ACCA PM — Performance Management Practice Exam 1

Section A

OmniRetail, a global supermarket chain, is implementing a new Executive Information System (EIS) to monitor daily store performance. The system aggregates data from millions of transactions to provide high-level summaries for the Board of Directors.

Which of the following is a primary characteristic of an Executive Information System (EIS) in this context?

Section A

CloudTech Solutions, a SaaS provider, is migrating its core financial performance data to a public cloud infrastructure. The management accountant is concerned about the specific risks associated with cloud computing compared to on-premise servers.

Which TWO of the following are specific risks heightened by using cloud computing?

Section A

ArtisanWood crafts bespoke furniture. The company is adopting Activity-Based Costing (ABC). The total quality inspection costs for the year are $120,000. The cost driver is the number of inspections.

During the year, ArtisanWood expects to conduct 4,000 inspections in total. Product 'OakTable' requires 150 inspections.

Calculate the total quality inspection cost allocated to the 'OakTable' product line for the year. (Enter the number only, without the $ sign).

Section A

SiliconForge manufactures semiconductor chips. The factory has a bottleneck process. The return per factory hour for Chip X is $450. The total factory costs (excluding direct materials) are $1,200,000 per month, and the bottleneck resource is available for 4,000 hours per month.

What is the Throughput Accounting Ratio (TPAR) for Chip X?

Section A

ChemCorp produces industrial solvents. Recently, the company was fined $50,000 by the environmental agency for a toxic spill into a local river. Under Environmental Management Accounting (EMA), how should this fine be classified?