Business Foundation - KPI

Which of the following is a financial KPI?

• Rate of staff turnover

• Level of wastage

• Net profit

• Number of website hits

What is KPI?

• Key Performance Index
• Key Project Indicator
• Key Performance Indicator

• Key Process Insight

Which KPI is most suitable for evaluating customer satisfaction?

• Number of sales

• Number of complaints

• Net profit

• Staff absenteeism

A KPI that tracks how many products are thrown away is called:

• Productivity rate

• Customer retention

• Level of wastage

• Sales volume

What is a benefit of using KPIs in business?

• Increase in taxes

• Helps monitor performance

• Avoids competition

• Reduces customer loyalty

Which of the following best describes a high level of staff turnover?

• Staff are highly productive and meet all deadlines

• Staff rarely take sick days

• Many employees leave the business over a short period

• Employees receive frequent promotions and pay rises

Which statement best explains the difference between efficiency and effectiveness when using KPIs?

• Efficiency is about reducing profit, effectiveness is about customer growth

• Efficiency is how well resources are used, effectiveness is how well goals are achieved

• Efficiency focuses on marketing only, effectiveness focuses on finance

• Efficiency means more sales, effectiveness means less cost

Which of the following is an efficiency KPI?

• Number of customer complaints

• Rate of productivity growth

• Number of workplace accidents

• Net profit

An increase in staff absenteeism may indicate:

• a) Higher sales

• b) Lower net profit

• c) Decreased staff morale

• d) Higher productivity

Which KPI would help a business understand its online reach?

• a) Net profit

• b) Number of website hits

• c) Customer complaints

• d) Sales volume