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CIMA Managing Finance in a Digital World Sample Questions:

1. From the following, which best defines Business Process Re-engineering (BPR)?

A) BPR is based on the idea that 80% of an outcome is dependant on only 20% of the inputs.
B) BPR involves fundamental changes in the way the organisation operates.
C) BPR is the continuous examination and improvement of processes.
D) The main aim of BPR is to save costs

2. General Data Protection Regulation (GDPR) legislation in the EU attempts to ensure that organisations follow certain principles.
Which of the following is contained in these principles?

A) Data must be used lawfully but transparency is not required
B) Data that is adequate and relevant can be used in any way
C) Data must be accurate, and where required, kept up-to-date
D) Data can be kept for longer than necessary so long as it is secure.

3. Mr W wants to replace the family car. The cost of repair is becoming prohibitive so he has agreed with his wife to buy a new vehicle.
Put the tokens below in the correct order to demonstrate the stages in the buying process, according to Lancaster and Withey.

4. One of the finance function's main stakeholders provides feedback on customer responses and reviews about the organisation's products and services. Which of the following will provide this feedback?

A) Human Resources
B) Production function
C) Shareholders
D) Sales function

5. 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

Solutions: