Operational Efficiency – Page 2

MA – Mar 2025 – L2 – Q1 – Performance analysis

Analyze VAL's 2024 performance in financial, internal efficiency, and external effectiveness using provided data.

Question

========== Question Title: MA – Mar 2025 – L2 – Q1 – Performance analysis
Level: LEVEL 2
Professional Bodies: ICAG
Programs: PROFESSIONAL PROGRAM
Subjects: Management Accounting
Topics: Performance analysis, Financial performance, Internal efficiency, External effectiveness
Series: MARCH 2025
Total Marks: 20
Question Tags: Performance analysis, Financial performance, Internal efficiency, External effectiveness, Revenue calculation, Profitability, Customer satisfaction, Operational efficiency
Question Short Summary: Analyze VAL’s 2024 performance in financial, internal efficiency, and external effectiveness using provided data.

——————————————————————— Question:
QUESTION ONE
Vovome Advisory Limited (VAL) began trading three years ago, on 1 January 2022. It specialises in the provision of expert advice to clients in accountancy, taxation and regulatory compliance. It has a team of professional advisers, each specialising in one of these three areas of advice.
VAL has a target for delivering its services to clients promptly. From the time the client asks for advice, VAL undertakes to provide a formal report to the client within 10 working days.
The following information relates to the financial year ended 31 December 2024:
i) The professional advisers are budgeted to work 220 days each year. They charge GH₵1,400 per day to new clients and GH₵1,200 to established clients.
ii) As a marketing measure intended to win new business, the advisers also give consultations to potential clients on a ‘no fee’ basis. These consultations, which are budgeted to take one day each, are accounted for as business development costs in the marketing budget.
iii) The professional advisers are also required to attend some ‘workshops’ with new clients who are having difficulties with implementing the advice that they have been given by VAL. These workshops, which are also given on a ‘no fee’ basis, are budgeted to last two days.
iv) VAL also has a help desk to provide client support. It responds to telephone and e-mail enquiries from all new and established clients.
v) The team of professional advisers is exactly 50. It is a policy of VAL to limit the team to 50, regardless of the volume of demand for its services.
vi) All professional advisers are paid a salary of GH₵100,000 per year. In addition, they are entitled to share equally in an annual bonus. The bonus is 50% of the amount by which fee income generated exceeds budget minus the revenue forgone as a result of having to give workshops for clients. This revenue forgone is assessed at a notional daily rate of GH₵1,200 per adviser/day.
vii) Operating expenses of the business, excluding salaries of the advisers, were GH₵3,100,000 in 2024. The budget for these expenses was GH₵2,800,000.

Other information:

	Budget 2024	Actual 2024
Professional advisers, by category
Accounting	15	10
Tax	20	20
Compliance	15	20

Enquiries about seeking new advice
New clients	2,600	2,200
Established clients	4,000	3,700

Number of chargeable client days
New clients	2,600	2,750
Established clients	5,100	5,500
Average client days per job	4	4

Mix of chargeable client days
Accounting	1,155	1,650
Tax	1,540	3,300
Compliance	1,155	3,300

The following are actual results for each of the three years 2022-2024

	2022	2023	2024
Number of clients	160	248	347
Number of complaints from clients	50	75	95
Number of accounts in dispute	10	7	5
Support desk: Percentage of calls resolved	86%	94%	97%
Percentage of jobs completed within 10 days	90%	95%	98%
Average time to complete a job (days)	12.6	10.7	9.5
Chargeable client days	7,200	7,750	8,250
Number of consultations (business development)	50	100	150
Number of workshops given	110	135	165
Revenue (GH₵000)	8,920	9,740	?
Net profit (GH₵000)	1,740	1,940	?

Required:
Using the information provided, analyse and discuss the performance of VAL for the year ended 31 December 2024, under the following headings:
a) Financial performance and competitiveness;
b) Internal efficiency; and
c) External effectiveness.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Customer Satisfaction, External effectiveness, Financial Performance, Internal efficiency, Operational Efficiency, Performance Analysis, Profitability, Revenue calculation
Level: Level 2

Topic: External effectiveness
Series: MAR 2025

PM – Nov 2020 – L2 – Q5 – Balanced Scorecard

Analyze the performance of DAT Air using the Balanced Scorecard approach and propose relevant goals and performance measures for each of the perspectives.

