题目

 Which of the following best describes a ‘basic standard’ within the context of budgeting? 

A

 A standard which is kept unchanged over a period of time 

B

 A standard which is based on current price levels 

C

 A standard set at an ideal level, which makes no allowance for normal losses, waste and machine downtime  

D

 A standard which assumes an efficient level of operation, but which includes allowances for factors such as normal loss, waste and machine downtime 

Chapter10Budgetingandstandardcosting

Option B is a current standard, option C is an idea standard and option D is an attainable standard. 

多做几道

 A government is trying to assess schools by using a range of financial and non-financial factors. One of the chosen methods is the percentage of students passing five exams or more. 

Which of the three Es in the value for money framework is being measured here? 

A

 Economy 

B

 Efficiency 

C

 Effectiveness 

D

 Expertise 

The following statements have been made about measuring performance in not-for-profit organisations: 

(1) Output does not usually have a market value, and it is therefore more difficult to measure effectiveness. 

(2) Control over the performance can only be satisfactorily achieved by assessments of ‘value for money’. 

Which of the above statements is/are true? 

A

 (1) only 

B

 (2) only 

C

 Neither (1) nor (2) 

D

 Both (1) and (2) 

The senior manager is suspicious of a local manager’s accounts and thinks that the profit performance may have been overstated.    

Which of the following would be a plausible explanation of an overstatement of profit? 

A

 Delaying payments to payables 

B

 Shortening the useful economic life of a non-current asset 

C

Overstatement of a prepayment 

D

Overstatement of an accrual 

Which of the following statements regarding standard setting is correct? 

A

 Imposed standards are more likely to be achieved 

B

Managers across the organisation should be targeted using the same standards 

C

Standards should be set at an ideal level with no built in stretch 

D

 Participation in standard setting is more motivating than where standards are imposed 

When setting performance measurement targets it should be considered that there is the possibility that managers will take a short term view of the company and may even be tempted to manipulate results in order to achieve their targets.   

Which of the following would assist in overcoming the problems of short-termism and manipulation of results? 

A

 Rewards should be linked to a wider variety of performance measures including some nonfinancial measures 

B

 Managers should only be rewarded for the results achieved in their own departments 

C

 Any capital investment decision should be judged using the payback method of investment appraisal 

D

 Setting targets involving the overall performance of the company will be more motivating for managers 

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