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A government department is responsible for monitoring the performance of schools providing education for pupils aged between 11 and 18. 

 There is a separate government department that sets final examinations that help determine entry to university and support pupils' job applications. 

The head teachers at individual schools are responsible for teaching and submitting selected pupils for these examinations. 

Which of the following statements is valid in the context of this scenario? 

A

 Poor performance in terms of financial indicators should be ignored if a school is performing well in non-financial terms. 

B

 Non-financial performance indicators cannot be manipulated by school head teachers. 

C

 It is generally valid to compare the pass rates of different schools in the final examinations. 

D

 Non-financial indicators are generally more important than financial indicators in the public sector 

 This question appeared in the June 2015 exam. 

 The following ratios have been calculated for a company: 

 Gross profit margin 42% 

 Operating profit margin 28% 

 Gearing (debt/equity) 40% 

 Asset turnover 65% 

What is the return on capital employed for the company? 

A

 27.3% 

B

 18.2% 

C

 11.2% 

D

 16.8% 

This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. 

Which of the following items would best go into the Customer Perspective within a traditional balanced scorecard? Select all that apply.

  Customer profitability analysis

  Customer retention rates

  Customer satisfaction ratings

  Customer ordering processing times 

 This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. 

While a drag and drop style question is impossible to fully replicate within a paper based medium, some questions of this style have been included for completeness. 

Drag the six dimensions of performance contained within the Building Block model into the box below:

  Customers

  Competitiveness

  Learning

  Innovation

  Financial

  Profitability

  Resource utilisation

  Flexibility

  Equity

  Controllability

  Quality 

A company has the following summarised income statements for two consecutive years. 



Although the net profit margin (net profit/sales) is the same for both years at 10%, the gross profit margin is not. 



Is this good or bad for the business? 


Which of the following could be described as an expert system? 

A

 An ATM dispensing cash provided there is enough money in the account 

B

 A stock management system, which highlights stock-outs 

C

 A marketing database holding records of past advertising campaigns and the sales generated by those campaigns 

D

 A tax calculator which predicts the level of tax payable in different scenarios 

 Which of the following is the most reliable source of information on a country’s inflation rate? 

A

 Spending on groceries by a family from one point of time to the next 

B

 Journalist reports concerning the difficulties local families are having making ends meet 

C

 Average house prices measured across the country from one point of time to the next 

D

 The government figures for RPI or CPI 

 The qualities of good information contained in reports are more easily remembered using the mnemonic ACCURATE. Which one of the following is not normally associated with a quality of good information? 

A

 Adaptable to the needs of the user 

B

 Acceptable to the user 

C

 Accurate 

D

 Understandable by the user 

Strategic reports have many features, which of the following would be most likely true of a strategic report? 

A

 Prepared regularly 

B

 Normally considered accurate and reliable 

C

 Highly summarised showing overall trends 

D

 Demonstrates current position 

 Local managers within organisations often use operational reports. Which of the following features of reports would be most true of an operational report?  

A

 Summarised information 

B

 Mainly external information on local competition 

C

 Accurate information on current position 

D

 Infrequent