Question

QUESTION 5
Dat Air was founded in January 2010 by Dr. Daniel Taiwo and the airline has been
branded as a low-cost airline in Nigeria. Dat Air‟s strategy is to operate as a low-cost and highly efficient airline, and it does this by:
(i) Operating mostly in cities where other airlines do not fly to reduce landing
cost;
(ii) Using only one aircraft model in order to reduce maintenance and operational
costs. These planes are leased rather than bought outright;
(iii) Having only one category of seat class; there is no pre-allocated seats or in-
flight entertainment; and to
(iv) Focus on e-commerce with customers both booking tickets and checking in
for flights online. Customers who booked well in advance before the flight
date enjoy substantial discount.
The airline was given an „on time arrival‟ ranking of second best by the
Nigerian aviation authority, who rank all 20 airlines operating locally in the
country based on the number of flights which arrive on time at their
destinations. 48 Dat Air flights were cancelled in 2018 compared to 35 in
2017. This increase was due to an increase in the staff absentee rate at Dat
Air from 5 days per staff member per year to 7 days.
The average „ground turnaround time‟ for airlines in Nigeria is 2 hours,
meaning that, on average, planes are on the ground for cleaning, refuelling,
etc for 2 hours before departing again. Customer satisfaction surveys have
shown that 90% of customers are happy with the standard of cleanliness on
Dat Air‟s planes.
The number of passengers carried by the airline has grown from 200,000
passengers on a total of 2,107 flights in 2010 to 650,000 passengers on
5,320 flights in 2018. The overall growth of the airline has been helped by
the limited route licensing policy of the Nigerian government, which has
given DAT Air almost monopoly status on some of its routes. However, the
government is now set to change this policy with almost immediate effect,
and it has become more important than ever to monitor performance
effectively.
This has necessitated the management of Dat Air to examine the airline‟s
performance using the balanced scorecard model. This will enable the
management to discover areas where improvement is needed in its
operations.
Required:
a. Describe each of the FOUR perspectives of the balanced scorecard.
(6 Marks)
b. For each perspective of the balanced scorecard, identify ONE goal
together with a corresponding performance measure which could be
used by DAT Air to measure the company‟s performance. The goals
and performance measures should be specifically relevant to Dat Air.
For each pair of goals and performance measures, explain why you
have chosen them. (9 Marks)
c. Appraise the usefulness of the balanced scorecard as a performance
evaluation technique. (5 Marks)
(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Airline Industry, Balanced Scorecard, Customer Satisfaction, Operational Efficiency, Performance Measurement, Strategic Management
Level: Level 2

Topic: Balanced Scorecard, Performance Measurement Systems
Series: NOV 2020

AA – May 2016 – L2 – Q5b – Public Sector Auditing

This question identifies operational strengths in Okunka hospital and suggests ways to improve value for money.

Question

(b) Okunka hospital is located in a country where healthcare is free, as the taxpayers fund state-owned hospitals. Two years ago, management reviewed all aspects of the hospital’s operations and instigated several measures aimed at improving overall ‘value for money’ for the local community. Management has asked you, an audit manager in the hospital’s internal audit department, to perform a review over the measures which have been implemented.

Required:

(i) Identify and explain FOUR strengths within Okunka’s operating environment. (6 marks)

(ii) For each strength identified, describe how Okunka might make further improvements to provide best value for money. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Hospital Operations, Internal Controls, Operational Efficiency, Procurement, Staffing, Value for Money
Level: Level 2

Topic: Public Sector Auditing
Series: MAY 2016

MA – Mar 2024 – L2 – Q4b – Decision making techniques

This question identifies the challenges associated with the implementation of a Just-In-Time (JIT) inventory management system.

Question

Just-In-Time (JIT) is an inventory management system in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover. Despite the benefits of JIT, it has some disadvantages.

Required:
Examine THREE (3) challenges associated with the implementation of JIT Inventory Management System.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Inventory Management, JIT, Operational Efficiency, Supply Chain
Level: Level 2

Topic: Decision making techniques
Series: MAR 2024

BMIS – March 2024 – L1 – Q4b – Operations strategy

Explain Total Quality Management (TQM) and outline four conditions for its successful implementation in organizations facing employee resistance.

Question

Both manufacturing and service organisations are making increasing use of Total Quality Management (TQM) in their attempt to achieve operational efficiency. However, its implementation has been met with some form of resistance from employees who do not seem to fully appreciate the concept.

Required: i) Explain Total Quality Management (TQM). (2 marks) ii) Outline FOUR (4) conditions which must prevail for the successful implementation of the Total Quality Management (TQM) concept. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Employee Resistance, Operational Efficiency, Quality improvement, Total Quality Management, TQM
Level: Level 1

Topic: Operations strategy
Series: MAR 2024

BMIS – Dec 2023 – L1 – Q5a – Introduction to information technology and information systems

Explains five factors to consider before implementing a Management Information Systems (MIS) package.

