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CIMA E1 Exam Syllabus Topics:

CIMA Managing Finance in a Digital World Sample Questions:

1. Which one of the following structures primarily suits a nationwide business with three product lines; for example, soup, condiments and baby food?

A) Matrix
B) Functional
C) Divisional
D) Geographical

2. Which TWO of the following tasks is associated with a Finance Department's Management Accounting section?

A) Dealing with tax administration
B) Arranging for the financing of plans made
C) Providing management with decision making information
D) Corporate governance compliance within the organisation
E) Preparing investment appraisals
F) Verifying systems of control

3. AB Company is currently the sole supplier of raw material to XY Company and has recently increased its prices. This has been highlighted by a raw material price variance in the management reports of XY Company, and in order to correct this the Finance Director has recommended that an alternative cheaper supplier be found as soon as possible. The Purchasing Department has indicated that only AB is able to supply all of the company's requirements and has been doing so reliably to a high quality on a just-in-time (JIT) basis for many years. Finding an alternative will involve purchasing from several unknown suppliers. Which of the following are possible consequences of this decision?
Select ALL that apply.

A) Manufacturing costs will decrease
B) Administration costs will decrease
C) Speed of production will increase
D) Product profitability will increase
E) Quality will decrease
F) Inventory levels will increase

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

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

5. Company V is, and has always been, very focused on the importance of stakeholders to the business.
As a well known and very popular private fee-paying school, Company V has to take on board advice, feedback, complaints and queries from a great many different stakeholders, all of which have to be prioritised according to their impact and power over the operations of the company.
Listed below are some of the stakeholders that Company V deal with on a daily basis. Categorise each of these stakeholders according to whether they are internal, connected or external stakeholders.

Solutions: