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DataAnalyticsforAccounting,1e(Richardson)

Chapter7GeneratingKeyPerformanceIndicators

1)Dataanalyticsistheprocessofmeasuringpastperformancewhilecomparingittotargetedgoalstobetterevaluateacompany’sprogress.

Answer:TRUE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

2)Performancemetricscanbeusedtodeterminecompetence.

Answer:FALSE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

3)Dataanalyticshasthepotentialtotransformthemannerinwhichcompaniesruntheirbusinessestobetterdeterminethegapsinactualcompanyperformance.

Answer:FALSE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

4)Datavisualizationisthemosteffectivewaytocommunicatetheresultofanydataanalysis.

Answer:TRUE

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

5)AdigitaldashboardallowsforcommunicatingaselectionofKPIs.

Answer:TRUE

Difficulty:2Medium

Topic:AddressandRefineResults

LearningObjective:07-03CreateadashboardusingKPIs

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

6)CreatingabalancedscorecardoranytypeofdigitaldashboardtopresentKPIsfordecision-makingfollowstheIMPACTmodel.

Answer:TRUE

Difficulty:1Easy

Topic:AddressandRefineResults

LearningObjective:07-03CreateadashboardusingKPIs

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

7)Thebalancedscorecardisbasedaroundacompany'sprofitandlossstatement.

Answer:FALSE

Difficulty:2Medium

Topic:IdentifytheQuestions

LearningObjective:07-01EvaluateManagementRequirementsandIdentifyUsefulKPIsFromaList

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

8)Thevalueofadigitaldashboardismaximizedwhenthemetricsprovidedareusedtoimpactdecision-makingandaction.

Answer:TRUE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

9)Thebalancedscorecardhelpscompaniesturntheirstrategicgoalsintoactionbyidentifyingthemostimportantmetricstomeasure.

Answer:TRUE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

10)Thebalancedscorecardiscomprisedoffourcomponents:financial,customer,internalprocessandorganizationalvalidity.

Answer:FALSE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

11)FinancialperformanceKPIsincludenetprofit,netprofitmargin,andgrossprofitmargin.

Answer:TRUE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

12)CustomerKPIsincludepriceearningsratio,netpromoterscore,andcustomerretentionscore.

Answer:FALSE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

13)OperationalKPIsincludesixsigmalevelandfirstcontactresolution.

Answer:TRUE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

14)EmployeePerformanceKPIsincludestaffadvocacyscoreandoverallequipmenteffectiveness.

Answer:FALSE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

15)EnvironmentalandsocialsustainabilityKPIsincludeenergyconsumptionandcarbonfootprint.

Answer:TRUE

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

16)Abalancedscorecardincludesawell-definedmission,visionandsetofvalueswhichareintegralincreatingandmaintainingasuccessfulculture.

Answer:TRUE

Difficulty:2Medium

Topic:IdentifytheQuestions

LearningObjective:07-01EvaluateManagementRequirementsandIdentifyUsefulKPIsFromaList

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

17)Aproperstrategyforacompany'sgrowthconsiderswhatafirmdoeswellandhowitachievesit.

Answer:TRUE

Difficulty:1Easy

Topic:IdentifytheQuestions

LearningObjective:07-01EvaluateManagementRequirementsandIdentifyUsefulKPIsFromaList

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

18)KPIdataistypicallystoredinthecompany'sERPoraccountinginformationsystemwhileKPIdataanalysisforthedigitaldashboardiscreatedinadatavisualizationtoolsuchasExcelorTableau.

Answer:TRUE

Difficulty:1Easy

Topic:MastertheDataandPerformtheTestPlan

LearningObjective:07-02EvaluateunderlyingdataqualityusedforKPI

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

19)SinceKPIdashboardsareusuallymonitoredonadailybasis,theimportanceofcommunicationbetweenallusersistrivial.

Answer:FALSE

Difficulty:2Medium

Topic:AddressandRefineResults

LearningObjective:07-03CreateadashboardusingKPIs

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

20)TheIMPACTmodelshouldbeusedtocompleteaprojectusingabalancedscorecardorsomeothertypeofdigitaldashboardtohighlightmetricsandKPIs.

Answer:TRUE

Difficulty:1Easy

Topic:AddressandRefineResults

LearningObjective:07-03CreateadashboardusingKPIs

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

21)A________isacalculationmeasuringhowanorganizationisperforming,particularlywhenthatmeasureiscomparedtoabaseline.

A)balancedscorecard

B)digitaldashboard

C)keyperformanceindicator

D)performancemetric

Answer:D

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

22)A________isaparticulartypeofmetricthatanorganizationdeemsthemostimportantandinfluentialondecision-making.

A)balancedscorecard

B)digitaldashboard

C)keyperformanceindicator

D)performancemetric

Answer:C

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

23)A________isaparticulartypeofreportthatismadeupofstrategicobjectivesandmetricstohelptheorganizationreachitstargetmeasuresinlinewithstrategicgoals.

A)balancedscorecard

B)digitaldashboard

C)keyperformanceindicator

D)performancemetric

Answer:A

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

24)A________isaninteractivereportshowingthemostimportantmetricstohelpusersunderstandhowacompanyoranorganizationisperforming.

A)balancedscorecard

B)digitaldashboard

C)keyperformanceindicators

D)performancemetric

Answer:B

Difficulty:1Easy

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Remember

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

25)Thebalancedscorecardiscomprisedoffourcomponents;whichofthefollowingisnotanitemthatshouldbeidentifiedforeachcomponent?

A)objectives

B)measures

C)destinations

D)initiatives

Answer:C

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

26)Thebalancedscorecardiscomprisedoffourcomponents,whichofthefollowingisnotacomponentofabalancedscorecard?

A)Financial

B)Customer

C)Internalprocess

D)Externalprocess

Answer:D

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

27)MarketshareiswhichofthefollowingtypesofKPI?

A)Marketing

B)Customer

C)Operational

D)Financialperformance

Answer:A

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

28)MarketgrowthrateiswhichofthefollowingtypesofKPI?

A)Marketing

B)Customer

C)Operational

D)Financialperformance

Answer:A

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

29)SocialnetworkingfootprintiswhichofthefollowingtypesofKPI?

A)Marketing

B)Operational

C)Customer

D)Financialperformance

Answer:A

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

30)TrainingreturnoninvestmentiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:A

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

31)StaffadvocacyscoreiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:A

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

32)RevenueperemployeeiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:A

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

33)EBITDAiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Marketing

D)Financialperformance

Answer:D

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

34)OperatingprofitmarginiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Marketing

D)Financialperformance

Answer:D

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

35)ReturnoninvestmentiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Marketing

D)Financialperformance

Answer:D

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

36)OperatingexpenseratioiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Marketing

D)Financialperformance

Answer:D

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

37)CustomerturnoverrateiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:C

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

38)CustomerretentionrateiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:C

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

39)InventoryshrinkagerateiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:B

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

40)ReturnoninnovationinvestmentiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:B

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

41)FirstpassyieldiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:B

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

42)ProcessdowntimeleveliswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Customer

D)Financialperformance

Answer:B

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

43)WastereductionrateiswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Environmentalandsocialsustainability

D)Financialperformance

Answer:C

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

44)EnergyconsumptioniswhichofthefollowingtypesofKPI?

A)Employeeperformance

B)Operational

C)Environmentalandsocialsustainability

D)Financialperformance

Answer:C

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

45)WhichofthefollowingisanexampleofanenvironmentalandsocialperformancesustainabilityKPI?

A)360-degreefeedbackscore

B)Processwastelevel

C)Conversionrate

D)Supplychainmiles

Answer:D

Difficulty:2Medium

Topic:KeyPerformanceIndicators

LearningObjective:07-00Introduction.

Bloom's:Understand

AACSB:ReflectiveThinking

AICPA:BBIndustry;FNDecisionMaking

46)WhichofthefollowingisanexampleofanEmp

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