PRACTICE EXAM

DLMBPM01 496
MUSTERLÖSUNG

QUESTION 1 OF 9
Marked out of 3.00

ng
The A-1 AG achieved a net income of 23.5 million EUR and has a total

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shareholder equity of 127.6 million EUR. The average total assets have a

ar
value of 345.4 million EUR. How high was the return on equity?

Le
Select one:

e
9.35%

nc
18.42%

12.47% ta
is
6.80%
D
BH

The correct answer is: 18.42%

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Ex
e
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24.03.2017 1/8 (c) IUBH

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MUSTERLÖSUNG

QUESTION 2 OF 9
Marked out of 3.00

ng
What are the three interrelated elements a performance measurement

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system usually consists of?

ar
Le
Select one:

e
Combined measures

nc
Supporting measures
IT
ta
is
D

Individual measures
Balanced measures
BH

IT
IU

Individual measures
am

Combined measures
A supporting infrastructure
Ex
e

Strategy
tic

Vision
Supporting infrastructure
ac
Pr

The correct answer is:

Individual measures
Combined measures
A supporting infrastructure

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 DLMBPM01 496
MUSTERLÖSUNG

QUESTION 3 OF 9
Marked out of 3.00

ng
Which of the following aspects is not a key element in the theory of rational

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management?

ar
Le
Select one:

Rationalization

e
nc
Specialization
Improvement of work conditions

Standardization ta
is
D

The correct answer is: Improvement of work conditions

BH
IU

QUESTION 4 OF 9
Marked out of 3.00
am
Ex

The performance metric "manufacturing excellence" measuring cycle time

and unit cost would be included in which of the Balanced Scorecard
perspectives?
e
tic

Select one:
ac

Innovation and learning perspective

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Financial perspective

Internal perspective

Customer perspective

The correct answer is: Internal perspective

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 DLMBPM01 496
MUSTERLÖSUNG

QUESTION 5 OF 9
Marked out of 3.00

ng
Which of the following is characteristic of intangbible assets?

ni
ar
Select one:

Le
They have a finite application.

e
They are best leveraged through alignment.

nc
They produce known returns.

They are best leveraged through control.

ta
is
D
The correct answer is: They are best leveraged through alignment.
BH
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 DLMBPM01 496
MUSTERLÖSUNG

QUESTION 6 OF 9
Marked out of 3.00

ng
Which of the following statements regarding key performance indicators and

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performance management is correct?

ar
Le
Select one:

Communication of key performance indicators throughout the organization and how they

e
relate to performance goals is vital.

nc
When evaluating key performance indicators, it is not necessary to analyze how the
performance compares to that of competitors.
ta
is
When communicating key performance indicators, it is sufficient for the senior executive
staff to understand how they relate to performance goals.
D

It is sufficient to define key performance indicators and track them over time in order to
BH

achieve long-term performance goals.

IU

The correct answer is: Communication of key performance indicators throughout the
organization and how they relate to performance goals is vital.
am
Ex
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QUESTION 7 OF 9
Marked out of 3.00

ng
Which of the following researchers suggested quantitative measures to

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determine the best options for boosting performance in scientific

ar
management?

Le
Select one:

e
nc
F. Taylor
G. Gantt
H. Ford ta
is
D

F. Taylor
BH

G. Gantt
F. Gilbert
IU
am

F. Taylor
M. Weber
Ex

F. Gilbert
e
tic

H. Fayol
G. Gantt
ac

H. Ford
Pr

The correct answer is:

F. Taylor
G. Gantt
F. Gilbert

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 DLMBPM01 496
MUSTERLÖSUNG

QUESTION 8 OF 9
Marked out of 6.00

ng
a. In the context of customer lifetime analysis, explain the terms:

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autonomous revenue

ar
up-selling revenue
cross-selling revenue

Le
b. Give examples for each of the terms.

e
nc
ta
is
1) The autonomous revenue represents factors which are not directly influenced by the
organization or only affected by standard marketing measures such as TV advertising.
D

Therefore, this refers to basic revenue excluding targeted measures to increase sales or cross
sales. Calculation is usually performed by means of traditional procedures of demand forecast.
BH

2) Up selling revenue is yielded by the additional selling of the same product as a consequence
of increased purchase frequency and intensity in long-life relationships (quantity effect, i.e.
IU

higher purchase amount per transaction and more transactions per period). Up selling revenue
also emerges from a price effect which is created by selling higher-priced substitutes of the
same category to loyal, long-term customers who are less price-sensitive. Therefore, up selling
am

revenues symbolize the retention value of a customer.

3) Cross selling revenues, in contrast to up selling ones, can be defined as the selling of
Ex

complementary products or product categories which have not been bought from the vendor
such as selling a life insurance to an automobile insurance customer.
e
tic

QUESTION 9 OF 9
ac

Marked out of 18.00

Pr

Your company plans to conduct a customer lifetime value analysis.

a. Explain the main idea and goals of this concept.
b. Describe in detail the different steps to calculate the customer lifetime
value.

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For many years organizations focused primarily on acquiring new customers, without taking into

ng
consideration how many purchases an individual customer made. Acquiring a large number of
customers who only purchase once is not an optimal strategy. Instead, businesses should

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concentrate on identifying how much each customer contributes to the overall profit and
performance of the organization.

ar
The Customer Lifetime Value tries to provide this information by measuring the worth of a

Le
customer to the company. With this information businesses can rank order their customers and
formulate different strategies. In other words, Customer Lifetime Value helps organizations to
treat customers differently based on their overall contribution to the company’s returns. As a

e
result Customer Lifetime Value addresses the following issues:

nc
• Calculating Customer Lifetime Value helps companies to understand how much they can
invest in retaining a customer while still achieving a positive Return on Investment (ROI).
ta
• Once the organization has calculated the Customer Lifetime Value it can optimally allocate its
is
limited resources to maximize returns. Based on a customer-centric view the Customer Lifetime
Value framework helps to select the right marketing strategies and activities.
D

• Using Customer Lifetime Value as a marketing metric provides an incentive for managers to
place greater emphasis on customer service and long-term customer satisfaction for the right
BH

set of customers instead of maximizing short-term sales.

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