CIMA E1

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CIMA Managing Finance in a Digital World Sample Questions:

1. Arrange the stages of the product life-cycle in the correct order.

2. Which TWO of the following key business areas can a standard cost record assist with?

A) Pricing decisions
B) Receivables collection
C) Inventory level
D) Break-even analysis

3. Company M has been dealing with Supplier Q for many years. The Procurement Department has a very professional relationship with the supplier and it has recently started using electronic data interchange to place orders directly and on a much more frequent basis to assist production. A large part of the interaction with the supplier is now around price negotiation. According to Reck and Long's strategic positioning tool, which stage is Company M at with Supplier Q?

A) Supportive stage
B) Independent stage
C) Integrative stage
D) Passive stage

4. Which of the following best defines Business Process Re-engineering (BPR)?

A) The main aim of BPR is to save costs.
B) BPR involves fundamental changes in the way the organisation operates.
C) BPR is the continuous examination and improvement of processes.
D) BPR is based on the idea that 80% of an outcome is dependant on only 20% of the inputs.

5. Which of the following is the term used to describe the degree to which a task in an organisation is divided into a number of separate activities?

A) Span of control
B) Centralisation
C) Formalisation
D) Work specialisation

Solutions: