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Best Enterprise Performance Management (EPM) MCQ with Answer

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Enterprise Performance Management (EPM) MCQ Multiple Choice Questions

  • Capital Budgeting Decisions are:
    A) Reversible
    B) Irreversible
    C) for short term
    D) involves small amount
    Answer: B. Irreversible
  • Capital Budgeting Decisions are:
    A. Reversible
    B. Irreversible
    C. for short term
    D. involves small amount
    Answer: B. Irreversible
  • Which of the following is not incorporated in Capital Budgeting?
    A) Tax-Effect
    B) Time Value of Money
    C) Required Rate of Return
    D) Rate of Cash Discount
    Answer: D. Rate of Cash Discount
  • PERT / CPM have to be used for proper ……………….. of all projects
    A) planning
    B) controlling
    C) staffing
    D) coordinating
    Answer: B. controlling
  • BSC is important for ………
    A) creating strategy
    B) controlling strategy
    C) evaluating the performance of a strategy
    D) mapping strategy
    Answer: C. evaluating the performance of a strategy
  • Classification of responsibility center is based on the nature of the monetary ……………
    A) Inputs and/or outputs
    B) Inputs and outputs
    C) Inputs only
    D) Outputs only
    Answer: A) Inputs and/or outputs
  • Discretionary expenses are expenses ………
    A) that do not create value
    B) that do not hamper the operations immediately
    C) that are completely unnecessary
    D) that are necessary
    Answer: B) that do not hamper the operations immediately
  • For the board of directors of the company, the entire company is a ……………….
    A) Profit center
    B) Expense center
    C) Responsibility center
    D) Investment center
    Answer: C) Responsibility center
  • In a revenue center the primary measurement is ………………….
    A) Output in physical terms
    B) Input in cost terms
    C) Revenue
    D) Cost incurred by center
    Answer: C) Revenue
  • In case of discretionary expense center, the financial center is primarily exercised at ………. Stage. A) Implementation
    B) Quality control
    C) Output
    D) Planning
    Answer: D) Planning
  • In case of revenue center the output is measured in ……………. terms, but no formal attempt is made to relate ……………….
    A) Physical, quantity and quality
    B) Monetary, efficiency and effectiveness
    C) Monetary, input and output
    D) Monetary, output only
    Answer: C) Monetary, input and output
  • In financial performance measurement most important is ……………
    A) EVA
    B) ROI
    C) Profit Margin
    D) MVA
    Answer: A) EVA
  • Performance management is …………….
    A) Strategic tool
    B) Re-engineering tool
    C) Business process
    D) Strategic management tool
    Answer: C) Business process
  • Profit centre profit is calculated ……….
    A) before debiting Corporate overheads
    B) after debiting corporate overheads
    C) without considering corporate overheads
    D) along with corporate overhead
    Answer: B) after debiting corporate overheads
  • A major part of strategy implementation is …….
    A) Planning
    B) Communication
    C) Resource allocation
    D) Monitoring
    Answer: C) Resource allocation
  • The Enterprise Performance Management core processes does not include which of the following?
    A) Financial Planning
    B) Operational Planning
    C) Business Analytics
    D) Consolidation and Reporting
    Answer: C) Business Analytics
  • The Malcolm Baldrige Award is awarded by the Government of ……….
    A) Japan
    B) Russia
    C) U.K.
    D) U.S.A)
    Answer: D) U.S.A)
  • The responsibility center whose inputs are measured in monetary terms, but whose output is not, is ………………..
    A) Revenue center
    B) Expense center
    C) Profit center
    D) Investment center
    Answer: B) Expense center
  • Two step transfer prices depend on ……………….
    A) ROI requirement
    B) profit requirement
    C) corporate profit requirement
    D) SBU profit requirement
    Answer: C) corporate profit requirement
  • Which of the following does not belong to the category of quantitative performance indicators?
    A) Number of
    B) Proportion of
    C) Levels of
    D) Amount of
    Answer: C) Levels of
  • Which of the following is correct? ROI =
    A) Income / Asset employed
    B) Revenue / Asset employed
    C) Cost / Revenue
    D) Profit / No. of shares outstanding
    Answer: A) Income / Asset employed
  • Which of the following is not a financial performance measure?
    A) Opening cash flow
    B) Return on assets
    C) Market Cap
    D) Market share/growth
    Answer: D) Market share/growth
  • Which of the following is not an entity with reference to Baldrige Criteria / Framework?
    A) Team Focus
    B) Customer Focus
    C) Operations Focus
    D) Work Force Focus
    Answer: A) Team Focus
  • The selective and analytical approach to control investment in various types of inventories is known as ……………………………
    A) ABC Analysis
    B) Gross Margin Return on Investment (GMROI)
    C) Multiple Attribute Method
    D) Sell Through Analysis
    Answer: A) ABC Analysis
  • The Sell Through Analysis is not about ………………………
    A) Sales
    B) Inventory/ Sales Turn Over
    C) Sales Velocity
    D) Merchandise Management
    Answer: A) Sales
  • The Non-profit Organization focus more on ………..
    A) Social welfare/interests
    B) Surplus generation
    C) Funds mobilization
    D) Governance
    Answer: A) Social welfare/interests
  • The time the activity would take if things did not go well is known as
    A) Pessimistic time
    B) Most likely time
    C) Optimistic time
    D) Average time
    Answer: A) Pessimistic time
  • Which of the following is responsible for establishing a private company’s internal control?
    A) Management
    B) Auditors
    C) Management and auditors
    D) Committee of Sponsoring Organizations
    Answer: A) Management
  • A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a(n)
    A) Cost center
    B) Revenue center
    C) Profit center
    D) Investment center
    Answer: D) Investment center
  • In the balanced scorecard approach quality would come under which perspective?
    A) The internal perspective
    B) The customer perspective
    C) The financial perspective
    D) The innovation and learning perspective
    Answer: A) The internal perspective
  • Performance management is believed to have originated from which country?
    A) Japan
    B) France
    C) Denmark
    D) USA
    Answer: D) USA
  • The overall purpose of the balanced scorecard approach is to:
    A) Help turn strategy into action
    B) Benchmark against competitors
    C) Measure financial performance
    D) Measure product quality
    Answer: A) Help turn strategy into action
  • The process of evaluating an employee’s current and/or past performance relative to his or her performance standards is called
    A) recruitment
    B) employee selection
    C) performance appraisal
    D) organizational development
    Answer: C) performance appraisal
  • The term ‘EVA’ is used for:
    A) Extra Value Analysis
    B) Economic Value Added
    C) Expected Value Analysis
    D) Engineering Value Analysis
    Answer: B) Economic Value Added
  • The U.S. National Quality Award is named after
    A) Joseph Juran
    B) Genichi Taguchi
    C) W. Edwards Deming
    D) Malcolm Baldrige
    Answer: D) Malcolm Baldrige
  • Which of the following statements is false? Balanced scorecards
    A) Are one type of performance dashboard
    B) Can be cascaded to different levels/parts of organisations
    C) Cannot be used in conjunction with budgetary control systems
    D) Can be used to produce strategy maps
    Answer: C) Cannot be used in conjunction with budgetary control systems
  • Which of the following statements regarding flaws suffered by financial measures is not correct:
    A) They are hard to quantify
    B) They do little to motivate employees to improve accounting profits
    C) They are not effective in getting managers’ attention
    D) They are useful in identifying operational problems
    Answer: D) They are useful in identifying operational problems
  • Which of the following variable does ROI examine?
    A) EBIT
    B) EVA
    C) ROI
    D) DuPont chart
    Answer: B) EVA
  • A sound Capital Budgeting technique is based on:
    A) Cash Flows
    B) Accounting Profit
    C) Interest Rate on Borrowings
    D) Last Dividend Paid
    Answer: A) Cash Flows
  • Capital Budgeting deals with:
    A) Long-term Decisions,
    B) Short-term Decisions
    C) Both (a) and (b)
    D) Neither a) nor (b)
    Answer: A) Long-term Decisions
  • Capital Budgeting Decisions are based on:
    A) Incremental Profit
    B) Incremental Cash Flows
    C) Incremental Assets,
    D) Incremental Capital.
    Answer: B) Incremental Cash Flows
  • Capital Budgeting is a part of:
    A) Investment Decision
    B) Working Capital Management
    C) Marketing Management
    D) Capital Structure
    Answer: A) Investment Decision
  • Which of the following is not applied in capital budgeting?
    A) Cash flows be calculated in incremental terms
    B) All costs and benefits are measured on cash basis
    C) All accrued costs and revenues be incorporated
    D) All benefits are measured on after-tax basis
    Answer: C) All accrued costs and revenues be incorporated
  • Which of the following is not followed in capital budgeting?
    A) Cash flows Principle
    B) Interest Exclusion Principle
    C) Accrual Principle
    D) Post-tax Principle
    Answer: C) Accrual Principle
  • Which of the following is not true for capital budgeting?
    A) Sunk costs are ignored
    B) Opportunity costs are excluded
    C) Incremental cash flows are considered
    D) Relevant cash flows are considered
    Answer: B) Opportunity costs are excluded
  • Which of the following is not used in Capital Budgeting?
    A) Time Value of Money
    B) Sensitivity Analysis
    C) Net Assets Method
    D) Cash Flows
    Answer: B) Sensitivity Analysis
  • Which one is the Capital Expenditure?
    A) Capital invested by the owner
    B) Selling expense for machine
    C) Machine purchased
    D) Daily expenses to operate business
    Answer: C) Machine purchased
  • Who among the following have the authority to inspect the books of accounts?
    A) Directors
    B) Members
    C) Officer of Sebi
    D) Both (a) and (c)
    Answer: D) Both (a) and (c)
  • Under responsibility accounting, the evaluation of a manager’s performance is based on matters that the manager:
    A) Directly controls
    B) Directly and indirectly controls
    C) Indirectly controls
    D) Has shared responsibility for with another manager
    Answer: A) Directly controls
  • Return on Assets and Return on Investment Ratios belong to:
    A) Liquidity Ratios
    B) Profitability Ratios
    C) Solvency Ratios
    D) Turnover
    Answer: B) Profitability Ratios
  • ………….. costs are not easily changed and are often fixed, for ex, once a company has decided to rent a place.
    A) Committed
    B) Discretionary
    C) Engineered
    D) Marginal
    Answer: A) Committed
  • Management by objective is the process in which
    A) Top management sets objectives for the sub- ordinate managers
    B) Budgeteer proposes to accomplish specific jobs and prepares budget for it.
    C) A manager decides his own area of operations and prepares budget for it.
    D) Budget is not prepared at all.
    Answer: B) Budgeteer proposes to accomplish specific jobs and prepares budget for it.
  • Return on Assets (ROA) ratio is given by which of the following?
    A) Net Income/ Sales
    B) Sales / Total Assets
    C) Net Income/ Total Assets
    D) Gross Margin/ Net Sales
    Answer: C) Net Income/ Total Assets
  • The Strategic Business Unit evolved during the ………………………
    A) 1970s & 1980s
    B) 1990s
    C) 1960s
    D) 21st Century
    Answer: A) 1970s & 1980s
  • The strategic Business Unit evolved from …………………
    A) Hierarchy- based structure of organization
    B) Function based structure of organization
    C) Territorial structure of organization
    D) Divisional structure of organization
    Answer: D) Divisional structure of organization
  • There are four elements of Anthony’s model. Which one does not belong to the group?
    A) Detector
    B) Assessor
    C) Effecter
    D) Rejecter
    Answer: D) Rejecter
  • Total control over discretionary expense center is achieved primarily through ……… performance measures.
    A) Financial
    B) Non-financial
    C) Objective based
    D) Output based
    Answer: B) Non-financial
  • Which of the following areas is not covered under the Baldrige Award?
    A) Education
    B) Health Care
    C) Small Business
    D) Multi National Corporation (MNC)
    Answer: D) Multi National Corporation (MNC)
  • Which of the following is an example of lead indication?
    A) Market share
    B) Net profit
    C) Gross margin
    D) ROI
    Answer: A) Market share
  • If project A has a lower payback period than project B, this may indicate that project A may have a …………….
    A) Lower NPV and be less profitable
    B) Higher NPV and be less profitable
    C) Higher NPV and be more profitable
    D) Lower NPV and be more profitable
    Answer: C) Higher NPV and be more profitable
  • The primary capital budgeting method that uses discounted cash flow techniques is the ……….
    A) Net present value method
    B) Cash payback technique
    C) Annual rate of return method
    D) Profitability index method
    Answer: A) Net present value method
  • Which of the following ignores the time value of money?
    A) Internal rate of return
    B) Profitability Index
    C) Net present value
    D) Cash payback
    Answer: D) Cash payback
  • Which of the following is not true? Asset employed is equal to
    A) Non-current liabilities+ shareholder’s equity
    B) Total assets – current liabilities
    C) Non-current assets+ working capital
    D) Shareholder’s equity–current liabilities
    Answer: D) Shareholder’s equity–current liabilities
  • As asset becomes Non Performing after default of ……………………
    A) 180 days
    B) 60 days
    C) 90 days
    D) 91 days
    Answer: C) 90 days
  • As per the RBI guidelines banks have to make sure that out of their loan assets loans are given to Priority Sector.
    A) 20%
    B) 40%
    C) 50%
    D) 45%
    Answer: B) 40%
  • The capital adequacy ratio to be maintained by public sector banks in India is ……………….
    A) 8%
    B) 10%
    C) 10.5%
    D) 12%
    Answer: D) 12%
  • The Retailer is selling the merchandise for more than it costs the Retailer to acquire it, then the GMROI Ratio would be ……………………
    A) Higher than 1
    B) Equal to 1
    C) Less than 1
    D) Equal to 3.2
    Answer: A) Higher than 1
  • Which of the following do not fall under Financial inclusion ?
    A) Nationalization of Banks
    B) Public Sector Lending targets
    C) Zero Balance Accounts
    D) Education at affordable cost
    Answer: D) Education at affordable cost
  • While calculating the Gross Margin Ratio on Investment (GMROI), the TWO important aspects are:
    A) Stock on Hand and Stock-Outs incidents
    B) Gross Margin and Average Inventory Cost
    C) Gross Revenue and Stock on Hand
    D) Carrying Costs and Stock-Out Costs
    Answer: B) Gross Margin and Average Inventory Cost
  • Assembling project team and assigning their responsibilities are done during which phase of project management?
    A) Project Planning
    B) Project Initiation
    C) Project Controlling
    D) Project Execution
    Answer: B) Project Initiation
  • PERT is the
    A) Time oriented technique
    B) Event oriented technique
    C) Activity oriented technique
    D) Target oriented technique
    Answer: B) Event oriented technique
  • Which of the following is not one of the eight specific principles of Social Audit?
    A) Comprehensive
    B) Comparative
    C) Multi-directional
    D) Non-Participatory
    Answer: D) Non-Participatory
  • Which of the following statement about NPOs is not true?
    A) The NPOs generally tend to be service organisations
    B) The NPOs receive ‘Contributed Capital’ and have no shareholders
    C) The sources of funds for NPOs are more or less captive
    D) The NPOs are subjected to Market Mechanism
    Answer: D) The NPOs are subjected to Market Mechanism
  • Which is not a primary objective of audit?
    A) Detection and Prevention of Errors
    B) Examining the System of internal check
    C) Verifying the authenticity and validity of transactions
    D) Confirming the existence and value of assets and liabilities
    Answer: A) Detection and Prevention of Errors
  • Which of the following area is not covered by management audit?
    A) System and Procedures
    B) Board’s / Directors Analysis
    C) Research and development
    D) New product development cycle time
    Answer: D) New product development cycle time
  • Which of the following area is specially covered by Management Audit?
    A) Economic Contribution Analysis
    B) Cost-Benefit Analysis
    C) Social Cost-Benefit Analysis
    D) Sensitivity Analysis
    Answer: A) Economic Contribution Analysis
  • Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
    A) The Shareholders in a general meeting
    B) The Managing director
    C) The board of directors in board meeting
    D) The audit committee
    Answer: A) The Shareholders in a general meeting
  • A Balanced Scorecard helps the organisation to:
    A) Be ready and prepared to implement an ERP
    B) Be focus on all the relevant business perspectives
    C) Integrate strategy and key challenges
    D) Communicate better with staff
    Answer: B) Be focus on all the relevant business perspectives
  • A cost center manager
    A) Does not have the ability to produce revenue
    B) May be involved with the sale of new marketing programs to clients.
    C) Would normally be held accountable for producing an adequate return on invested capital.
    D) Often oversees divisional operations
    Answer: A) Does not have the ability to produce revenue
  • According to DuPont analysis, increase in the profit margin (all else constant) should
    A) Increase both ROE and ROA
    B) Increase ROE but not ROA
    C) Increase ROA but not ROE
    D) Increase neither ROA nor ROE
    Answer: A) Increase both ROE and ROA
  • DU PONT Analysis deals with
    A) Analysis of Current Assets
    B) Analysis of Profit
    C) Capital Budgeting
    D) Analysis of Fixed Assets
    Answer: B) Analysis of Profit
  • If return on investment is a measure used on the balanced scorecard, under which perspective would it be listed
    A) Financial perspective
    B) Customer perspective
    C) Learning and growth perspective
    D) Internal business perspective
    Answer: A) Financial perspective
  • Pitfalls exists the same as with any new technology or management tool. All of the following describe these pitfalls except
    A) Some companies use too few measures in their score
    B) Some companies include too many measures
    C) A poor scorecard is the biggest threat and one of the dangerous pitfalls
    D) Some companies do not know how to implement the effective drivers of performance
    Answer: C) A poor scorecard is the biggest threat and one of the dangerous pitfalls
  • Responsibility centers include
    A) Adjustment centers
    B) Call centers
    C) Exam centers
    D) Profit center
    Answer: D) Profit center
  • Responsibility reports for cost centers
    A) Distinguish between fixed and variable costs
    B) Use static budget data
    C) Include both controllable and non-controllable costs
    D) Include only controllable costs
    Answer: D) Include only controllable costs
  • Return on Investment may be improved by one of these
    A) Increasing Turnover
    B) increasing Expenses
    C) decreasing Capital Utilization
    D) over budgeting
    Answer: A) Increasing Turnover
  • ROI can be viewed as a function of the net profit margin times
    A) Sales.
    B) EAT.
    C) The total asset turnover
    D) Equity multiplier
    Answer: C) The total asset turnover
  • The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is:
    A) Financial measures
    B) Employee satisfaction measures
    C) Customer satisfaction measures
    D) Technological innovation measures
    Answer: B) Employee satisfaction measures
  • The drive in world markets to produce superior goods has led some countries to recognize or award prizes. What is the name of U.S. prize for developing quality products:
    A) the Deming Prize
    B) Malcolm Baldridge National Quality Award
    C) the J.D Power Award
    D) the K.C Irving Quality Award
    Answer: B) Malcolm Baldridge National Quality Award
  • The following are basic elements in which Continuous Improvement framework (leadership; planning; service orientation; information and analysis; employees and workplace climate; process management; excellence levels and trends
    A) Six Sigma
    B) Total Quality Management (TQM)
    C) Zero Defect
    D) Malcolm Baldridge Quality Award
    Answer: D) Malcolm Baldridge Quality Award
  • What is a measure of operating performance that indicates how successful the firm has been at increasing its MVA in a given year.
    A) Economic value added (EVA)
    B) After-tax cash flow (ATCF)
    C) Earnings after taxes (EAT)
    D) Market value added (MVA)
    Answer: A) Economic value added (EVA)
  • What is not included in a firm’s expenses?
    A) Costs of goods sold
    B) Depreciation
    C) Interest expense
    D) Dividends
    Answer: D) Dividends
  • What is the term used to describe the value assigned to the goods or services sold or rented from one unit of an organization to another
    A) Variable cost
    B) Fixed cost
    C) Transfer price
    D) Full service cost
    Answer: C) Transfer price
  • When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is
    A) Goal congruence
    B) Planning and control
    C) Responsibility accounting
    D) Delegation of decision making
    Answer: A) Goal congruence
  • Which of the following statements about performance management systems is not true?
    A) Performance management systems are ineffective
    B) They encourage a short-term view among managers
    C) Recommendations are prescriptive and suggest one best way
    D) They improve organisational performance in the long-term
    Answer: D) They improve organisational performance in the long-term
  • Which transfer pricing method will preserve the subunit autonomy?
    A) Variable-cost pricing
    B) Negotiated pricing
    C) Cost-based pricing
    D) Full-cost pricing
    Answer: B) Negotiated pricing
  • Controllable costs, as used in a responsibility accounting system, consist of:
    A) Only fixed costs.
    B) Only direct materials and direct labor.
    C) Those costs that a manager can influence in the time period under review.
    D) Those costs about which a manager has some knowledge. Those costs that are influenced by parties external to the organization.
    Answer: C) Those costs that a manager can influence in the time period under review.
  • Evaluation of Capital Budgeting Proposals is based on Cash Flows because:
    A) Cash Flows are easy to calculate
    B) Cash Flows are suggested by SEBI
    C) Cash is more important than profit
    D) None of the above
    Answer: C) Cash is more important than profit
  • Sale of machine of machine merchandising business is –
    A) Capital receipt
    B) Capital income
    C) Revenue income
    D) Revenue receipt
    Answer: D) Revenue receipt
  • What do we call a formal comparison of the actual costs and benefits of a project with original estimates?
    A) Post-completion audit
    B) Feedback audit
    C) Cost-benefit analysis
    D) Business scorecard report
    Answer: A) Post-completion audit
  • Compliance with the Standard of Auditing is the responsibility of
    A) Management
    B) Those charged with governance
    C) Auditor
    D) Audit committee
    Answer: C) Auditor
  • Cost Audit is comprised in which of the following steps?
    A) Verification, Review, Reporting
    B) Planning, Review, Reporting
    C) Review, Verification, Reporting
    D) Planning, Conducting, Reporting
    Answer: C) Review, Verification, Reporting
  • The financial statements of the company shall be authenticated by
    A) Chief executive officers even he is not the director
    B) Chief financial officer only if he is director.
    C) Chairperson only if he is authorized by the boarD)
    D) Statutory Body
    Answer: C) Chairperson only if he is authorized by the boarD)
  • The compares the dollar return generated by the firm to the return expected by the investors of the capital invested by them in the firm.
