Which of the following is not a necessary quality of a key performance indicator?

A local authority has introduced an initiative which is intended to “achieve greater output for each unit of input”.

What is the objective of the initiative?

Which of the following is NOT a typical characteristic of a service?

Smithson Co is an insurance company. Recently there has been concern that too many quotations have been sent to clients either late or containing errors. The department concerned has responded that they are understaffed, and a high proportion of current staff have recently joined the department. The performance of this department is to be carefully monitored.

Which TWO of the following non-financial performance indicators would be an appropriate measure to monitor and improve the department’s performance?

In the last financial year, the operating profit margin of Grippa Co was 14.7% and asset turnover was 2.3 times.

What was the company’s return on capital employed for the financial year?

Cawlin Co provides a call centre service on behalf of a number of retailers. Operatives receive calls from customers who are experiencing problems in operating the products they have bought from the retailers. The managing director is seeking improved customer satisfaction. Customer satisfaction is measured by the number of customers who receive advice which leads to the correct operation of their equipment at the first point of contact. It has been suggested by the human resource manager that an incentive scheme should be introduced.

Which of the following targets is the most appropriate measure for the incentive scheme?

A.A reduction in the time taken to answer incoming calls

B.A decrease in the number of calls referred to a supervisor

C.A reduction in the average time taken to process each call

D.An increase in the number of calls processed

Lukers Co is structured on a functional basis. Two of the departments are purchasing and production. The directors wish to improve product quality, and are considering the introduction of an incentive scheme.

Which of the following performance measures would be an appropriate basis for the incentive scheme?

What do the following statements apply to?

- The relationship between utilisation of resources (inputs) and the output produced by those resources.

- Getting more output from each unit of input, or getting the same amount of output with fewer resources improves this relationship.

Which TWO of the following measures could most suitably be used to assess the customer perspective of the balanced scorecard approach for an insurance company?