Question

You recently submitted a memorandum to the Operations Sub-Committee of the Board of Directors of your company recommending the installation and implementation of a Management Information Systems (MIS) package in order to enhance operational efficiency.

In response, the Committee has requested you to outline the conditions to be fulfilled before the package could be successfully implemented.

Required:

Explain FIVE (5) factors to be considered before the implementation of the MIS package.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Management Information Systems, MIS Implementation, Operational Efficiency
Level: Level 1

Topic: Introduction to information technology and information systems
Series: DEC 2023

BMIS – Dec 2023 – L1 – Q1b – Business and organisational structure

Explains the nature of virtual organizations and the benefits associated with them.

Question

The emergence of globalization has resulted in some small and large businesses operating as virtual organizations.

Required:

Explain to your study mates the nature of this organizational type and state FOUR (4) benefits associated with it.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Globalization, Operational Efficiency, Virtual Organizations
Level: Level 1

Topic: Business and Organisational Structure
Series: DEC 2023

BMIS – Aug 2022 – L1 – Q5a – Introduction to information technology and information systems

Explains five operational improvements that an organization can achieve by investing in information and communications technology (ICT) systems.

Question

Quantum Manufacturing Ltd has invested GH¢1 million in information and communications technology systems to facilitate more effective operations which will result in operational improvements in their activities.

Required:

Explain FIVE (5) of such operational improvements.

Answer

Find Related Questions by Tags, levels, etc.

Tags: ICT Investment, Information Systems, Operational Efficiency
Level: Level 1

Topic: Introduction to information technology and information systems
Series: AUG 2022

BMIS – Aug 2022 – L1 – Q3a – Business and organisational structure

Explains the benefits an organization would gain from integrating all of its operations.

Question

Integrating the operations of an organization is a decision that many find difficult to make as it is possible to find architectures that adapt to different requirements. Despite this, business integration is a necessity because of the success and benefits it brings to corporations and businesses.

Required:

Explain FIVE (5) benefits an organization would gain from integrating all of its operations.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Integration, Cost reduction, Operational Efficiency
Level: Level 1

Topic: Business and Organisational Structure
Series: AUG 2022

BMIS – Nov 2020 – L1 – Q5a – Introduction to information technology and information systems

Describes five accounting information systems that could enhance the operational efficiency of a company.

Question

The management of Marine Services Ltd intends to convert the existing manual accounting systems to an accounting information system to achieve its operational efficiency.

Required:

Explain FIVE (5) accounting information systems that could be used to enhance the operational efficiency of Marine Services Ltd.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Information Systems, Information Technology, Operational Efficiency
Level: Level 1

Topic: Introduction to information technology and information systems
Series: NOV 2020

BMIS – May 2021 – L1 – Q4b – Introduction to information technology and information systems

Explain the advantages of a Transaction Processing System (TPS) for a supermarket.

Question

The Management of My Hope Enterprise Ltd, a family-owned supermarket with branches throughout the country, has refused to adopt modern communication technology in its operations, citing heavy initial capital outlay. You have decided to convince the General Manager of the firm who is your friend on the benefits to be accrued from the use of modern technology.
Explain FOUR (4) advantages of Transaction Processing System (TPS) to the General Manager of My Hope Enterprise Ltd.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Data Management, Operational Efficiency, TPS, Transaction Processing
Level: Level 1

Topic: Introduction to information technology and information systems
Series: MAY 2021

BMIS – May 2016 – L1 – Q7a – Introduction to information technology and information systems

State five advantages that would accrue to a firm from installing a Transaction Processing System (TPS).

Question

You work as an accounts officer in a supermarket in Accra. The supermarket has recently witnessed a dramatic growth in its customer base. Management has therefore decided to install a Transaction Processing System (TPS) to cater for this growth. State FIVE advantages that would accrue to the firm with this decision.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Activity Tracking, Database Management, Operational Efficiency, TPS, Transaction Processing System
Level: Level 1

Topic: Introduction to information technology and information systems
Series: MAY 2016

Question Tag: Operational Efficiency

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MA – Mar 2025 – L2 – Q1 – Performance analysis

Analyze VAL's 2024 performance in financial, internal efficiency, and external effectiveness using provided data.

PM – Nov 2020 – L2 – Q5 – Balanced Scorecard

Analyze the performance of DAT Air using the Balanced Scorecard approach and propose relevant goals and performance measures for each of the perspectives.

AA – May 2016 – L2 – Q5b – Public Sector Auditing

This question identifies operational strengths in Okunka hospital and suggests ways to improve value for money.

MA – Mar 2024 – L2 – Q4b – Decision making techniques

This question identifies the challenges associated with the implementation of a Just-In-Time (JIT) inventory management system.

BMIS – March 2024 – L1 – Q4b – Operations strategy

Explain Total Quality Management (TQM) and outline four conditions for its successful implementation in organizations facing employee resistance.

BMIS – Dec 2023 – L1 – Q5a – Introduction to information technology and information systems

Explains five factors to consider before implementing a Management Information Systems (MIS) package.

BMIS – Dec 2023 – L1 – Q1b – Business and organisational structure

Explains the nature of virtual organizations and the benefits associated with them.

BMIS – Aug 2022 – L1 – Q5a – Introduction to information technology and information systems

Explains five operational improvements that an organization can achieve by investing in information and communications technology (ICT) systems.

BMIS – Aug 2022 – L1 – Q3a – Business and organisational structure

Explains the benefits an organization would gain from integrating all of its operations.

BMIS – Nov 2020 – L1 – Q5a – Introduction to information technology and information systems

Describes five accounting information systems that could enhance the operational efficiency of a company.

BMIS – May 2021 – L1 – Q4b – Introduction to information technology and information systems

Explain the advantages of a Transaction Processing System (TPS) for a supermarket.

BMIS – May 2016 – L1 – Q7a – Introduction to information technology and information systems

State five advantages that would accrue to a firm from installing a Transaction Processing System (TPS).

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Operational Efficiency

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MA – Mar 2025 – L2 – Q1 – Performance analysis

Analyze VAL's 2024 performance in financial, internal efficiency, and external effectiveness using provided data.

You're reporting an error for "MA – Mar 2025 – L2 – Q1 – Performance analysis"

PM – Nov 2020 – L2 – Q5 – Balanced Scorecard

Analyze the performance of DAT Air using the Balanced Scorecard approach and propose relevant goals and performance measures for each of the perspectives.

You're reporting an error for "PM – Nov 2020 – L2 – Q5 – Balanced Scorecard"

AA – May 2016 – L2 – Q5b – Public Sector Auditing

This question identifies operational strengths in Okunka hospital and suggests ways to improve value for money.

You're reporting an error for "AA – May 2016 – L2 – Q5b – Public Sector Auditing"

MA – Mar 2024 – L2 – Q4b – Decision making techniques

This question identifies the challenges associated with the implementation of a Just-In-Time (JIT) inventory management system.

You're reporting an error for "MA – Mar 2024 – L2 – Q4b – Decision making techniques"

BMIS – March 2024 – L1 – Q4b – Operations strategy

Explain Total Quality Management (TQM) and outline four conditions for its successful implementation in organizations facing employee resistance.

You're reporting an error for "BMIS – March 2024 – L1 – Q4b – Operations strategy"

BMIS – Dec 2023 – L1 – Q5a – Introduction to information technology and information systems

Explains five factors to consider before implementing a Management Information Systems (MIS) package.

You're reporting an error for "BMIS – Dec 2023 – L1 – Q5a – Introduction to information technology and information systems"

BMIS – Dec 2023 – L1 – Q1b – Business and organisational structure

Explains the nature of virtual organizations and the benefits associated with them.

You're reporting an error for "BMIS – Dec 2023 – L1 – Q1b – Business and organisational structure"

BMIS – Aug 2022 – L1 – Q5a – Introduction to information technology and information systems

Explains five operational improvements that an organization can achieve by investing in information and communications technology (ICT) systems.

You're reporting an error for "BMIS – Aug 2022 – L1 – Q5a – Introduction to information technology and information systems"

BMIS – Aug 2022 – L1 – Q3a – Business and organisational structure

Explains the benefits an organization would gain from integrating all of its operations.

You're reporting an error for "BMIS – Aug 2022 – L1 – Q3a – Business and organisational structure"

BMIS – Nov 2020 – L1 – Q5a – Introduction to information technology and information systems

Describes five accounting information systems that could enhance the operational efficiency of a company.

You're reporting an error for "BMIS – Nov 2020 – L1 – Q5a – Introduction to information technology and information systems"

BMIS – May 2021 – L1 – Q4b – Introduction to information technology and information systems

Explain the advantages of a Transaction Processing System (TPS) for a supermarket.

You're reporting an error for "BMIS – May 2021 – L1 – Q4b – Introduction to information technology and information systems"

BMIS – May 2016 – L1 – Q7a – Introduction to information technology and information systems

State five advantages that would accrue to a firm from installing a Transaction Processing System (TPS).

You're reporting an error for "BMIS – May 2016 – L1 – Q7a – Introduction to information technology and information systems"

Our offerings

Contact Info

Customer

Get In Touch

admin

Pick a Form