(A) (i) Define the term performance measurement. [2 marks]

(ii) Explain what the following terms imply in purchasing performance measurement:

(I) Evaluation performance. [2 marks]

(II) Economies. [2 marks]

(III) Effectiveness. [2 marks

(B)(i)Define the term key performance indicators (KPIS). [2 marks]

(ii)State the three steps followed when developing key performance indicators. [3 marks]

(c) State five characteristics of quantitative approaches of performance measurement. [5 marks]

(d) State five ways in which Activity Based Costing (ABC) contribute to performance measurement.[5 marks]

(e) (i) Define the term benchmarking. [2 marks]

(ii) State and briefly explain four types of benchmarking. [4 marks]

(f)State four purposes of purchasing management audit. [4 marks]

(g) State four criticisms raised against benchmarking as a purchasing performance measurement.[4 marks]

(h)State and briefly explain three main types of objectives that can be identified under Management By Objective (MBO) approach. [3 marks]