Top 150+ Solved Enterprise Performance Management (EPM) MCQ Questions Answer
Q. What is not included in a firm’s expenses?
a. Costs of goods sold
b. Depreciation
c. Interest expense
d. Dividends
Q. 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
a. Variable cost
b. Fixed cost
c. Transfer price
d. Full service cost
Q. When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is
a. Goal congruence
b. Planning and control
c. Responsibility accounting
d. Delegation of decision making
Q. Which of the following statements about performance management systems is not true?
a. Performance management systems are ineffective
b. They encourage a short-term view among managers
c. Recommendations are prescriptive and suggest one best way
d. They improve organisational performance in the long-term
Q. Which transfer pricing method will preserve the subunit autonomy?
a. Variable-cost pricing
b. Negotiated pricing
c. Cost-based pricing
d. Full-cost pricing
Q. Controllable costs, as used in a responsibility accounting system, consist of:
a. Only fixed costs.
b. Only direct materials and direct labor.
c. Those costs that a manager can influence in the time period under review.
d. Those costs about which a manager has some knowledge.Those costs that are influenced by parties external to the organization.
Q. Evaluation of Capital Budgeting Proposals is based on Cash Flows because:
a. Cash Flows are easy to calculate
b. Cash Flows are suggested by SEBI
c. Cash is more important than profit
d. None of the above
Q. Sale of machine of machine merchandising business is –
a. Capital receipt
b. Capital income
c. Revenue income
d. Revenue receipt
Q. What do we call a formal comparison of the actual costs and benefits of a project with original estimates?
a. Post-completion audit
b. Feedback audit
c. Cost-benefit analysis
d. Business scorecard report
Q. Compliance with the Standard of Auditing is the responsibility of
a. Management
b. Those charged with governance
c. Auditor
d. Audit committee
Q. Cost Audit is comprised in which of the following steps?
a. Verification, Review, Reporting
b. Planning, Review, Reporting
c. Review, Verification, Reporting
d. Planning, Conducting, Reporting
Q. The financial statements of the company shall be authenticated by
a. Chief executive officers even he is not the director
b. Chief financial officer only if he is director.
c. Chairperson only if he is authorized by the board.
d. Statutory Body
Q. The compares the dollar return generated by the firm to the return expected by the investors of the capital invested by them in the firm.
a. EBIT
b. EVA
c. ROI
d. DuPont Chart
Q. Which one of the following is a ‘lag’ performance indicator
a. Number of training hours per employee
b. Return on capital employed
c. Number of complaints received from customers
d. Output per employee
Q. Economic Value Addition was developed by
a. Stern & Stewart
b. Peter Drucker
c. Koontz & O'Donnel
d. Anthony & Govindrajan