Performance Management Quiz

How does performance management help in tracking?

• By tracking employee attendance

• By tracking management performance against targets

• By tracking the number of meetings held

• By tracking the number of projects completed

Which of the following is NOT a characteristic of effective performance measurement systems?

• Links to strategies and goals

• Recognizes controllability

• Embraces participation and empowerment

• Ignores strategies and goals

What is a key feature of effective performance measurement systems regarding the number of measures?

• Unlimited number of measures

• Limited number of measures

• Random number of measures

• Excessive number of measures

Effective performance measurement systems should be reported in which manner?

• In a delayed manner

• In a timely manner

• In an irregular manner

• In a random manner

In a decentralised organisation, who is responsible for operational and decision-making tasks?

• Top management

• Each unit

• External consultants

• Shareholders

What is one of the strategic benefits of decentralisation for corporate managers?

• They have less time for strategic issues

• They have more time for strategic issues

• They are more involved in day-to-day operations

• They have reduced responsibility

Which of the following statements is correct regarding transfer pricing?

• It is only relevant for centralised organisations.

• It is the price at which goods and services are sold to external customers.

• It is revenue for the supplying unit and cost for the buying unit.

• It is the price at which goods and services are bought from suppliers.

What does the term 'transfer price' refer to in the context of a decentralised organisation?

• The price at which goods and services are sold to external customers.

• The price at which goods and services are bought from suppliers.

• The internal selling price used when goods and services are transferred within the organisation.

• The price at which goods and services are sold to centralised organisations.