questions Type: CBE MCQs
Exam Section Type: Section A

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Authentic Exam Experience:
Practicing online allows ACCA students to experience an environment closely resembling the actual exam. The MCQs on our platform are designed to mirror the format, difficulty level, and question types found in ACCA exams. This familiarity helps students become more comfortable and confident when facing the real exam.
Comprehensive Question Bank:
We provided comprehensive question banks covering various topics across the syllabus. By practicing online, students gain access to a wide range of MCQs that thoroughly test their knowledge and understanding in each area.
Enhanced Learning and Retention:
The interactive nature of online practice enhances learning and improves information retention. Students can actively engage with the MCQs, select answers, and receive immediate results. This approach aids in reinforcing concepts and identifying areas that require further study, thereby maximizing learning outcomes.
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Practicing online helps students develop essential time management skills required for ACCA exams. By adhering to time limits while answering MCQs, students learn to allocate their time effectively and improve their speed and accuracy. This skill is invaluable for completing the actual exam within the given time constraints.
Performance Tracking and Progress Evaluation:
Students can monitor their results, track their strengths and weaknesses, and identify areas that need improvement.

Number of the Questions

There are 16 Questions in this F2 MCQ Test that cover Chapter 15; Target setting of ACCA F2 (MA/FMA) Management Accounting Module.

Time

This MCQs test is not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F2 CBE MCQ result after they finish the entire test. They will also be able to see the score in percentage, correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all answers that seem correct or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)”.
Dropdown: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F2 - Chapter 15 - Part A - MCQs

Course: ACCA - FIA
Subject: F2 (MA/FMA) Management Accounting
Chapter: 15 - Target setting
Syllabus Area: F - Performance measurement
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 16

Which of the following short-term objectives may involve the sacrifice of longer-term objectives?

Reducing training costs
Increasing quality control
Increasing capital expenditure projects

(ii) and (iii) only

(i), (ii) and (iii)

(i) only

(i) and (ii) only

2 / 16

In order for a business's strength to have a real benefit, it has to be linked to critical success factors.

What are critical success factors?

Factors necessary to match strengths to opportunities

Factors contributing to reduced costs

Factors necessary to build on strengths

Factors fundamental to strategic success

3 / 16

What is short-termism?

It is when there is a bias towards short term rather than long term performance

It is when non-financial performance indicators are used for measurement

It is when managers' performance is measured on long term results

It is when organisations sacrifice short term objectives

4 / 16

A financial services company benchmarks the performance of its IT department with that of a leading IT outsource company.

What type of benchmarking is the company using?

Strategic

Competitive

Internal

Functional

5 / 16

Market conditions and economic conditions can impact on performance measurement.

Which of the following statements are true?

The entry of a new competitor in the market will cause a business to examine sales performance measures more closely
General economic conditions can raise or lower overall demand and supply

(i) and (ii) are false

(i) is true and (ii) is false

(i) is false and (ii) is true

(i) and (ii) are true

6 / 16

Company A manufactures mobile phones. Staff employed within the Research & Development function at Company A have purchased a mobile phone manufactured by Company B for the purpose of reverse engineering.

What type of benchmarking is Company A using?

Functional

Competitive

Strategic

Internal

7 / 16

Which of the performance measures in the drop down list below is most likely to be recorded because of government regulations?

8 / 16

Which of the following BEST explains the relationship between mission statements and performance management?

To be of value, a performance measure must have an obvious link to the mission statement

Mission statements are a marketing tool and have no part to play in performance measurement

Mission statements include detailed performance standards that actual performance can be measured against

Performance measurement involves comparing actual performance against a target and the mission statement represents the organisation's overall target

9 / 16

In general terms, which of the following elements should organisations include in their mission statements?

Policies and standards of behaviour
Values – a description of the culture, assumptions and beliefs regarded as important to those managing the business
Profitability
Strategy – the commercial logic for the business, defining the nature of the business

(iii) and (iv) only

(i), (ii) and (iv) only

(ii) and (iv) only

(i) and (ii) only

10 / 16

Which of the following are suitable measures of performance at the strategic level?

Machine idle time
Employee sick days
Return on capital employed

(i) and (ii)

(iii) only

(ii) only

(ii) and (iii)

11 / 16

Which of the following describes the role of strategic objectives?

'Middle tier' objectives to facilitate the planning and control of individual functions within the organisation

A clear vision of the organisation's reason for existing

Day-to-day performance targets related to the organisation's operations

Long-term objectives for the organisation as a whole

12 / 16

Which of the following describes the role of tactical objectives?

'Middle tier' objectives to facilitate the planning and control of individual functions within the organisation

Day-to-day performance targets related to the organisation's operations

A clear vision of the organisation's reason for existing

Long-term objectives for the organisation as a whole

13 / 16

What is 'short-termism'?

Prioritising short-term results above the organisation's long-term prospects

A management philosophy linked to TQM

A legitimate focus on short-term results

A belief that senior management have a duty to maximise profit

14 / 16

All of the following, except one, are sound principles for devising objectives in order to enact the corporate mission.

Which is the exception?

They should relate to a specified time period

They should be specific

They should be easily achievable

They should be observable or measurable

15 / 16

The following statements relate to benchmarking.

Which TWO statements are true?

The ultimate aim of benchmarking is to improve performance

Benchmarking must involve competitors to be effective

A danger of benchmarking is that inappropriate comparisons lead to incorrect conclusions

Benchmarking is essentially a cost cutting exercise

16 / 16

A company sells new, high quality motor vehicles in many countries around the world. Half way through the company's current financial year, the global economy unexpectedly goes in to recession.

What impact would the unexpected recession have on performance measurement relating to sales and revenue?

The impact of a recession on the sales of new, high quality motor vehicles cannot be predicted

No impact as a recession is unlikely to impact the sales and revenue of motor vehicles

Sales and revenue are likely to decrease in the second half of the year and performance should be measured in that context

Sales and revenue are likely to increase in the second half of the year and performance should be measured in that context