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Sample Question 4
DnD2_0333-R2-C.UU is a company that makes a number of different products. Each
product has its own financial, marketing and risk characteristics.The combination of these
products affects the attractiveness and profitability of UU.
For each product, UU's Board has decided to undertake a product life cycle exercise. This
will enable it to examine each of its products and recognise the distinct product life cycle
stage for each of the products sales history. Place the stage in the product life cycle next to
the relevant statement.
DnD2_0102-R2-A.LMN is a multinational firm considering undertaking Foreign Direct
Investment (that is buying premises and equipment or purchasing businesses) in Country
Y. LMN is aware that the policies of the government of Country Y can affect the return on
its investment and this can make LMN more or less likely to undertake FDI in Country Y.
Place the appropriate effect against each alternative government policy.
DnD2_0104-R1-A.DDD is an environmental consultancy with offices in 80 countries around
the world. DDD advises commercial clients on the ways in which the client can reduce emissions from their operations and their supply chain. It wishes to introduce a Knowledge
Management System (KMS) to help its offices to generate and share Organizational
learning. Match the impact to the current situation at DDD
HHH is a teachingOrganization. HHH has begun to employ virtual reality to train the
customers on its courses in how to perform complex manual tasks such as repairing
machineryWhich activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?
A. Operations B. Service C. Procurement D. Human resources management
Answer: A
Sample Question 10
Which of the following distinguishes a learning curve effect from a learningOrganization?
A. Learning curve effects depend on repetition of the same behaviour.
LearningOrganizations seek to modify behaviour. B. Learning curve effects apply to the factory. LearningOrganizations are always service
industries. C. Learning curve effects increase with time. LearningOrganizations cease to learn after a
time. D. Learning curve effects always reduce costs. LearningOrganizations always increase
costs
Answer: A
Sample Question 11
DnD4_0071-R2-A.YYY wishes its managers to implement a changeprogram. YYY
proposes to draw upon two change models associated with Kurt Lewin to assist in this
process.Place against each of the statements below the appropriate Lewin change model or whether neither model applies.
MM is a business which sells entertainment products. MM now wants to move to a positionwhere it uses e-business as a fundamental part of its business strategy.Which of the following benefits would result from MM's use of e-business?Select ALL thatapply
A. Cost reductions because of lower overheads and cheaper procurement. B. Increased online revenues. C. Better control information through monitoring website activity. D. An increased use of tacit knowledge. E. A reduction in labour turnover and higher morale. F. Better control of information.
Answer: A,B,C
Sample Question 13
Which of the following is an example of a value adding activity within the outbound
logistics aspect of anOrganization's value chain?
A. Refunds offered to customers if they are dissatisfied with a purchase. B. Promotions and discounts offered to loyal customers. C. Delivery of customers' purchases directly to their homes. D. Regular training provided to staff in customer care.
Answer: C
Sample Question 14
CIMA has described the two roles of enterprise governance as 'preventing failure' and'ensuring success'. CIMA sees 'preventing failure' as being related to having proper riskmanagement and corporate governance procedures in place. CIMA sees 'ensuringsuccess' as being concerned with the practise of strategic management.Which THREE of the following responsibilities of senior management are essential to'ensuring success' for theOrganization?
A. Providing leadership and direction to theOrganization. B. Maintaining awareness and responsiveness to abrupt change in theOrganization's environment.
C. Demonstrating competence in the execution of new initiatives. D. Avoiding the dominance of the executive team by particular personalities. E. Ensuring conformance with the codes of corporate governance.
Answer: A,B,C
Sample Question 15
BCD is an independent training provider in Country P. It provides training to a wide range
of corporate customers in business related subjects. All of its tutors must possess a
nationally accredited training qualification before they are allowed to teach. Also, all of its
courses follow nationally accredited programs and are externally monitored. This is
considered to be a critical aspect of its business reputation.BCD has one major competitor, JKL, within Country P. JKL offers similar courses toBCD but its tutors do not have to have an accredited training qualification. In addition itscourses do not follow the national accreditedprograms and the content and style of coursesvaries significantly between JKL centres.There are a number of universities which offer nationally accredited courses within CountryP. BCD does not consider these as competitors, as they typically attract students wishingto undertake degree courses. The average university pass rate for nationallyaccredited programs is currently higher than BCD'sWhich of the following types of benchmarking would be most useful for BCD?
A. Process B. Internal C. Competitor D. Strategic
Answer: A
Sample Question 16
Which of the following statements would encourage an Organization to use Scenario
Planning?Select ALL that apply.
A. Uncertainty in the industry is high, relative to management's ability to predict or adjust to change. B. Competitor's are increasingly using Scenario Planning as part of their strategy formulation process. C. TheOrganizationhas not previously experienced any major surprises or expensive strategic mistakes. D. TheOrganizationhas achieved all of its objectives and operates within a stable external environment. E. TheOrganizationoften experiences 'group-think', leading to a narrow view of the future.
Answer: A,B,E
Sample Question 17
T is a management consultant. He was recently contracted by company XYZ to act as an
external Change Agent in aprogramof change being undertaken. T's first task was to assist
XYZ in clearly defining the outcomes of the changeprogramand ensure that these were
achievable. T also set up a number of change teams and led several workshops and team
building exercises. Many of XYZ's staff were resistant to the changeprogram.
Therefore, T had to ensure that he created an appropriate vision for the change and was
able to resolve any conflict which occurred during the changeprogram.
Which THREE of the following are the key skills of a Change Agent demonstrated by T?
A. Goal Setting B. Negotiation skills C. Independence D. Role Setting E. Managing up
Answer: A,B,D
Sample Question 18
You are a Management Accountant working for anOrganizationthat includes commitments
to 'sustainability' in its mission statementWhich THREE of the following are contributions that a Management Accountant can make
to the achievement of this part of the Organization's mission statement?
A. Integrated reporting of the triple bottom line of Profits, People and Planet. B. Measures ofOrganization's use of non-renewable resources and environmental emissions. C. Project evaluations that include the externalities as well as the cash costs. D. Ensuring theOrganizationadopts the lowest cost technologies and suppliers. E. Providing financial information with all non-recurring expenditures and incomes removed.
Answer: A,B,C
Sample Question 19
YYY is a profit-seeking provider of television channels. It broadcasts to some 55 countriesusing satellite and cable technologies. It also commissions and produces about 30% oftheprograms it broadcasts, to give it a unique competitive advantage against otherbroadcasters.Web 2.0 provides new opportunities for YYY and it has developed a strong social mediacomponent to its programming schedules to increase audience engagement.Keeping YYY's divisions working together is crucial to its success as a business.Which of the following methods of divisional Performance Measurement would yourecommend to YYY?
A. Kaplan and Norton's Balanced Scorecard B. Lynch and Cross's Performance Pyramid C. Stern Stewart's Economic Value Added (EVA) D. Rappaport's Shareholder Value Analysis (SVA)
Answer: A
Sample Question 20
HHH is a teaching Organization. HHH has begun to employ virtual reality to train the customerson its courses in how to perform complex manual tasks such as repairing machinery.Which activity in Porter's Value Chain has been impacted by HHH's use of virtual reality?
A. Operations B. Service C. Procurement D. Human resources management
Answer: A
Sample Question 21
BBB is a publisher. As a consequence of BBB using the Internet to outsource its typesetting andstudio activities it has been able to move its few remaining staff into much smaller and lessexpensive office accommodation.Which activity in Porter's Value Chain has benefitted from BBB's use of information systems?
A. Infrastructure B. HR management C. Sales and marketing D. Outbound logistics
Answer: A
Sample Question 22
Which of the following distinguishes a learning curve effect from a learning Organization?
A. Learning curve effects depend on repetition of the same behaviour. Learning Organizationsseek to modify behaviour. B. Learning curve effects apply to the factory. Learning Organizations are always serviceindustries. C. Learning curve effects increase with time. Learning Organizations cease to learn after a time. D. Learning curve effects always reduce costs. Learning Organizations always increase costs.
Answer: A
Sample Question 23
PPP uses the Boston Consulting Group Matrix (BCG Matrix) to prioritise products forinvestment and divestment. PPP invests or divests according to the quadrant of the BCG Matrixthat the product occupies.Which TWO of the following quadrants might receive only as much investment as required tomaintain PPP's relative market share?
A. Stars B. Question marks C. Dogs D. Cash cows
Answer: A,D
Sample Question 24
JJJ presently makes motorcycles for use by the armed forces in its home country. Defencespending cuts have forced JJJ to seek a new business direction. JJJ has decided to make trucksfor sale to private businesses in its home country.Use the Ansoff product/market matrix to identify the new strategic direction of JJJ.
A. Related diversification B. Product development C. Market development D. Market penetration
Answer: A
Sample Question 25
Which of the following is a 'hard' factor according to McKinsey's '7-S' model?
A. Staff B. Skills C. Strategy D. Success
Answer: C
Sample Question 26
McKinsey's '7-S' model distinguishes between 'hard' and 'soft' factors.Which TWO of the following statements are correct?
A. Hard factors tend to be intangible and hard to identify. B. Soft factors tend to be intangible and hard to identify. C. Hard factors tend to be formal and measurable. D. Soft factors tend to be formal and measurable. E. Soft factors focus on the future and hard factors focus on the present.
Answer: B,C
Sample Question 27
The future can be viewed as consisting of a large number of alternatives. Forecasting techniqueshave been designed to assist decision-making and planning.Which TWO of the following statements are correct regarding the use of trend analysis as aforecasting tool?
A. Suitable for mature and stable products / services / companies. B. Suitable for young and dynamic products / services / companies. C. Useful where the external environment is always stable. D. Useful where the external environment is always changing. E. Useful where comparatives are not available.
Answer: A,C
Sample Question 28
Which TWO of the following statements are NOT characteristics of a robust 'coaching climate'?
A. Personal growth, team development and Organizational learning are integrated. B. Coaching is seen primarily as an opportunity to be proactive rather than reactive. C. People are able to engage in destructive confrontation. D. Time for reflection takes place only out of office hours. E. People are recognised and rewarded for sharing knowledge.
Answer: C,D
Sample Question 29
You are the youngest member of the senior management team and have recently been invited tobecome a member of the company's Board.You have been sent an outline agenda ahead of your Board induction meeting with the CompanySecretary. The first item on the agenda is the role of the Board.Which of the following statements is NOT the role of the Board?
A. Establish the company's vision, mission and values. B. Relinquish responsibility for implementation of strategy to management. C. Confirm the adequacy and alignment to strategy of internal control and risk managementsystems. D. Establish strategy with regard to the risk appetite of the Organization.
Answer: B
Sample Question 30
Corporate political activity can be seen as a proactive attempt by a company to influencegovernment decision-making. In particular, lobbying represents a direct but often private attemptby businesses to influence a government's decision-making.Which of the following is NOT a legitimate and private form of lobbying?
A. Monitoring B. Advocacy C. Application of pressure D. Undisclosed party financing
Answer: D
Sample Question 31
Communication is a critical element of the Organizational change process. Communicating thechange vision is a component of Kotter's eight steps to transforming Organizations.Which of the following statements support Kotter's component 'Communicate the changevision'?Select ALL that apply.
A. Ensure the change message and vision are memorable and repeatable. B. One-way communication is more powerful than two-way communication. C. Storytelling and symbolic actions are unnecessary. D. Unaddressed inconsistencies undermine the credibility of strategic communications. E. Face-to-face communications improve clarity of message.
Answer: A,D,E
Sample Question 32
QQQ is Country M's largest supermarket with 40% of the market share. In addition it has openedseveral stores around the world in the last 10 years. One of the reasons for QQQ's success isits loyalty card. The loyalty card is used to gather information about the spending patterns of itscustomers. Around two billion pieces of information each week are captured and stored in anenormous data warehouse that can be accessed by QQQ and other selected large retail partners.The information can be used to assess the success of new product launches as well as whichdemographics of customer are making the purchases. The system also allows QQQ to tailor itsspecial offers to particular segments of the market and to predict the buying behaviour of itscustomers, which assists QQQ in procurement planning.Which of the following best describes the activities outlined above for QQQ?
A. Customer relationship management B. E-business C. Market segmentation D. Data mining
Answer: D
Sample Question 33
Which TWO of the following would be measures included within the 'Department and work
centres' level of the Performance Pyramid?
A. Market share percentage B. Percentage of on-time deliveries C. Number of product returns per period D. Customer satisfaction levels E. Production output per period
Answer: B,C
Sample Question 34
You have applied for a job with a large accountancy practice and have been requested to attendfor an interview. You have also been informed that you will be required to give a ten minutepresentation on Corporate Political Activity (CPA).Which are valid statements with respect to Corporate Political Activity?Select ALL that apply.
A. The CIMA Code of Ethics does not consider it appropriate for a company to offer bribes topoliticians to secure publicly-funded business. B. CPA can be considered to be part of a company's strategy to generate and sustain profits. C. When established laws and regulations affect a firm's competitive environment, the companywill not be able to use CPA to try to influence political decision-making. D. It is acceptable for a company to make an election contribution for a particular candidate andthen to try to influence subsequent parliamentary voting. E. Companies can establish Coalitions to respond to specific political issues, but these are alwaysformed on a temporary basis.
Answer: A,B,D
Sample Question 35
'Big data' refers to datasets whose size is beyond the ability of typical database software tools tocapture, store, manage and analyse.Which of the following statements is NOT a valid statement regarding 'big data'?
A. As technology advances over time, the size of datasets that qualify as 'big data' will also
increase. B. The definition of 'big data' can vary by sector, depending on the software tools and datasetsizes common to a particular industry. C. Sufficient analytical and managerial talent is available to exploit the opportunities associatedwith 'big data'. D. 'Big data' will require the right infrastructure, incentives and safeguards to address publicconcerns.
Answer: C
Sample Question 36
Data mining is an important part of an Organization's knowledge discovery process.Effective data mining provides insight and can help unlock previously hidden opportunities.Which of the following are disadvantages of Data Mining?Select ALL that apply.
A. Privacy issues B. Security issues C. Ethical issues D. Financial crime issues E. Manufacturing issues
Answer: A,B,C
Sample Question 37
Kanter identified seven 'power skills' that change agents need to overcome apathy or resistance
to change. Which of the following are power skills?Select ALL that apply.
A. Ability to work independently. B. Ability to collaborate effectively. C. Ability to develop relationships based on trust. D. Ability to keep within a budget. E. Ability to work ethically and sustainably. F. Ability to keep projects to a strict time-line.
Answer: A,B,C
Sample Question 38
CIMA has conducted research into the implications of sustainability for business. CIMA's report
contained a number of key conclusions. Which of the following statements was NOT a
conclusion in CIMA's report?
A. Strong ethical principles can add great value to a brand. B. Reporting on sustainability needs to provide hard evidence of the positive impact on society. C. Management Accountants have a responsibility to promote an ethics-based culture. D. The ethical tone within a business must come from the bottom.
Answer: D
Sample Question 39
Lynch developed the performance pyramid to define the links between objectives and
performance measures. Which THREE of the following statements apply to the performance
pyramid?
A. The performance pyramid is designed to ensure that all activities support the Organization'svision. B. The left-hand side of the pyramid contains measures which have an external focus. C. The lowest level of the pyramid contains the day-to-day operational measures. D. The business operating systems level includes the market-related Critical Success Factors. E. The business unit level includes measures which relate to internal systems needed to meetcustomers' needs. F. The right-hand side of the pyramid contains measures which are predominantly non-financial.
Answer: A,B,C
Sample Question 40
DD is a medium size company and has decided to appoint a data mining company to collateinformation from a wide variety of sources and analyse the data into more meaningfulinformation.The Board of DD believes that by using a data mining company to undertake this work, it willadd value to its business and help it to remain competitive.Which of the following statements does NOT apply to data mining?
A. Data mining involves looking for new patterns and relationships in the underlying data. B. Data mining can guide decision-making and predict future behaviour. C. Data mining uses statistical analysis tools and other intelligent techniques. D. The goal of data mining is the extraction of data.
Answer: D
Sample Question 41
McKinsey saw culture as seven interconnected elements and described these in the '7S' model.
Which of the following is NOT a 'hard' factor within the '7S' model?
A. The way the Organization is structured and who reports to who. B. The way in which the Organization plans to gain a competitive advantage. C. The daily activities and procedures followed by staff. D. The core values of the Organization.
Answer: D
Sample Question 42
Kaplan and Norton developed a model called the Balanced Scorecard to assist in the formation
and achievement of strategic policy. Within this model are four perspectives. Which of the
following statements is NOT applicable to a Balanced Scorecard perspective?
A. To succeed financially, how should we appear to our shareholders? B. To achieve our vision, how should we appear to our customers? C. To achieve our vision, how will we sustain our ability to change and improve? D. To achieve our vision, how should we appear to our stakeholders?
Answer: D
Sample Question 43
BBB has often encountered difficulties when it has introduced strategies which involve
Organizational change. BBB is about to enter a period of much change and has decided to
appoint one or more change agents to help to manage this. Select ALL of the statements that
apply in respect of a change agent.
A. Sensitive to the impact of change on all stakeholders. B. Tolerant of ambiguity and uncertainity. C. Skilled communicator with colleagues and subordinates. D. Skilled at successfully meeting budget targets. E. Worked in three similar change environments. F. Willingness to drive through difficult decisions.
Answer: A,B,C
Sample Question 44
Company LL is a well established, reputable company which specialises in providing insurancecall centre services to the insurance industry. It has recently won a large contract to provide itsservices to a multi-national insurer. LL's staff are highly trained in insurance matters andmany have worked for LL for many years.LL undertakes long-term resource planning activities and has identified that during the wintermonths, when there will be more customers ringing up to make insurance claims, it willpotentially need to employ more staff. The Board has decided that rather than recruit its ownstaff, it will use an employment agency to supply manpower resources as required.The people supplied will be employed on a temporary basis by LL and they will work alongsidethe other call centre staff. However, they will work at a lower pay rate and will only be paidfor the actual hours they work.This change will lead to a shift in the working environment, the routine and the composition ofthe group.Which THREE statements apply in respect of this proposed change?
A. The proposed change will affect the group dynamics, which can be seen as being similar to a'force field' situation. B. In times of change, LL can give sensitivity training to this group of workers who can then beused as a source of support during the change process. C. A Facilitator, as the leader of change, will allow the group to talk about their issues andconcerns with this change in a formal and structured manner. D. As the change process LL is proposing is an internal matter involving a group of its staff,there is no need to undertake a stakeholder analysis. E. LL will need to identify the Adversaries in the group, because if they are influential they maypersuade other group members to resist the change.
Answer: A,B,E
Sample Question 45
The concept of Triple Bottom Line (TBL) reporting expands traditional accountancyreporting systems to consider social and environmental performance, rather than simply financialperformance.Which THREE of the following does the TBL concept suggest should be measured in order toencourage greater business social responsibility?
A. Productivity B. Profit C. People D. Planet E. Privacy
