CIMA CIMA Certification E1

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CIMA Managing Finance in a Digital World Sample Questions:

1. Which of the following can facilitate innovation within an organisation?
Select ALL that apply.

A) The communications system
B) A blame culture
C) A formal structure
D) The leadership style

2. Which of the following functions is associated with the operating core of an organisation?

A) Strategy evaluation
B) Manufacturing and production
C) Process standardisation
D) Catering services

3. Which of the following is a reason why businesses need to prepare statutory reports?

A) To help compare budget with actual performance.
B) To decide on their foreign exchange hedging policy.
C) To inform the investors how profitable the business is.
D) To ensure they have enough inventory on hand for production.

4. Working in the finance function of a manufacturer of baked goods, T has been asked to support the monitoring of key performance indicators (KPIs) within the operations function of the company.
Which of the following would be a suitable KPI to help measure quality costs?

A) Amount of inventory damaged in warehouse storage
B) Freight costs per bakery unit sold
C) Labour utilisation rate in the bakery.
D) Time taken to deliver a customer order

5. Mitch owns a small furniture business, which he is keen to grow.
Which of the following would MOST benefit the growth of Mitch's business:

A) Forming an alliance with a local supplier.
B) Becoming a shamrock organisation.
C) Becoming a network organisation.
D) Reducing the price of all products by a third.
E) Outsourcing all complementary and residual competencies.

Solutions: