CAIIB – ABFM – Mock Test- 02

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1. 
What type of performance appraisal incorporates feedback from the participant, supervisor, and peers?

2. 
In a "make or buy" decision, what would prompt a company to consider having plants for captive consumption?

3. 
What are the two main components of cost in profit analysis?

4. 
What risk is associated with some managers viewing Management by Objectives (MBO) as a comprehensive system?

5. 
When calculating foreign currency discount rates for capital budgeting in foreign investments, what key factors and considerations should be taken into account? A) The prevailing spot rate for converting local currency to foreign currency. B) The types of foreign currency forms, such as currency notes and travelers' cheques. C) The forward contract rate for future currency exchange. D) Adjusting future contract rates for interest rates and the time until expiration.

6. 
In the context of the organizing function of management, what does the term "Task Management" refer to?

7. 
What are the three primary facets of staffing?

8. 
What does the term "project cost" refer to in the context of setting up of the project?

9. 
What are the top five best practices for working well with employees of varying ages in the workplace? A) Do not make any assumptions B) Avoid using labels C) Ensuring regular review of your own biases D) Focus on the people around you rather than the trends E) Acknowledge and celebrate the differences that exist throughout each generation

10. 
How does a committee organization contribute to participatory management?

11. 
What are the advantages of raising funds through equity capital by an organisation? A) Equity holders are not required to be paid compulsorily any reward or interest. B) There is no repayment involved for equity. C) Equity provides risk capital which is difficult to source. D) Raising equity capital is generally lower in cost compared to other securities.

12. 
Who are the three main contributors to the Total Quality Management approach?

13. 
How does Activity-Based Costing (ABC) differ from the traditional allocation method, and what role does it play in decision making? A) ABC focuses on uniformly allocating costs to products or customers, while the allocation method uses metrics like the total number of units produced, accounts, customers, or transactions. B) ABC is primarily used for estimating costs, while the allocation method helps in pricing and outsourcing decisions. C) ABC involves appropriately assigning costs to different products, services, or customers based on cost-driving activities, considering variations in activity requirements. D) ABC and the allocation method both use the same principles for assigning costs and do not impact decision-making processes.

14. 
What is the primary focus of the "judgmental capabilities" method for project evaluation?

15. 
What is the term used to describe the levers used to achieve organizational efficiency and effectiveness?

16. 
What are the factors that determine risk perception in business management? A) The skill of the decision maker and knowledge of the business. B) The cost and nature of fixed and variable costs. C) The financial leverage and methods of fund raising. D) The strategy for handling contingencies and unforeseen events.

17. 
Which of the following methods are described as traditional techniques of control? A) Personal Observation B) Break-even Analysis C) Statistical Reports D) Budgetary Control E) Return on Investment

18. 
What is the purpose of the chain of command in organizing any organisation? A) To ensure everyone knows who they should report to B) To eliminate any form of delegation C) To establish a clear hierarchy within the organization D) To encourage employees to bypass their immediate superiors

19. 
The development of business strategy can be broken down into several phases. Which phases are involved in the process of strategic management ? A) Basic Budgetary Planning B) Forecast-based Planning C) Externally Oriented (Strategic) Planning D) Tactical Implementation

20. 
What is the position of the controlling function in the management process?

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