Managing Finance in a Digital World - E1 Exam Practice Test

Question 1

A Company is considering to outsource its accounts payable According to the transaction cost theory of Williamson and Coase, which of the following involve activities and costs associated with policing and enforcing the agreement with the service provider?

A. Monitoring asset purchases associated with the agreement

B. Agreeing an acceptable service level agreement.

C. Determining which supplier is the cheapest.

D. Ensunri9lne outsourcer maintains the agreed service level.

Correct Answer: B

Question 2

T Company has recently appointed J as Chief Data Officer
One of the responsibilities of the appointment is to ensure compliance with the General Data Protection Regulations (GDPR) in force in the jurisdiction J's first action was to carry out an internal audit of GDPR compliance Which THREE of the following audit findings are indicators that T Company is compliant with GDPR''

A. Customers are given the option of unsubscribing from marketing emails

B. 98% of customer records were found to be accurate and up to date.

C. Customer data is deleted when no longer required.

D. Personal data is kept on a secure server, protected by a firewall

E. Most of the staff were fully aware of their data protection responsibilities.

Correct Answer: B,C,D

Question 3

Which of the following does NOT help to bring about operational improvement in the manufacturing process of an organisation?

A. Six Sigma

B. Market research

C. Kaizen

D. Just-in-Time

Correct Answer: B

Question 4

Which of the following organisational approaches is associated with the consistent delivery of a product or service?

A. JIT (just in time)

B. Kaizen

C. ISO 9000

D. Lean

Correct Answer: C

Question 5

Which of the following best describes a digital mindset?

A. Thinking shaped by the process of collecting organisation and analysing a large set of data to discover patterns.

B. Interpreting data that is analysed digitally to understand its content, formats, and structure

C. Understanding the concept of seeing beyond the individual elements of digital change

D. Understanding the process of harvesting data from source databases and locations

Correct Answer: C

Question 6

Place 'Management accountant' or 'Financial accounant' next to each of the following statements according to which applies.

Correct Answer:

Question 7

Company E operates a management consultancy business with four international offices. All offices specialise in helping new businesses, with all support operations dealt with by headquarters.Which of the organisational structures below would best describe Company E.

A. Matrix

B. Functional

C. Geographical

D. Divisional

Correct Answer: C

Question 8

Which TWO of the following are non-incorporated organisations?

A. P and Q who share joint responsibility for their business and all its debts

B. XY, an organisation whose owners can trade their shares publicly

C. K, who runs a business alone and is entitled to all profits

D. The British Red Cross Society, a well known charity

E. MN, a family-owned business sharing profits by means of dividends

Correct Answer: A,C

Question 9

M works for an organisation that adopts the principle of a total reward package for high achieving employees.
The organsiation recognises that there are more things to motivate staff than cash remuneration alone. M is striving for promotion and has been promised a company car and prominent car parking space at the front of the office if he achieves it. Which of Maslow's needs is being identified in the scenario above?

A. Ego

B. Self-fulfillment

C. Safety

D. Social

Correct Answer: A

Question 10

AB Company has recently produced a very successful brand of washing powder which has achieved high market growth and a high market share. According to the Boston Consulting Group (BCG) matrix what is the product's next stage of development?

A. Cash cow

B. Question mark

C. Dog

D. Star

Correct Answer: A

Question 11

A manufacturing company had major issues with quality standards and as a result received a number of complaints from its customers.
Due to this the company's senior management has considered some new objectives for the business.
Which of the following comply with all requirements of a SMART objective and will help to overcome this issue?
Select ALL that apply.

A. To reduce the number of complaints from 754 to 450 as soon as possible

B. To reduce quality issues significantly within eight weeks.

C. To reduce the number of complaints due to quality issues by 28% by the end of the year.

D. To increase output from 2,500 units per hour to 3,500 units per hour within a year.

E. To reduce defects from 53 per 1000 to 35 per 10,000 within 10 months.

F. To reduce the current level of defects from Oper 1,000 to 35 per 1,000 by the end of the month.

Correct Answer: C,E

Question 12

Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.
Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?

A. High tech and expensive filling machines in the factory.

B. An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.

C. A sales director who is well known and popular throughout the industry.

D. A building that has been designed specifically for manufacturing light bulb filaments.

Correct Answer: B

Question 13

G Company has recently undergone a series of redundancies meaning that, in the near future, opportunities for promotion of remaining staff are likely to be limited. If the company wishes to keep staff motivated, which of the following techniques should NOT be used?

A. Job enlargement

B. Job enrichment

C. Job standardisation

D. Job rotation

Correct Answer: C

CIMA Managing Finance in a Digital World - E1 Exam Practice Test

Latest Update

Useful Links

Contact Us