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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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