UNIT 4 BUSINESS MANAGEMENT - KEY PERFORMANCE INDICATORS
QUESTIONS AND ACCURATE ANSWERS 2024/2025 | VERIFIED
Key Performance Indicators (KPI) - ✔️✔️Measures or a set of data that allows a business to determine
whether it is meeting its business goals and objectives.
Any KPI or data source must be... - ✔️✔️- Relevant
- Valid
- Reliable
- Delivers valuable information
Efficiency - ✔️✔️Is judged as the best use of resources in the production of goods and/or services. It
also relates to being able to accomplish a task with the minimum expenditure of time and effort.
Effectiveness - ✔️✔️Is the degree to which a business achieves its stated objectives; 'doing the right
things'; the ability of a business strategy to achieve an intended or expected outcome.
Percentage of market share - ✔️✔️The portion of sales (units or revenue) pf a product that a company
achieved in relation to the sales of the same product that other companies achieved.
Net profit figures - ✔️✔️The amount left after all expenses (e.g. costs, taxes) have been paid, also
referred to as the bottom line.
Rate of productivity growth - ✔️✔️Is a measure of performance that indicates how many inputs
(resources)it takes to produce an output (goods or services). Productivity is a measure of efficiency that
is used by the operations and human resources functions.
Number of Sales - ✔️✔️The total quantity of sales of a particular product or service.
Rate of staff absenteeism - ✔️✔️A percentage indicating the number of workdays lost due to
unscheduled staff absence from work, especially without a good reason.
Level of staff turnover - ✔️✔️Measures the number of employees who had to be replaced within a
given period
QUESTIONS AND ACCURATE ANSWERS 2024/2025 | VERIFIED
Key Performance Indicators (KPI) - ✔️✔️Measures or a set of data that allows a business to determine
whether it is meeting its business goals and objectives.
Any KPI or data source must be... - ✔️✔️- Relevant
- Valid
- Reliable
- Delivers valuable information
Efficiency - ✔️✔️Is judged as the best use of resources in the production of goods and/or services. It
also relates to being able to accomplish a task with the minimum expenditure of time and effort.
Effectiveness - ✔️✔️Is the degree to which a business achieves its stated objectives; 'doing the right
things'; the ability of a business strategy to achieve an intended or expected outcome.
Percentage of market share - ✔️✔️The portion of sales (units or revenue) pf a product that a company
achieved in relation to the sales of the same product that other companies achieved.
Net profit figures - ✔️✔️The amount left after all expenses (e.g. costs, taxes) have been paid, also
referred to as the bottom line.
Rate of productivity growth - ✔️✔️Is a measure of performance that indicates how many inputs
(resources)it takes to produce an output (goods or services). Productivity is a measure of efficiency that
is used by the operations and human resources functions.
Number of Sales - ✔️✔️The total quantity of sales of a particular product or service.
Rate of staff absenteeism - ✔️✔️A percentage indicating the number of workdays lost due to
unscheduled staff absence from work, especially without a good reason.
Level of staff turnover - ✔️✔️Measures the number of employees who had to be replaced within a
given period
