BTF2

RB plc operates supermarkets. The company has identified that it will outperform its rivals if it always has the inventory of its 100 top-selling products in its shops. Availability of these items is RB plc's:

• Core competence.

• Target.

• Key performance indicator.

• Critical success factor.

What are KPIs (Key Performance Indicators) of a business?

• Measures of performance in areas critical for competitive advantage

• Standards for accounting practices

• Measures of employee productivity

• Targets for operational efficiency

What is one of the specific tasks of the finance function?

• Marketing strategy.

• Production planning.

• Human resource management.

• Recording financial transactions.

What aspect of IT does the finance function typically monitor?

• Key Performance Indicators (KPIs).

• Network security.

• Hardware maintenance.

• Software development.

What is the primary limitation of financial measures?

• Difficulty in industry comparison

• Lack of historical data

• Summarized information

• Inability to adapt to changing environments

Which of the following is NOT a type of performance measure?

• Activity

• Productivity

• Flexibility

• Profitability

What is the focus of measuring resource use in terms of efficiency?

• Being effective at minimum cost or controlling costs without losing operational effectiveness

• Achieving objectives regardless of costs

• Minimizing effectiveness to control costs

• Maximizing costs while achieving objectives

Regarding types of performance measures, "net margin of 10% on revenue of $100,000" is included in:

• Profitability measures.

• Solvency measures.

• Liquidity measures.

• Productivity measures.

TR plc's finance function must provide information to management on the company's balanced scorecard. This role is undertaken as part of TR plc's:

• Statutory audit requirement.

• Financial reporting function.

• Performance measurement system.

• Treasury management process.

How is profitability typically measured in relative terms?

• Revenue/Costs

• Revenue+Costs

• (Revenue-Costs)/Revenue

• Revenue-Costs