ESTUDYR
WGU C207 - MODULE 6 UPDATED EXAM WITH MOST TESTED
QUESTIONS AND ANSWERS | GRADED A+ | ASSURED SUCCESS
WITH DETAILED RATIONALES
1. Performance measures are best described as tools that:
A. Predict future market trends without using data.
B. Can be used to evaluate the efficiency of an individual, a group, or even an entire
organization using data collection and analytics. (Correct)
C. Only measure financial outcomes for shareholders.
D. Replace managerial judgment and strategy.
Rationale: Performance measures rely on data and analytics to evaluate efficiency at various
levels; they are not limited to finance nor do they remove managerial judgment.
2. A Critical Success Factor (CSF) is:
A. A financial ratio required by auditors.
B. A daily checklist for employees.
C. The important things an entity must do to be successful, such as quality measures,
customer service, or efficiency. (Correct)
D. A random performance target set by competitors.
Rationale: CSFs are key activities or areas that must be performed well to achieve
organizational success.
3. Which statement about a Key Performance Indicator (KPI) is TRUE?
A. KPIs are always qualitative and cannot be measured numerically.
B. KPIs should change weekly to reflect trends.
C. KPIs are performance measurements organizations use to quantify success and
should follow SMART criteria. (Correct)
D. KPIs eliminate the need for performance dashboards.
Rationale: KPIs quantify success and are ideally SMART (Specific, Measurable, Attainable,
Relevant, Time-bound). They work with dashboards rather than replace them.
, ESTUDYR
4. The “SMART” criteria for KPIs stands for:
A. Specific, Measurable, Achievable, Relevant, Time-bound.
B. Specific, Measurable, Attainable, Relevant, Time-bound. (Correct — wording
matched to Module 6)
C. Strategic, Measurable, Accurate, Realistic, Timely.
D. Simple, Manageable, Actionable, Reliable, Trackable.
Rationale: The standard SMART acronym includes "Attainable" (synonymous with achievable)
and "Time-bound."
5. A performance dashboard primarily:
A. Displays key performance indicators using visual representations such as charts and
graphs. (Correct)
B. Replaces all formal reporting for regulators.
C. Is always updated manually on paper.
D. Only contains historical narrative reports.
Rationale: Dashboards visualize KPIs (charts/graphs) to aid quick decision making; they do not
replace formal regulatory reporting necessarily.
6. One advantage of KPIs is that they:
A. Never require management attention.
B. Are always cheap to implement.
C. Provide data-driven results that make it easier to quantify performance. (Correct)
D. Ensure perfect predictive accuracy.
Rationale: KPIs give measurable data to quantify performance; they still require attention and
can be costly.
7. A common disadvantage of KPIs is:
A. They guarantee behavior change without communication.
B. They can be expensive and time-consuming to set up and require ongoing
maintenance. (Correct)
C. They never change meaning over time.
D. They always give statistically significant results.
WGU C207 - MODULE 6 UPDATED EXAM WITH MOST TESTED
QUESTIONS AND ANSWERS | GRADED A+ | ASSURED SUCCESS
WITH DETAILED RATIONALES
1. Performance measures are best described as tools that:
A. Predict future market trends without using data.
B. Can be used to evaluate the efficiency of an individual, a group, or even an entire
organization using data collection and analytics. (Correct)
C. Only measure financial outcomes for shareholders.
D. Replace managerial judgment and strategy.
Rationale: Performance measures rely on data and analytics to evaluate efficiency at various
levels; they are not limited to finance nor do they remove managerial judgment.
2. A Critical Success Factor (CSF) is:
A. A financial ratio required by auditors.
B. A daily checklist for employees.
C. The important things an entity must do to be successful, such as quality measures,
customer service, or efficiency. (Correct)
D. A random performance target set by competitors.
Rationale: CSFs are key activities or areas that must be performed well to achieve
organizational success.
3. Which statement about a Key Performance Indicator (KPI) is TRUE?
A. KPIs are always qualitative and cannot be measured numerically.
B. KPIs should change weekly to reflect trends.
C. KPIs are performance measurements organizations use to quantify success and
should follow SMART criteria. (Correct)
D. KPIs eliminate the need for performance dashboards.
Rationale: KPIs quantify success and are ideally SMART (Specific, Measurable, Attainable,
Relevant, Time-bound). They work with dashboards rather than replace them.
, ESTUDYR
4. The “SMART” criteria for KPIs stands for:
A. Specific, Measurable, Achievable, Relevant, Time-bound.
B. Specific, Measurable, Attainable, Relevant, Time-bound. (Correct — wording
matched to Module 6)
C. Strategic, Measurable, Accurate, Realistic, Timely.
D. Simple, Manageable, Actionable, Reliable, Trackable.
Rationale: The standard SMART acronym includes "Attainable" (synonymous with achievable)
and "Time-bound."
5. A performance dashboard primarily:
A. Displays key performance indicators using visual representations such as charts and
graphs. (Correct)
B. Replaces all formal reporting for regulators.
C. Is always updated manually on paper.
D. Only contains historical narrative reports.
Rationale: Dashboards visualize KPIs (charts/graphs) to aid quick decision making; they do not
replace formal regulatory reporting necessarily.
6. One advantage of KPIs is that they:
A. Never require management attention.
B. Are always cheap to implement.
C. Provide data-driven results that make it easier to quantify performance. (Correct)
D. Ensure perfect predictive accuracy.
Rationale: KPIs give measurable data to quantify performance; they still require attention and
can be costly.
7. A common disadvantage of KPIs is:
A. They guarantee behavior change without communication.
B. They can be expensive and time-consuming to set up and require ongoing
maintenance. (Correct)
C. They never change meaning over time.
D. They always give statistically significant results.
