F5 Performance management practice questions ACCA F5 Performance management practice questions ACCA F5 Performance management practice questions ACCA
Trang 1Non-Financial Performance
Measurement
Prepared for Educational Purposes
August 18, 2025
Contents
2 Part 2: Answers with Detailed Explanations 9
1
Trang 21 Part 1: List of Questions
This section contains 50 multiple-choice questions based on Non-Financial Performance Measurement, focusing on the balanced scorecard, Fitzgerald and Moons dimensions, and key performance indicators (KPIs) Numbers are left-aligned from 1 to 50
1 A company has a call centre to handle complaints from customers and is concerned about the average time that it takes to deal with customers As part of its balanced scorecard, it has set a target for reducing the average time per call Such a target would relate to which one of the four balanced scorecard perspectives?
a Internal business perspective
b Customer perspective
c Financial perspective
d Innovation and learning perspective
2 Which of the following is NOT one of Fitzgerald and Moons dimensions of perfor-mance?
a Competitiveness
b Quality
c Learning
d Financial
3 In relation to performance measures, which of these statements is/are true?
1 They should be measurable in financial terms
2 They should only measure factors over which the relevant manager has control or influence
a Statement 2 only
b Statement 1 only
c Both statements
d Neither statement
4 Which of the following is not a perspective associated with the balanced scorecard?
a Quality
b Process efficiency
c Growth
d Financial success
5 As one of its key performance indicators, a restaurant measures the amount of food that is wasted Under which perspective would this appear on a balanced scorecard?
a Customer satisfaction
b Process efficiency
c Financial success
d Learning and innovation
Trang 36 A company tracks employee training hours as a KPI Under which balanced scorecard perspective does this fall?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
7 Which of Fitzgerald and Moons dimensions focuses on the ability to adapt to changing customer demands?
a Quality
b Flexibility
c Resource utilization
d Competitiveness
8 A retail company measures customer retention rate This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
9 Which of the following is a characteristic of an effective non-financial performance measure?
a It must be expressed in monetary terms
b It should align with strategic objectives
c It should only focus on financial outcomes
d It must be independent of managerial control
10 A manufacturing firm tracks defect rates in its production process This KPI belongs
to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
11 Which of Fitzgerald and Moons dimensions measures the efficient use of resources like staff and equipment?
a Innovation
b Resource utilization
c Quality
d Financial
Trang 412 A company sets a target to reduce product delivery time This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
13 Which of the following statements about the balanced scorecard is true?
a It focuses solely on financial performance
b It integrates financial and non-financial measures
c It excludes customer-related metrics
d It is only used in manufacturing industries
14 A company measures the percentage of on-time deliveries Under which balanced scorecard perspective does this KPI fall?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
15 Which of Fitzgerald and Moons dimensions is concerned with market share and cus-tomer attraction?
a Quality
b Flexibility
c Competitiveness
d Resource utilization
16 A software company tracks the number of new features developed This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
17 Which of the following is NOT a feature of an effective performance measure?
a Measurable
b Relevant to objectives
c Focused only on financial outcomes
d Controllable by managers
18 A hospital measures patient satisfaction scores This KPI belongs to which balanced scorecard perspective?
Trang 5a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
19 Which of Fitzgerald and Moons dimensions focuses on creativity and new product development?
a Quality
b Innovation
c Flexibility
d Financial
20 A company tracks the cycle time for processing customer orders This KPI aligns with which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
21 Which of the following statements about non-financial performance measures is true?
a They are irrelevant to strategic planning
b They can drive long-term performance improvements
c They must always be quantitative
d They replace financial measures entirely
22 A company measures employee turnover rate Under which balanced scorecard per-spective does this KPI fall?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
23 Which of Fitzgerald and Moons dimensions measures service reliability and customer experience?
a Competitiveness
b Quality
c Resource utilization
d Innovation
24 A logistics company tracks fuel efficiency of its delivery vehicles This KPI aligns with which balanced scorecard perspective?
a Customer perspective
Trang 6b Internal business perspective
c Financial perspective
d Innovation and learning perspective
25 Which of the following is a benefit of the balanced scorecard?
a It focuses only on short-term financial goals
b It aligns performance measures with strategy
c It eliminates the need for financial metrics
d It is only applicable to service industries
26 A company measures customer complaint resolution time This KPI belongs to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
27 Which of Fitzgerald and Moons dimensions evaluates profitability and cost efficiency?
a Financial
b Quality
c Flexibility
d Competitiveness
28 A company tracks the number of employee suggestions implemented This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
29 Which of the following statements about performance measures is true?
a They should only be set at the corporate level
b They should be linked to organizational goals
c They must always be financial
d They should exclude external factors
30 A retailer measures the average time to restock shelves This KPI belongs to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
Trang 7d Innovation and learning perspective
31 Which of Fitzgerald and Moons dimensions is concerned with adapting to volume changes?
a Quality
b Flexibility
c Resource utilization
d Innovation
32 A company tracks customer satisfaction with product support This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
33 Which of the following is NOT a characteristic of effective non-financial performance measures?
a Aligned with strategy
b Quantifiable
c Focused solely on internal processes
d Controllable by managers
34 A company measures the percentage of products delivered without defects This KPI belongs to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
35 Which of Fitzgerald and Moons dimensions focuses on efficient use of capacity?
a Competitiveness
b Resource utilization
c Quality
d Financial
36 A company tracks the time taken to develop new products This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
Trang 837 Which of the following statements about the balanced scorecard is true?
a It is limited to financial performance metrics
b It encourages a balanced view of performance
c It excludes internal process metrics
d It is only used in non-profit organizations
38 A company measures the percentage of orders processed without errors This KPI belongs to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
39 Which of Fitzgerald and Moons dimensions is concerned with customer satisfaction and service standards?
a Quality
b Flexibility
c Competitiveness
d Innovation
40 A company tracks employee satisfaction scores This KPI aligns with which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
41 Which of the following is a limitation of non-financial performance measures?
a They are always easy to quantify
b They may be subjective or hard to measure
c They replace financial measures
d They are irrelevant to strategy
42 A company measures the number of new customers acquired This KPI belongs to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
43 Which of Fitzgerald and Moons dimensions measures the ability to introduce new services?
Trang 9a Quality
b Innovation
c Flexibility
d Resource utilization
44 A company tracks the efficiency of its supply chain processes This KPI aligns with which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
45 Which of the following statements about non-financial KPIs is true?
a They are only relevant for financial goals
b They can predict future performance
c They must always be numerical
d They are only used in service industries
46 A company measures the percentage of employees completing training programs This KPI belongs to which balanced scorecard perspective?
a Financial perspective
b Customer perspective
c Internal business perspective
d Innovation and learning perspective
47 Which of Fitzgerald and Moons dimensions evaluates cost-effectiveness?
a Competitiveness
b Financial
c Quality
d Flexibility
48 A company tracks customer loyalty through repeat purchases This KPI aligns with which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
49 Which of the following is a benefit of using non-financial performance measures?
a They eliminate the need for financial reporting
b They provide insights into operational performance
Trang 10c They are always objective
d They focus only on short-term goals
50 A company measures the time taken to resolve IT system issues This KPI belongs
to which balanced scorecard perspective?
a Customer perspective
b Internal business perspective
c Financial perspective
d Innovation and learning perspective
51 Which of the following statements about the balanced scorecard is true?
a It focuses only on external performance metrics
b It integrates short-term and long-term objectives
c It excludes employee-related metrics
d It is only used in large corporations
2 Part 2: Answers with Detailed Explanations
1 b Customer perspective Explanation: Reducing call time improves customer
sat-isfaction, aligning with the Customer perspective of the balanced scorecard
2 c Learning Explanation: Fitzgerald and Moons dimensions are Competitiveness,
Financial, Quality, Flexibility, Resource Utilization, and Innovation Learning is not included
3 a Statement 2 only Explanation: Statement 1: False, performance measures can
be non-financial Statement 2: True, measures should focus on factors managers can control
4 a Quality Explanation: Balanced scorecard perspectives are Financial, Customer,
Internal Business Processes, and Innovation and Learning Quality is a metric, not a perspective
5 b Process efficiency Explanation: Food waste measures operational efficiency,
align-ing with the Internal Business Processes perspective (termed Process efficiency here)
6 d Innovation and learning perspective Explanation: Employee training hours
en-hance skills and knowledge, aligning with the Innovation and Learning perspective
7 b Flexibility Explanation: Flexibility in Fitzgerald and Moons framework refers to
adapting to changing customer demands
8 b Customer perspective Explanation: Customer retention rate measures customer
loyalty, aligning with the Customer perspective
9 b It should align with strategic objectives Explanation: Effective non-financial
measures should support the companys strategy, not necessarily be financial or inde-pendent of control
10 b Internal business perspective Explanation: Defect rates measure production
process efficiency, aligning with the Internal Business Processes perspective
Trang 1111 b Resource utilization Explanation: Resource utilization measures efficient use of
staff and equipment in Fitzgerald and Moons framework
12 b Customer perspective Explanation: Reducing delivery time improves customer
experience, aligning with the Customer perspective
13 b It integrates financial and non-financial measures Explanation: The balanced
scorecard combines financial and non-financial metrics to assess performance holisti-cally
14 a Customer perspective Explanation: On-time deliveries impact customer
satisfac-tion, aligning with the Customer perspective
15 c Competitiveness Explanation: Competitiveness in Fitzgerald and Moons
frame-work focuses on market share and customer attraction
16 d Innovation and learning perspective Explanation: New feature development
reflects innovation, aligning with the Innovation and Learning perspective
17 c Focused only on financial outcomes Explanation: Effective measures are
measur-able, relevant, and controllmeasur-able, but not limited to financial outcomes
18 a Customer perspective Explanation: Patient satisfaction scores measure customer
experience, aligning with the Customer perspective
19 b Innovation Explanation: Innovation in Fitzgerald and Moons framework focuses
on creativity and new product development
20 b Internal business perspective Explanation: Order processing cycle time measures
process efficiency, aligning with the Internal Business Processes perspective
21 b They can drive long-term performance improvements Explanation: Non-financial
measures can predict and improve long-term performance, unlike the other options
22 d Innovation and learning perspective Explanation: Employee turnover rate affects
workforce stability, aligning with the Innovation and Learning perspective
23 b Quality Explanation: Quality in Fitzgerald and Moons framework measures
service reliability and customer experience
24 b Internal business perspective Explanation: Fuel efficiency measures operational
efficiency, aligning with the Internal Business Processes perspective
25 b It aligns performance measures with strategy Explanation: The balanced
score-card links KPIs to strategic goals, unlike the other options
26 a Customer perspective Explanation: Complaint resolution time impacts customer
satisfaction, aligning with the Customer perspective
27 a Financial Explanation: Financial performance in Fitzgerald and Moons
frame-work evaluates profitability and cost efficiency
28 d Innovation and learning perspective Explanation: Employee suggestions reflect
innovation and learning, aligning with this perspective
29 b They should be linked to organizational goals Explanation: Performance
mea-sures should align with strategic goals, not be limited to financial or corporate-level metrics