Free CIMA CIMAPRA19-E03-1-ENG Exam Questions

Question 1

DDD has just issued a profit forecast in connection with a proposed take-over of a business. The take-over is strongly opposed by the target company. DDD's Management Accountant played a large part in helping DDD's Finance Director prepare the profit forecast. However, the Management Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result the Management Accountant thinks the profit forecast is misleading. Select THREE of the actions below which are consistent with CIMA's Code of Ethics.

A : Management Accountant should follow established internal procedures.

B : Management Accountant should obtain advice from his professional body/bodies.

C : Management Accountant should resign from his job.

D : Management Accountantshould maintain a discreet silence.

E : Management Accountant should anonymously inform the media of his concerns.

F : Management Accountantshould publicly accuse the Finance Director of issuing a misleading profit forecast.

Answer: A,B,C

Question 2

ABC is an online bank which has just reported substantial trading losses. It has received advice from a leading business consultancy that it should implement the following two strategies:
1. Take advantage of its reputation and brand image by entering a new industry.
2. Update all its networks to fifth generation (5G) as soon as possible. Which TWO of the following strategies has ABC been advised to implement?

A : tainable strategy

B : undational strategy

C : nsumer strategy

D : rporate strategy

E : hical strategy

F : nctional or operational strategy

Answer: A,D

Question 3

HHH is an international distribution company which operates a number of large distribution warehouses. HHH employs over 10,000 staff who operate the warehouses 24 hours per day and process over 500,000 packages and parcels each day. HHH operates in a highly competitive market and the senior management team recognize the importance of focusing upon its Critical Success Factors (CSF's). However, some senior managers are confused as to the difference between CSF's and Key Performance Indicators (KPI's).
Which of the following are Critical Success Factors for HHH? (Choose all that apply.)

A : rcentage of stock damaged.

B : rket share percentage.

C : tomer satisfaction.

D : ntinual maintenance of warehouse facilities.

E : me taken to load and unload deliveries.

F : ficient staff planning systems.

Answer: B,C

Question 4

VWX manufactures and sells a wide range of products. All these products utilise lenses and digital imaging technologies.VWX is considering how to manage its product portfolio.
Management is concerned about two product ranges in particular: cameras and home projectors.
VWX's cameras are Single Lens Reflex (SLR) cameras featuring interchangeable lenses and provide detailed, high quality images of objects both at very close range and at considerable distances.VWX has the largest share of the camera market but the market sales are falling as people increasingly use their mobile phone handsets to take and share photographs.
VWX has a small share of the home projector market. As a consequence the range is loss making. Thehomeprojectors are used to showphotographs orfilmson large wall-sized formats. There is a growing trend for customers to buyhomeprojectors to connect tomobile phones, tabletsand games consoles to projectthecontentinto alargerimageand in order to share it.
Which THREE of the following product management strategies should VWX adopt?

A : ncel or postpone further investment spending on developing new SLR cameras.

B : marketing expenditure to try to make the camera brand to appeal to professional photographers.

C : vest in promotional campaigns to encourage people to view and share content using a VWX home projector.

D : vest in promotional campaigns intended to convince the general public of the superiority of SLR camera pictures over the images from mobile phone handsets.

E : t promotional expenditure on home projectors to seek to restore the profitability of the range.

Answer: A,B,C

Question 5

Which of the following correctly defines Information Systems(IS)strategy?

A : entifying the information needs of the Organization and aligning development to them.

B : roles and structure of information specialists in the Organization and their relationship with users.

C : cisions on the hardware, software and communications solutions used in the Organization.

D : planning, organising, investment and control of information applications in the Organization.

Answer: A