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E1 TEST QUESTIONS

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1
The finance function plays three key roles, it:

- ENABLES an organisatoin to create and preserve value
- SHAPES HOW an organisation creates and preserves value
- NARRATES HOW an organisation creates and preserves value

Identify which THREE of the following activities of finance ENABLE value to be created and preserved?

  • Forecasting
  • Planning
  • Performance Management
  • Control
  • Resource allocation
  • Financial Reporting
2
Identify which of the following concepts can be described as 'the idea that a company should be sensitive to the needs and wants of all staskeholders in its business operations, not just the shareholders'
  • Corporate social responsibility
  • Corporate identity
  • Corporate governance
  • Corporate reporting
3
Karim is a management accountant of a small retail company. Each month, Karim reports performance to the board. He compares the performance of each shop to its budget for the month. He also forecasts the performance of the company over the remainder of the financial year.

The CEO of the retail company is holding a meeting with the share holders, at which he plans to brief them on the companys prospects. He has asked Karim to increase the full year forecasts for revenue and profit, as the CEO believes that the shareholders will be dissapointed with the current forecasts

Identify which of the CIMA ethical principals is threatened by the above scenario
  • Integrity
  • Objectivity
  • Confidentiality
  • Professional behaviour
4
Select which THREE of the following tasks ENABLE an organisation to create and preserve value
  • Forecasting
  • Planning
  • Performance management
  • Resource allocation
  • Control
5
Finance and HR need to work more closely, with 'people as assets' as their focus.

Identify which of the following is an example of this approach to co-ordination between finance and HR
  • Setting a budget for employment costs.
  • Monitoring the cost of training
  • Designing reward schemes
  • Measuring staff engagement
6
The marketing department has recently launched a new toy - the rockabee - and the marketing manager is very concerned by your most recent report which shows that the product is making a loss this quarter. You are less concerned, because you know that sales volumes are currently low and the initial promotion costs are high.

You are discussing KPI's for the Rockabee withthe marketing manager.

At present you have agreed that a suitable KPI might be to 'achieve quarterly break-even, on a fully costed basis, as soon as possible'. The marketing manager agrees that this can be done, and is confident that the sales volumes will continue to rise. However, you are stilkl concerned that the KPI does not meet all the components of the SMART acronym.

Identify which of the componenets is NOT being met by the suggested KPI
  • S
  • M
  • A
  • R
  • T
7
You are Finance Business Partner - Marketing for Jollybest, a manufacturer of childrens toys.

The marketing department has recently launced a new toy - The Rockabee - and the marketing manager is very concerned by your most recent report which shows that the product is making a loss this quarter. You are less concerned, because you know that sales volumes are currently low and the initial promotion costs are high.

Identify which of the following techniques will allow you to address the concerns of the marketing manager.
  • Standard costing
  • Marginal costing
  • Absorption costing
  • Life cycle costing
8
The marketing mix is the set of controllable variables that a firm blends to produce desired results from its chosen target market. The extension of the traditional marketing mix to include three additional P's acknowledge that there are fundamental differences between products and services and therefore services marketing assumes a different emphasis to product marketing.

Select which THREE of the following are the 'service extension' P's
  • Process
  • Place
  • People
  • Promotion
  • Price
  • Physical Evidence
  • Product
9
One of the ways in which the finance function interacts with the operations function is in the established and monitoring of suitable key performance indicators (KPI's)

Select the THREE of the following that would be suitable for operations
  • Labour utilisation rate
  • Time taken to deliver a customer order
  • Time taken to resolve IT breakdowns
  • Level of customer discounts given
  • Quality costs (prevention, detection, internal failure, and external failure
10
Although all operations processes are similar in that they all transform inputs into outputs, they do differ in a number of ways, four of which, known as the four V's, are particularly important. Each of these affect the way in which an operation will be organised and managed.

Select the FOUR V's of operations from the following
  • Volume
  • Velocity
  • Variety
  • Veracity
  • Variation
  • Visibility
11
Financial Planning and Analysis (FP&A) specialists play a crucial role in organisations

Select which THREE of the following are normally roles of FP&A
  • Gauging the organisations overall financial health using key financial ratios (ie current ratios)
  • Assessment and evaluation of the many decisions and potential outcomes of a particular project.
  • Working with independant departments to prepare budgets and consolidate them into an overall budget
  • Looking at the effectiveness of the organisations current investments and comparison to other ways it may utilise its cash flow (for example, other investments or an increased dividend payment)
  • Managing working capital items
12
Traditional management accounting is considered to now be a component of the lowest or 'operational' level of the finance function

Which of the following statements, relating to traditional management accounting, is FALSE
  • Management accountants will use financial accounting records as a source of data for their work, but they will also use other sources of internal and external data
  • Management accounting is the provision of information to help managers and other internal users in their decision making
  • A cost scheduel lists various expenses involved in manufacturing units of a product
  • There are legally required formats for management accounts
13
In the diamond shaped model of the modern finance function, the lowest level of smart finance factories consists of a number of tasks

Select which THREE of the following tasks are coinsidered to be part of this level
  • Financial reporting
  • Project appraisal
  • Treasury management
  • Financial planning and analysis
  • Internal audit
14
Identify which of the follwing, in relation to the transformation of the finance function, can be described as 'working with internal and external stakeholders to influence and shape how the organisation creates and preserves value'
  • Strategic business partnering
  • Shared services
  • Outsoucing
  • Management accounting
15
Identify which of the following can be described as 'a situation whereby a usually large, multinational, organisation with processing centres in all or several of the countries in which it operates chooses to consolidate these activities at one site
  • Outsourcing
  • Insourcing
  • Shared Services
  • Offshoring
16
The basic activites of the finance function are still relevant in todays organisations but there has been a shift in emphasis regarding the importance of each of the activities.

Select which THREE of the following statements are TRUE
  • Historically, the overall mandate of the finance function was to focus on organisational efficiencies and to reduce operational costs
  • RPA (robotic process automation) is a software based approach that replicates user actions to reduce or eliminate human intervention in mundane, repetitive and manually intensive processes
  • The finance function will work largely in isolation to drive business transformation that creates shareholder value
  • Technology has replaced the finance function, making it obsolete
  • Technology allows the contemporary finance function to refocus its energy on revenue and value creation
17
Select which of the following is an organisation structure model that aims to combine the benefits of a divisional structure and a functional structure
  • Entrepreneurial
  • Machine bureaucracy
  • Adhocracy
  • Matrix
18
Select which THREE of the following are disadvantages of the entrepreneurial model of organisation structure
  • This type of structure is usually suited to small companies where due to the size there is no career path for the employees
  • It's success relies heavily on the capabilities of the owner manager
  • Due to the longer chain of command, decisions will be made more slowly
  • If the organisations grows, one person or a few people will not be able to cope with the increased volume of decisions
  • Empire building
19
Mintzberg suggested that an organisation can be analysed into six building blocks and that effective co-ordination will be needed to integrate the building blocks into one cohesive unit.

Identify which of the following is a description of Mintzbergs 'technostructure'
  • This is responsible for designing procedures and standards
  • This is responsible for the basic work of the organisation, i.e producing the product or providing the service
  • This provides services to the organisation which support operations/production
  • This links the strategic apex to the operating core and includes middle and lower level management
20
Data science is a very new field. It is a mix of data experts with a background in mathmatics, statistics, programming and computer science. Organisations looking to capitalise on big data using data analytics are increasingly employing specialist data scientists.

Identify which of the following statements is FALSE, regarding data science and management accounting
  • Data scientists are individuals with the ability to extract meaning from and interpret data, which requires both tools and methods from statistics and machine learning.
  • Data scientists should act as an interface between the business functions and the management accountants
  • Management accountants should act as an interface between the business functions and the data scientists
  • Management accountants should partner with data scientists to ensure the work they undertake is deliberate and targeted with clear objectives to ultimately support or enhance the business
21
Ali works in the management accounting function of a small retail business. He is responsible for providing performance information to store managers.

The business has recently moved from providing a monthly 'briefing book'', with weekly flash reports to an online system that provides real-time analysis. Believing the project to be completed. Ali was a little disappointed to be asked to meet the operations director of the business to discuss her concerns.

The operations director was very pleased with the new system, but she expressed concerns that the information provided was very detailed and numerical. She asked Ali if there was any way that the information might be made more user friendly, perhaps by using graphics to give a clear overview of the performance, with the detailed supporting datas hidden from view unless required.

Ali is now considering what technology might assist in meeting the operations directors request.

identify which of the following would help.
  • Data mining
  • Data warehousing
  • Data analytics
  • Data visualisation
22
A data model considers the data of an organisation in a systematic way that allows it to be stored and retrieved in an efficient and effective manner. the data modelling process consists of three levels.

Select which THREE of the following are the levels of data modelling
  • Strategic
  • Physical
  • Tangible
  • Conceptual
  • Logical
23
Identify which of the following can be described as 'the analysis of data to understand its content, formats and structure'
  • Data extraction
  • Data transformation
  • Data processing
  • Data profiling
24
In designing the future information systems of the organisation, management accountants should recognise the information needs of a number of stakeholders.

Select which THREE of the following might be needed by shareholders
  • The future prospects of the business
  • Environmental impact
  • Staff performance
  • Sales by customer
  • Major risks
25
You are attending a presentation given by a junior member of the IT function. In their presentation, they made the following three comments

1. Data is the term we use to describe what we collect, and input into the information system.
2. The data we collect is stored in a data warehouse or 'data lake', on the cloud. That is a single, large collection of related data, assessed by systems throughout the organisation.
3. Data is extracted from the data lake, then analysed, to become information that is valuable to decision makers.

Select which of the following statements is true regarding the comments above.
  • All the comments are incorrect
  • Only one of the comments is correct
  • Two of the comments are correct
  • All three of the comments are correct
26
Select which THREE of the following statements are correct
  • Data is information that has been processed, to make it valuable for decisioon making
  • We collect information as a set of raw facts
  • Knowledge is information plus exerience
  • Data visualisation is a process of making data more understandable for users
  • Processing is the link between data and information
27
Identify which of the following is an automated program which browses the internet, methodically extracting target data
  • a metatag
  • a web crawler
  • a hyperlink
  • a worm
28
Identify which of the following techniques can be defined as "bringing data to life in an easy to understand and intuitive fashion"
  • Data visualisation
  • Big data analytics
  • Key performance indicators
  • Machine learning
29
Big data and data analytics are expected to enhance the quality and relevance of internal audit assignments. Technology advancements in big data and analytics are fundamentally changing how the review if internal controls and systems are carried out.

Identify which of the following statements is true regarding the impact of big data analytics on internal audit
  • Big data will make the detection of fraud more difficult, due to large volume of data.
  • Because of the huge data volumes, audit sample sizes will fall as a percentage of the total data set.
  • The use of big data analytics will allow internal audit to focus on business critical activities
  • Internal audit will become increasingly reliant on the work of the organisations data scientists, as big data analytics are too complex for auditors to understand
30
Kitchener works in the finance function of a large chemicals company. He is currently finance business partner to the R&D function. Each month, Kitchener provides the Director of R&D with a briefing book consisting of detailed financial forecasts and variance analyses.

The R&D Director has asked Kitchener to join a project team to change the way information is provided. In future, the information is to be real time (rather than monthly) and provided as a series online, interactive graphs and charts. The user of the information will be able to customise the way the information appears and drill down into the detailed data behind the information

Identify which of the following approaches is being taken by the new R&D information systems
  • Data mining
  • Data warehousing
  • Database management
  • Data visualisation
31
Topley is a retail equipment manufacturer,supplying major retailers and supermarkets with a range of refrigeration and freezers.

Toilets newest range of equipment (the elite) is able to inform the retailer when it's internal temperature rises above a pre programmed range. The retailer can select the parameters,and is informed of any problems by email or SMS, identifying which piece of equipment is affected

Identify which of the following is being described above
  • Cloud and mobile
  • The internet of things
  • Artificial intelligence
  • Machine learning
32
The development and use of ever more sophisticated digital technology means the role of the finance professional continues to evolve. Elements such as big data and data analytics, artificial intelligence and data visualisation present significant opportunities as well as challenges to both businesses and individuals

Select which THREE of the following statements are correct, regarding the likely impact of big data and analytics on the finance function
  • Big data and data analytic are expected to enhance the quality and relevance of internal audit assignments.
  • Big data and analytics will lead to a reduction in business partnering, as the management accounting role becomes more complex and departments are centrlised
  • Management accountants will become increasingly isolated and obsolete, as business/function staff deal directly with IT specialists and data scientists
  • In management accounting, big data will contribute to the development of more efficient and insightful management control systems and budgeting processes.
  • In financial reporting, big data can assist with the creation and improvement of accounting standards
33
Cloud technology is impacting the provision of computing services within organisations including the finance function. This has wide ranging impacts on the way peope and organisations work.

Identify which THREE of the following are aspects of finance function work that are being affected by cloud technologies
  • Improved insight and understanding
  • Improved collaboration
  • Flexible working
  • Easier integration
  • Reduced transaction costs
34
3-D printing is an example of a process known as additive maufacturing, where an object is created layer by layer.

Select which THREE of the following are advantges of 3-D printing.
  • Speed
  • Economies of scale
  • Less waste
  • Customisation
  • Creates employment
35
The internet of things describes the network of smart devices with inbuilt software and connectivity to the internet allowing them to constantly monitor and exchange data.

Select the THREE of the following which are potentially part of the internet of things.
  • A refridgerator
  • A laptop PC
  • A car
  • A smart watch
  • Smartphone
36
Within the information to impact model of the structure of the finance function which activity matches with the analysing function?
  • Reporting
  • Questioning
  • Developing solutions
  • Acumen
37
Whyte is a clothing retailer.

As part of a project to improve effectiveness, Whyte has changed the way its procurement process works for existing inventory items. When the inventory level of an item falls to pre-programmed level, a computer application automatically re-orders a quantity determined by an algorithm incorporating several variables such as forecast demand, weather patterns, and the results of previous procurement decisions. Previously, this decision was made soley on the basis of a simple algorithm, but he app now changes the decision rules to take account of its previous mistakes, updating the algorithm.

Identify which of the following approaches has been adopted by Whyte.
  • Liner programming
  • Artificial intelligence
  • A decision tree
  • The internet of things
38
Whyte is a cloting retailer.

As part of a project to improve efficiency, Whyte has changed the way its procurement process works for existing inventory items. When the inventory level of an item falls to a pre-programmed level, a computer application automatically re-orders a quantity determined by an algorithm incorporating seeveral variables such as forecast demand and weather patterns. previously, this decision was made by a member of the procurement team.

Identify which of the following approaches has been adopted by Whyte.
  • Process re-engineering
  • Process innovation
  • Process automation
  • Process costing
39
Management accountants connect the activities performed by other functions, to enable them to create and preserve value.

Identify which of the following management accounting activities connects operations (which includes procurement) to another function (other than finance).
  • Calculating monthly variance for operations
  • Recording material purchases
  • Calculating payroll entries for operations staff
  • Writing off obsolete raw materials inventory
40
Jonjo is a small manufacturing company. It has just purchased a new production machine.

Select which THREE of the following data are relevant when recording the purchase
  • Method and period of depreciation
  • Date of purchase
  • Output produced
  • Maintenance time required
  • Installation cost
41
Which of the following structures is best placed to address the need for co-ordination between different functions in very complex situations?
  • Functional
  • Divisional
  • Matrix
  • Geographical
42
KSX uses one location to consolidate the organisations transaction processing activities. Which of the following describes this process?
  • Shared service centres
  • Business process outsourcing
  • Service centre outsourcing
  • Shared process centres
43
Transaction costs are expenses resulting from which of the following?
  • Materials procurement
  • Flexible working arrangements
  • Outsourcing
  • Lobbying
44
There are different types of accounting functions within a business

Which of the following would be responsibilities of the financial accounting function?

Select all that apply
  • Maintaining a fixed asset register
  • Sourcing finance
  • Variance analysis
  • Statutory reporting
  • Managing efficient working capital
  • Cost control
45
Which THREE of the following are activities fundamental to the role of the finance function?
  • Customer relationship management
  • Preparation of statutory reports
  • Recruitment of a new finance assistant
  • Working capital reporting and control
  • Preparation of plans, budgets and forecasts
  • Selection of new suppliers of raw materials
46
FVN deals with the importing and exporting of plastic components for medical research.

The movement of goods and supplies across country borders is complicated from a reporting perspective, as well as dealing with the authorities to account for the VAT

Which of the following would communicate directly with the VAT authorities regarding any reporting queries?
  • Corporate reporting
  • Taxation
  • Financial planning and analysis
  • Financial reporting
47
The board of directors of DWC need to establish which of the companys product lines are profitable and which arent.

They're keen to establish which, if any, should be dicontinued and which have the possibility for further development

Which of the following would be able to provide both qualitative and quantitative relevant information for the directors of DWC?
  • Project management
  • Financial planning and analysis
  • Taxation
48
Which THREE of the following relate to strategic partnering for value?
  • May be provided by individual finance function employees
  • It is provided to the organisations senior leadership team
  • Liasing effectively with internal and external stakeholders
  • Executing and funding strategies set out by the CEO
  • Appraising a potential capital project
  • Supports major strategic decisions
49
Which of the following relates to strategic business partnering (level 2) within the diamond shaped finance function?
  • Working capital management
  • Project management
  • Executing initiatives
  • Communicating insight
50
Which TWO of the following are part of the responsibility of the CFO in relation to the strategic leadership of the finance team?
  • Executing and funding corporate
  • Communicating insight to influence users
  • Liasing effectively with external stakeholders
  • Prevention and detection of fraud
  • Cost benefit analysis of investment
51
Which of the following roles provides the strategic leadership of the finance function?
  • Finance director
  • Financial controller
  • Financial manager
  • Finance operating manager
52
As part of DCL's commitment to drive efficiency within the workforce they have introduced new inventory systems that will increase automation within its workforce.

Which of the following features of the fourth industrial revolution is DCL implementing?
  • Improved asset management
  • Machine learning
  • Fusion
  • Employment
53
KFW controls a large global network of manufacturing facilities that produces air conditioning units.

Which TWO of the following advantages should KFW expect as a result of the 4th industrial revolution?
  • Increased opportunities to develop existing products
  • Reduced requirement for automation to replace jobs
  • Increased investment and asset management costs
  • Increased customer expectations for supplementary services provided
  • Increased scope for utilisation of machine learining across the network
54
DXK is a professional education provider with both online and physical classes held for students.

The board of directors feel that a shift to more online classes would be logical shift in line with advances thanks to the 4th industrial revolution and are keen to focus on reducing the carbon footprint of those reduced physical classes that they do continue to run.

Which of the features of the 4th industrial revolution are the directors of DXK focusing on?
  • Employment
  • Artificial intelligence
  • Improved asset management
  • Fusion
55
JSQ company is reviewing its current information systems and is seeking some advice on using cloud technology as an IT strategy.

Which THREE of the following situations would cloud technology be a sensible IT strategy?
  • Use of bespoke software
  • High impact if data is lost
  • Requirement to reduce upfront costs
  • High levels of in-house IT skills
  • Unreliable internet access
  • Frequent software changes
56
In relation to automation within the finance function, which of the options below completes the following sentance:

Human interaction is required when.....
  • There is an unusually large volume of transactions to process
  • There is a requirement to apply knowledge across multiple tasks
  • Errors are commonly found during these specific processes
  • Communication skills are vital to complete the task
57
R is attending a presentation at work concerning Corporate Digital Responsibility (CDR) lead by their line manager A.

A is discussing how the company can take steps to ensure that customers are sufficiently incentivised to provide more data with each interaction, and that this will become more the norm over time without needing to be asked.

Which area of CDR is A discussing?
  • Customer expectations
  • Data value
  • Digital stewardship
  • Digital inclusion
58
Which THREE of the following are correct statements concerning the principals of data protection legislation in the uk?
  • Data may be held for any legitimate purpose
  • Companies may correct data they believe to be inaccurate
  • Individuals must be notified within a month of data collection
  • Companies must ensure data is handled with appropriate security
  • Data must only be used for explicit purposes
  • Data must be kept up to data and not excessive
59
Information for decision makers is critical to the smooth running of organisations.

Which level of the organisation would hold information relating to make longer term decisions for the overall direction of the company?
  • Operational
  • Management
  • Strategic
  • Tactical
60
J works for a refridgeration company and is currently looking into investment of new freezer and refridgeration units for storage purposes

The investment is a substantial amount and will impact the volume of storage capacity of the company for the coming financial period and beyond

What level of decision making is J working?
  • Operational
  • Management
  • Strategic
  • Tactical
61
The finance function can use data and information to assist sales and marketing to better understand customers through the use of effective Customer Relationship Management systems.

Which of the following can make advertising and communications more personalised to meet individual customers needs?
  • Improved service
  • Market segmentation
  • Past buying trends
  • Advertising costs
62
Which TWO of the following are features of a digital asset management system?
  • Single central location for storage and access
  • Enables complex supply chains through knowledge sharing
  • Access is only provided for those with authorisation
  • Incorporates embedded sensors and connectivity in machines
  • Provides past information about buying trends
63
DBU is a cloud accounting software provider.

Before its new products and editions go to market, DBU considers live market data to compare and benchmark across the entire industry. This ensures that there is less need for discounting later and avoiding the negative impact on the company image.

Which areas of the company is the data of most use to DBU?
  • Segmentation
  • Products
  • Pricing
  • Targeting
64
TFC is a motorway contracting company that specialises in the development of smart motorways.

The way that these smart motorways work is to introduce traffic sensors on stretches of motorway to monitor the flow and build-up of motor vehicles. This enables measures to be taken to resolve any issues, such as opening up additional lanes or activating temporary speed restrictions to control traffic.

What digital technology does TFC take advantage of?
  • Process automation
  • Data visualisation
  • Artificial intelligence
  • Internet of things
65
Which of the following statements in relation to blockchain is correct?
  • New transactions cannot be added to blockchain
  • Archived transactions can only be amended with permission from the majority of other users
  • A blockchain system ensures the same records are maintained by different users
  • When a transaction takes place, only the participants can see the details
66
Which of the following is the main immediate benefit of 3-D printing?
  • Reduced speed
  • customisation
  • Reduced cost
  • Increased accountability
67
Which THREE of the following are unstructured sources of dig data?
  • Web browsing history
  • Feedback from home smart meters
  • Email conversation threads
  • Purchase transaction records
  • Social media posts
68
Which THREE of the following are qualities determined as being desired attributes of a digital mindset?
  • Working in a creative and flexible way
  • Freely sharing digital approaches
  • Focusing on the individual elements of digital change
  • Focusing on lifelong learning
  • Dealing with complexity
69
Which stakeholder of the finance function is most likely to require data on internal progressions of employees?
  • Employees
  • Sales department
  • Shareholder
  • Human Resources
70
Which of the following stakeholders would be directly and routinely interested in data concerning the productivity of individual operations staff?
  • Production director
  • Suppliers
  • Production manager
  • Shareholders
71
Which of the following statements describes Data Extraction
  • This is the process of the newly cleaned and prepared data being uploaded for the destination database ready for use. This will often be to a data warehouse.
  • This is the process of harvesting data from source databases and locations.
  • The source data will be converted into a format suitable for the destination database and its ultimate intended use.
  • Prior to extraction the data needs to be analysed to understand its content, formats and structure. This then informs the data conditions built into the rules and code used in the extraction and transformation process
72
Which of the following would the financial function utilise to 'shape how' the company creates and preserves value?
  • Corporate financial reporting
  • Planning and budgeting
  • Variance analysis
  • Forecasting and resourse allocation
73
Which of the following terms is NOT assiciated with data visualisation?
  • Simplicity
  • Conceptual
  • Information
  • Users
74
Data modelling at this level is business orientated and practical, considering the business data and its requirements.
  • Conceptual
  • Physical
  • Logical
  • Process
75
Which THREE of the following are associated with effective data visualisation?
  • Use of technical jargon for explanation
  • Extensive training for understanding
  • A variety of formats for preference
  • Intuitive visuals to guide the user
  • Tailored to the users of the data
  • Aimed at strategic-level decision makers
76
Which of the following best describes corporate governance
  • A set of guidlines for internal and external stakeholders relationships
  • A set of processes by which a company is directed, administered and controlled
  • A set of guidelines for the furthering of humanitarian and social causes
77
Which of the following is best described as gathering external data from a range of sources?
  • Research & development
  • Collation and communication
  • Environmental scanning
  • Informal data collection
78
As part of communicating insight, it is vital that the caracteristics and qualities of management information are adhered to.

One of the characteristics of good information is that it should be needed by the reader and should ideally enable the capacity to drill down into more detail, where required.

Which of the following is described above?
  • Accurate
  • Understandable
  • Adaptable
  • Relevant
79
TBO os a private hire vehicle company that is exploring into autonomous vehicles market. By making use of this technology, it is thought that TBO can cut the cost of each journey by 50%

Which TWO of the following features of the 4th industrial revolution will ensure that TBO has the best chance of success?
  • Focusing on the internet of things
  • Focusing on the development of traditional core technologies
  • Increased connectivity
  • Increased budgets for development
  • Decreased technology costs
80
MLG is a retail company that manages a chain of retail shops.

With the long term aim to reduce costs, MLG are planning to achieve this with the use of artificial intelligence to maintain accurancy of operations and integrity of reporting.

Which of the following would be the expected outcome in utilising artificial intelligence over time?
  • Reduced lead times
  • Increased collaboration
  • Improved efficiency
  • Increased security
81
Which of the following changes in the structure and working of the finance function are as a result of utilising cloud computing?
  • Flexible working
  • Variety of knowledge
  • Insight and understanding
  • Traceability
82
Stakeholders can be classified as 'internal', 'connected' or 'external'

Identify which THREE of the following are 'connected' stakeholders
  • Suppliers
  • Local authoritiesovernment
  • Customers
  • Shareholders
  • Employees
83
Which TWO of the following activities of finance SHAPE HOW value is created and preserved?

  • Resource allocation
  • Forecasting
  • Performance Management
  • Planning
  • Control
  • Financial reporting
84
Reema is a CIMA student. Today, she is sitting her E1 exam. As she knows that her memory is bad, Reema has made a few notes which she intends to take into the exam.

Identify which of the CIMA Ethical Principals is threatened by the above scenario:
  • Objectivity
  • Professional Behaviour
  • Confidentiality
  • Integrity
85
fill in gaps 1, 2 and 3
1) Insight
2) Advise
3) Impact
86
A quality restaurant which goes by the strap line "the best always" has correctly decided to measure wastage of its expensive ingredients. The KPI it has chosen for the double cream it uses is the wastage rate measured by the grams it discards over the total grams bought measured weekly.

Which of the following actions would legitimately lead to an improvement in this metric?
  • Change to an even better quality doubel cream
  • remove all cream from the menu
  • use a long life cream instead
  • introduce strict refrigeration and storage policies regarding the cream
87
In relation to quality, which of the following statements are true?

1) Setting lower selling prices to excuse poor production quality discovered by quality controls is an external failure cost
2) The cost of lost goodwill after a customer experienced poor quality is a tangible cost to the business
  • neither are true
  • 2 only
  • both are true
  • 1 only
88
Which one of the following is th emost up to date and accepted definition of a quality product?
  • It consistently meets the needs of its users.
  • It has the most features and the most stylish design.
  • It has been produced to the set standard.
  • Iit is the best value for money on the market.
89
A training college provides education services for its clients and as such suffers the normal problems listed below. It decided to release digital videos of its tax instruction relevant for a particular finance act. The video files can be downloaded and watched as often as the buyer wishes, however it cannot be shared with others.

Which one of the following service features is not made better by this step?
  • Flexibility
  • Variability
  • Intangibility
  • Perishability
90
According to Porters value chain which TWO of the following activites would be a secondary or supporting activity?
  • A promotional campaign
  • Recruitment of a delivery driver
  • The storing of raw materials ready for prodiction
  • The installment of a new customer relationship management system
  • The outsourced customer call centre
91
Which feature of data manipulation language is the most relevant for management within the finance function?
  • Search
  • Query
  • Combine
  • Sum
92
What are the three levels of the data modelling process?
  • Conceptual, logical and physical
  • Volume, velocity and variety
  • Engineering, extraction and mining
  • Extraction, transformation and loading
93
Companies can use big data analytics to map the behaviour of customers, using sophisticated predictive modelling techniques, in order to schedule production processes for efficient utilisation and order fulfilment.

Which area of operations is being described above?
  • Cost management
  • Preventative maintenance
  • Supply chain management
  • Forecasting
94
P works for a company that manufactures and distributes popular beauty products.

The level of inventory in each premises requires very careful management as clients would be very unhappy with a stock-out, and some products have a short shelf life so over ordering can be equally as problematic

At what level of decision making is P working?
  • Management
  • Operational
  • Strategic
  • Tactical
95
Which of the following processes in the management accounting part of the finance function would be ideal for automation
  • Preparation of corporation tax computations
  • Monitoring for potential fraudulent transactions
  • Calculation of rates for foreign exchange
  • preparation of variance reports
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