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CIMA Managing Finance in a Digital World Sample Questions:

1. Company E is renewing the IS within the organisation. This new system will enable all employees to access customer information, orders and credit control status to overcome the lack of integration between departments suffered with the previous system. Managers envisage some resistance to the change and want to try to make the transition as smooth as possible. To achieve this, all employees have been invited to share their ideas of what features the new system should include and how they would like the final interface to work. Which of Kotter, Schlesinger and Sache's methods of dealing with resistance is described above?

A) Education
B) Negotiation
C) Facilitation
D) Participation

2. An entity has several subsidiaries including F, which has an urgent staffing issue. The Financial Controller of F is due to start her maternity leave in 3 weeks time and there is currently a recruitment freeze in place to curtail employment costs. Human Resources needs to resolve the issue of covering the Financial Controller's position on a temporary basis. Which TWO of the options below will be suitable in these circumstances?

A) Early retirement
B) Internal promotion
C) Job rotation
D) Job enlargement
E) Secondment

3. There are four types of quality cost - prevention, appraisal, internal and external failure. Which of the following provides the best description for an external failure cost?

A) The cost of training staff
B) The cost of repairing products returned by customers
C) The cost of inspecting finished goods
D) The cost to repair a machine that has broken down

4. The finance function of an organisation supports the organisation's strategies and operations.
Which THREE of the following activities are fundamental to the role of the finance function?

A) Customer management and after-sales support
B) Recruitment and selection of a new financial controller
C) Working capital reporting and control
D) Supplier selection for a new raw material supplier
E) Preparation of statutory reports
F) Preparation of plans, forecasts and budgets

5. Which TWO of the following are activities associated with setting up a new IT system?

A) Database management
B) Service support
C) Testing
D) Design and development

Solutions: