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AP Business with Personal Finance: Measuring Performance Using KPIs Drill 25

Drill 25 ·

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About This Drill

AP Business with Personal Finance: Measuring Performance Using KPIs Drill 25 is a practice drill. It contains 5 original questions created by Brian Stewart, a Barron's test prep author with over 20 years of tutoring experience.

A co-working space reads three KPIs against monthly targets and reports the result to its owners; uses an invented company and original figures.

Passage

Pinehaven Workspaces rents desks in a shared co-working office. Each month the manager compares three key performance indicators (KPIs) against the targets the owners set. The variance column shows actual minus target: a positive number means the KPI beat its target, and a number in parentheses means it fell short.

Pinehaven Workspaces: monthly KPIs versus target

KPIActualTargetVariance (actual - target)
Desks occupied (of 200)150160(10)
Member retention rate92%85%7%
Monthly revenue$48,000$50,000($2,000)

Questions in This Drill

  1. According to the table, which KPI beat its target this month?
  2. The 85% figure that Pinehaven set in advance as the level it wanted member retention to reach is best described as a:
  3. Monthly revenue came in at $48,000 against a $50,000 target. What was the actual revenue as a percent of target? Round to the nearest whole percent.
  4. The owners' main goal this quarter is to keep existing members from leaving. Based on the KPIs, why can the manager report that the firm is performing well on that specific goal?
  5. The manager must give the owners a quick monthly summary that shows, at a glance, how each KPI did against its target. Which format best communicates that to the owners?