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Free Managing Finance in a Digital World Practice Questions

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Total Questions : 336

Start with our free E1 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real CIMA Operational exam. Each E1 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your CIMA weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 1

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?

Options:

A.  

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

B.  

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

C.  

High tech and expensive filling machines in the factory.

D.  

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

Discussion 0
Question # 2

Which of the following is NOT a feature of a strategic level information system?

Options:

A.  

It has a long term focus.

B.  

It helps middle managers to monitor and control.

C.  

It has high levels of uncertainty and subjectivity.

D.  

It handles information which is valid for the whole organisation.

Discussion 0
Question # 3

Which of the following is an advantage of outsourcing?

Options:

A.  

Cost savings may be made

B.  

Core competence may be strengthened

C.  

Data confidentiality is stengthened

D.  

Continuity is guaranteed

Discussion 0
Question # 4

Which of the following effects on tax is a benefit of the implementation of Corporate Social Responsibility (CSR) strategies?

Options:

A.  

Reduction in environmental taxes

B.  

Reduction in value added tax

C.  

Reduction in income tax

D.  

Reduction in corporation tax

Discussion 0
Question # 5

YZ Company has grown rapidly and has recently recruited a finance director to set up a more structured finance function. During this process care will be needed to ensure effective lines of communication between different disciplines within the whole function and to recognise the interdependencies.

 

Which of the following are examples of the interdependence of elements of the finance function?

 

Select ALL that apply.

Options:

A.  

Variance analysis reporting

B.  

Taxation management

C.  

Budget management

D.  

Management reporting

E.  

Statutory financial reporting

F.  

Internal auditing

Discussion 0
Question # 6

Which THREE of the following features are likely to indicate that an organisation is following the marketing concept as a business philosophy?

Options:

A.  

Market research

B.  

Marketing as a management process

C.  

Customer satisfaction surveys

D.  

Competitive pricing policies

E.  

Production cost controls and regular process reviews

F.  

Imaginative promotional campaigns

Discussion 0
Question # 7

SSS has adopted some outsourcing practices in order to improve efficiency of its operations. One of the managers has been made aware that the supplier is now also working for a competitor. Which TWO of the following should SSS be concerned with regarding the supplier's and ompetitor's new relationship?

Options:

A.  

Risk of loss of confidential information

B.  

Risk of continuity of supply 

C.  

Risk of increased transaction costs

D.  

Risk of losing core competence

Discussion 0
Question # 8

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

Options:

A.  

BPR involves fundamental changes in the way the organisation operates.

B.  

BPR is the continuous examination and improvement of processes.

C.  

BPR is based on the idea that 80% of an outcome is dependant on only 20% of the inputs.

D.  

The main aim of BPR is to save costs.

Discussion 0
Question # 9

Running shoe manufacturer Bo Joggs have a long established method to ensure their product is right first time. The aim is to reduce the amount of quality checking. Internal processes and procedures are closely

monitored so that the running shoes are of the highest standard before going to market.

What are Bo joggs likely to do to ensure this quality is maintained?

Select ALL that apply.

Options:

A.  

Use the highest quality fabric.

B.  

Employ skilled shoemakers.

C.  

Train staff.

D.  

Have the best quality shoe-making machinery.

E.  

Use a Kaizen method of production.

F.  

Adopt the Pa re to rule.

Discussion 0
Question # 10

Capturing and utilising big data is now a key element of many organisations' value adding process. Which of the following best describes the attribute of big data velocity*?

Options:

A.  

The capability to process internal and external data

B.  

The capability to validate data to tolerable levels

C.  

The capacity to process large quantities of data

D.  

The capability to swiftly capture and process data in real time

Discussion 0

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