CIMAPRO15-E03-X1-ENG Online Practice Questions and Answers

DRAG DROP

LMN is a fast food manufacturer that makes 'Ready-meals'.

Place the appropriate stage of the Value Chain against each of the activities below:

Select and Place:

As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct. Which TWO of the following statements are TRUE? (Choose two.)

A. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.

B. Where there is a difference between CIMA's Code of Ethics and the company's Code of Business Conduct, the company's Code of Business Conduct takes priority.

C. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.

D. Both CIMA's Code of Ethics and the company's Code of Business Conduct include references to Confidentiality. Disclosure on public interest grounds is therefore prohibited.

E. A company's Code of Business Conduct can be rules based.

RRR is an insurance company which maintains an extensive database of its customer transactions over the last 10 years. RRR is developing a new product and has carried out a SWOT analysis. Within which of the following aspects of the SWOT analysis would RRR include its customer database?

A. Opportunity

B. Threat

C. Weakness

D. Strength

STU is a hospital that is wholly funded by its national government. In the last five years it has seen its funding cut by over 30% due to budgetary pressure on the government, caused by a global recession. As a result, the senior management team of STU has had to make some very difficult decisions about prioritizing how it spends the funds it receives from the government. Its main strategies have been to reduce the number of administration staff and nursing staff by 20%, in order to reduce its costs. It has also stopped providing a number of services to patients, including its counselling services and its physiotherapy unit.

Which of the following strategies has STU adopted to manage its reduced funding? (Choose all that apply.)

A. Liquidation

B. Divestment

C. Retrenchment

D. Facilitation

E. Turnaround

QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.

QWE introduced multidimensional performance measures into its management control systems 3 years ago. These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.

The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.

According to Fitzgerald and Moon's Building Block model, where does the problem lie?

A. Standards and Rewards

B. Standards, Dimensions and Rewards

C. Dimensions and Standards

D. Dimensions and Rewards

PQR is a charity which has an excellent reputation within its home country. PQR employs over 300 highly experienced staff and has 200 skilled volunteers. PQR's funding mainly comes from donations from the public but its public profile is low compared to larger, more publicized charities.

Due to a recent recession, public donations to PQR have fallen in the last five years, but demand for its services continues to grow.

The government of the country in which PQR operates is encouraging greater collaboration between charities and there have been several recent successful mergers within the charity sector. PQR has recently been approached by a high profile and well funded charity, DDD, with a merger proposal. DDD offers complementary services to those offered by PQR.

Which TWO of the following factors would most likely be considered as an 'opportunity' for PQR? (Choose two.)

A. Highly experienced staff

B. Donations from the public

C. Growing demand for its services

D. The excellent reputation of DDD

E. Merging with DDD

'Big data' refers to datasets whose size is outside the ability of typical database software tools to capture, store, manage and analyze.

Which of the following statements is NOT a valid statement with regard to 'big data'?

A. 'Big data' will require the right infrastructure, incentives and safeguards to address public concerns.

B. As technology advances overtime, the size of datasets that qualify as 'big data' will also increase.

C. The definition of 'big data' can vary by sector, depending on the software tools and dataset sizes common to a particular industry.

D. Sufficient analytical and managerial talent is available to exploit the opportunities associated with 'big data'.

Which of the following statements is NOT a role for Management Accountants involved in the strategy development process?

A. Consider and raise awareness of the ethical impact of proposed strategic decisions.

B. Integration of financial and non-financial information.

C. Writing the Annual Report.

D. Assist the Board in determining risk appetite.

Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A. They are less expensive to measure than financial performance measures.

B. They present a wider view of organizational performance than financial performance measures.

C. They are less subjective than financial performance measures.

D. They are not distorted by inflation.

E. They are easier to measure than financial performance measures.

An organization must acquire suitable hardware and software in order to implement a knowledge management strategy so that knowledge can be stored and communicated.

Which of the following would be appropriate systems to use in a knowledge management strategy? (Choose all that apply.)

A. Intranet

B. Local area network

C. Social media

D. Ledgers and journals

E. Internet

F. Groupware