    A) EBIT
    B) EVA
    C) ROI
    D) DuPont Chart
    Answer: B) EVA
  • Which one of the following is a ‘lag’ performance indicator
    A) Number of training hours per employee
    B) Return on capital employed
    C) Number of complaints received from customers
    D) Output per employee
    Answer: B) Return on capital employed
  • Economic Value Addition was developed by
    A) Stern & Stewart
    B) Peter Drucker
    C) Koontz & O’Donnel
    D) Anthony & Govindrajan
    Answer: A) Stern & Stewart
  • The Tata Group of Industries have modified and internalised the Baldridge Criteria and is known as the
    A) Porter Prize for Excellence
    B) Jamsetji Tata Award
    C) Tata Business Excellence Model (TBEM)
    D) Annual Awards of Business Excellence (AABE)
    Answer: C) Tata Business Excellence Model (TBEM)
  • Which of the following pair about Paradigm Shifts in the contemporary Business Environment is incorrect?
    A) Control to Decontrol
    B) Competition to Opening Up
    C) Production to Marketing
    D) Volume to Profit
    Answer: B) Competition to Opening Up
  • Intangible benefits in capital budgeting would include all of the following except increased …..…..
    A) Product quality
    B) Employee loyalty
    C) Salvage value
    D) Product safety
    Answer: C) Salvage value
  • Which of the following is not typical cash flow related to equipment purchase and replacement decision?
    A) Increase operating costs
    B) Overhaul of equipment
    C) Salvage value of equipment when project is complete
    D) Depreciation expense
    Answer: D) Depreciation expense
  • As per the RBI Internationals Banks have to maintain a Capital Adequacy Ratio of
    A) 8%
    B) 9%
    C) 12%
    D) 10%
    Answer: B) 9%
  • Which of the following is not a part of loan assets classification
    A) Standard Assets
    B) Earning Assets
    C) Loss Assets
    D) Doubtful Assets
    Answer: B) Earning Assets
  • Earliest finish time can be regarded as
    A) Earliest start time + duration of activity
    B) Earliest start time duration of activity
    C) Latest finish time + duration of activity
    D) Latest finish time duration of activity
    Answer: A) Earliest start time + duration of activity
  • The first use of the term “Social Audit” is generally attributed to ………………
    A) Peter Drucker
    B) George Coyder
    C) Charles Medawar
    D) Amartya Sen
    Answer: B) George Coyder
  • The stipulations as regards maintenance of accounts of / by NGOs / NPOs are stipulated by which of the following?
    A) The Societies Registration Act
    B) The Public Trust Act
    C) The Companies Act
    D) The Indian Trust Act
    Answer: D) The Indian Trust Act
  • PERT is based on the assumption that an activity’s duration follows
    A) Binomial Distribution
    B) Probability Distribution
    C) Uniform Distribution
    D) Exponential Distribution
    Answer: B) Probability Distribution
  • of the Companies Act, 2013 provides that the Internal Auditor shall be a Chartered Accountant or a Cost Accountant or any other professional as may be decided by the Board of Directors.
    A) Section 148
    B) Section 138
    C) Section 142
    D) Section 146
    Answer: B) Section 138
  • Cost Audit is applicable in case of the companies falling under certain specific categories of industries and for those companies who have been asked by the central government to maintain the cost accounting records and get these cost accounting records audited as per the provisions of of the Companies Act, 2013
    A) Section 148
    B) Section 138
    C) Section 142
    D) Section 146
    Answer: A) Section 148
  • Section 139 provides that the first auditor of the company shall be appointed by Board of Directors of the company within days
    A) 60
    B) 30
    C) 120
    D) 45
    Answer: B) 30
  • International auditing standards are issued by the:
    A) International Accounting Standard Board
    B) Financial Accounting Audit Board
    C) International Audit and Assurance Standards Board
    D) Auditing Practices Board
    Answer: C) International Audit and Assurance Standards Board
  • In a responsibility report for a profit center, controllable fixed costs are deducted from contribution margin to show:
    A) Profit center margin
    B) Controllable margin
    C) Net income
    D) Income from operations
    Answer: B) Controllable margin
  • Internal Perspective is part of the Complete Balanced Scorecard Strategy. This is a correct sub item for this perspective
    A) Regulatory and Society Theme
    B) Customer solutions
    C) Strategic Technologies
    D) Revenue Growth Strategy
    Answer: A) Regulatory and Society Theme
  • Learning & Growth Perspective: role for intangible assets — people, systems, climate and culture is part of the BSC Strategy. Identify which of the following is a sub item of Learning & Growth Perspective
    A) Improve shareholder value
    B) Low total cost
    C) Operations theme
    D) Strategic technologies
    Answer: D) Strategic technologies
  • Which of the following would have a low likelihood of being organized as a profit center?
    A) A maintenance department that charges users for its services
    B) The billing department of an Internet Services Provider (ISP).
    C) The mayor’s office in a large city
    D) Both “C” and “D” above.
    Answer: D) Both “C” and “D” above.
  • Cash Inflows from a project include
    A) Tax Shield of Depreciation
    B) After-tax Operating Profits
    C) Raising of Funds
    D) Both (a) and (b).
    Answer: C) Raising of Funds
  • If capital expense is recorded as revenue expense then which calculation will be wrong?
    A) Bank balance
    B) Debtors
    C) Creditors
    D) Net profit
    Answer: D) Net profit
  • In Capital Budgeting, Sunk cost is excluded because it is
    A) Of Small Amount
    B) Not Incremental
    C) Not Reversible
    D) Reversible
    Answer: B) Not Incremental
  • Which of the following is not a capital budgeting decision?
    A) Expansion Programme
    B) Merger
    C) Replacement of an Asset
    D) Inventory Level
    Answer: D) Inventory Level

Here are some sample multiple choice questions (MCQs) related to Enterprise Performance Management (EPM):

ERP Multiple Choice Questions and Answers

  1. What is Enterprise Performance Management (EPM)?
    A) A software used for project management
    B) A system to manage and measure an organization’s performance
    C) An enterprise resource planning (ERP) tool
    D) A customer relationship management (CRM) solution
    Answer: B
  2. EPM encompasses which of the following areas?
    A) Human Resources
    B) Sales and Marketing
    C) Financial Planning, Budgeting, and Forecasting
    D) Inventory Management
    Answer: C
  3. What is the primary goal of Enterprise Performance Management?
    A) Increasing employee satisfaction
    B) Maximizing shareholder value
    C) Reducing operational costs
    D) Enhancing brand awareness
    Answer: B
  4. Which EPM process involves outlining an organization’s long-term direction and goals?
    A) Budgeting
    B) Forecasting
    C) Strategic Planning
    D) Reporting and Analysis
    Answer: C
  5. What is the key benefit of EPM systems for organizations?
    A) Automation of customer support
    B) Real-time monitoring of social media
    C) Enhanced collaboration among employees
    D) Improved decision-making based on accurate data
    Answer: D
  6. What does KPI stand for in the context of EPM?
    A) Key Performance Index
    B) Key Performance Indicator
    C) Key Process Index
    D) Key Planning Indicator
    Answer: B
  7. Which EPM component involves comparing actual performance with planned targets?
    A) Reporting and Analysis
    B) Forecasting
    C) Budgeting
    D) Strategy Execution
    Answer: A
  8. EPM software typically integrates with which other types of systems?
    A) Human Resource Management Systems (HRMS)
    B) Enterprise Resource Planning (ERP) Systems
    C) Customer Relationship Management (CRM) Systems
    D) Supply Chain Management (SCM) Systems
    Answer: B
  9. Which EPM process involves creating detailed financial plans for future periods?
    A) Reporting and Analysis
    B) Forecasting
    C) Budgeting
    D) Strategy Execution
    Answer: C
  10. EPM facilitates communication and accountability within an organization by:
    A) Automating all decision-making processes
    B) Providing real-time financial news updates
    C) Aligning individual goals with organizational objectives
    D) Creating complex financial models for forecasting
    Answer: C
  11. What is the purpose of the EPM process called “Strategy Execution”?
    A) Identifying potential risks and threats to the organization
    B) Implementing strategic initiatives to achieve goals
    C) Generating financial statements for regulatory compliance
    D) Collecting customer feedback and reviews
    Answer: B
  12. Which of the following statements about EPM is true?
    A) EPM only focuses on short-term financial goals.
    B) EPM is primarily used by small startups and not large enterprises.
    C) EPM systems are standalone and do not integrate with other software.
    D) EPM helps align an organization’s strategies with its operational plans.
    Answer: D
  13. The “Balanced Scorecard” methodology in EPM aims to:
    A) Measure the time spent on each task in a project
    B) Evaluate the performance of individual employees
    C) Provide a comprehensive view of an organization’s performance from multiple perspectives
    D) Identify potential bottlenecks in the supply chain
    Answer: C
  14. In EPM, what does the acronym “OLAP” stand for?
    A) Online Analytical Processing
    B) Operational Language for Accounting and Planning
    C) Organizational Leadership and Performance
    D) Order, Logistics, and Procurement
    Answer: A
  15. What is the main advantage of using cloud-based EPM solutions?
    A) Reduced data security and privacy risks
    B) Limited accessibility from remote locations
    C) Lower maintenance costs compared to on-premises solutions
    D) Slower data processing and analysis capabilities
    Answer: C

Practice EPM MCQ

Here’s a set of sample Enterprise Performance Management (EPM) Multiple-Choice Questions (MCQ) for practice:

Enterprise Performance Management (EPM) MCQ with Answer

  1. What is the primary objective of Enterprise Performance Management?
    a) Maximizing shareholder value
    b) Achieving long-term strategic goals
    c) Minimizing operational costs
    d) Enhancing employee satisfaction
  2. Which component of EPM involves defining an organization’s mission and vision?
    a) Forecasting and Modeling
    b) Performance Measurement and Analysis
    c) Strategy Formulation
    d) Risk Management
  3. Which EPM process involves allocating resources and setting performance targets?
    a) Planning and Budgeting
    b) Business Intelligence and Analytics
    c) Collaboration and Communication
    d) Consolidation and Reporting
  4. What is the primary purpose of EPM consolidation and reporting?
    a) Identifying market trends
    b) Assessing potential risks
    c) Streamlining business processes
    d) Providing insights into performance metrics
  5. Which of the following is a key benefit of EPM software solutions?
    a) Reducing strategic planning efforts
    b) Eliminating the need for performance measurement
    c) Minimizing data collection and reporting
    d) Automating data analysis and reporting tasks
  6. EPM involves continuous monitoring and analysis of performance against what?
    a) Financial statements
    b) Industry benchmarks
    c) Employee attendance records
    d) Social media engagement metrics
  7. What is the purpose of using business intelligence and analytics in EPM?
    a) To set performance targets
    b) To measure employee satisfaction
    c) To improve decision-making
    d) To forecast economic trends
  8. Which component of EPM involves identifying and mitigating potential risks?
    a) Forecasting and Modeling
    b) Risk Management
    c) Performance Improvement Initiatives
    d) Collaboration and Communication
  9. EPM helps organizations to align their day-to-day operations with what?
    a) Industry competitors
    b) Short-term goals
    c) Stakeholder demands
    d) Long-term strategic objectives
  10. Which aspect of EPM focuses on optimizing processes and reducing costs?
    a) Performance Measurement and Analysis
    b) Planning and Budgeting
    c) Business Intelligence and Analytics
    d) Performance Improvement Initiatives
  11. Which of the following is a critical component of EPM that involves gathering data from various sources across the organization?
    a) Forecasting and Modeling
    b) Risk Management
    c) Performance Measurement and Analysis
    d) Business Intelligence and Analytics
  12. EPM aims to align the performance of which of the following with an organization’s strategic goals? a) Employees
    b) Suppliers
    c) Competitors
    d) Regulators
  13. What is the role of “key performance indicators” (KPIs) in EPM?
    a) To evaluate employee salaries
    b) To measure the efficiency of manufacturing processes
    c) To monitor progress towards strategic objectives
    d) To assess the company’s stock performance
  14. Which EPM process involves comparing actual performance against planned performance?
    a) Forecasting and Modeling
    b) Performance Improvement Initiatives
    c) Performance Measurement and Analysis
    d) Strategy Formulation
  15. EPM helps in optimizing the allocation of resources to achieve what?
    a) Short-term financial targets
    b) Employee training goals
    c) Long-term strategic objectives
    d) Social media engagement metrics
  16. What is the purpose of conducting variance analysis in EPM?
    a) To identify potential risks in the market
    b) To assess the performance of competitors
    c) To determine deviations from the budget or plan
    d) To analyze employee turnover rates
  17. Which EPM component involves identifying and prioritizing improvement opportunities?
    a) Planning and Budgeting
    b) Performance Improvement Initiatives
    c) Collaboration and Communication
    d) Forecasting and Modeling
  18. What role does technology play in EPM implementation?
    a) Automating data analysis and reporting tasks
    b) Setting strategic goals for the organization
    c) Eliminating the need for financial planning
    d) Restricting data access to top-level executives only
  19. In EPM, what does the acronym “CFO” typically stand for?
    a) Cost and Financial Optimization
    b) Consolidation and Forecasting Oversight
    c) Chief Financial Officer
    d) Corporate Forecasting and Operations
  20. Which of the following is NOT a common challenge faced during EPM implementation?
    a) Lack of data integration between systems
    b) Resistance to change from employees
    c) Overemphasis on short-term goals
    d) Excessive reliance on strategic partnerships

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