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CIMA E1 Exam Syllabus Topics:

CIMA Managing Finance in a Digital World Sample Questions:

1. S is employed within the accounting function of a small company. Due to the size of the company, there are not enough resources for separate accounting functions so S is responsible for both management and financial accounting tasks. As the company is so small there is no requirement for audit. However it does make use of the services of an external certified accountant for statutory accounting and taxation services.
According to Mintzberg, in which part of the organisation does the external accountant belong?

A) Operating core
B) Technostructure
C) Support staff
D) Strategic apex

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

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

3. Company Q has several layers of management. The Chief Executive Officer (CEO) wishes to remove some of these layers to streamline the organisation and increase efficiencies. The initial plan is for third party contractors to take over support activities. What change in the organisation is the CEO making?

A) Outsourcing
B) Alliance agreement
C) Vertical expansion
D) Horizontal expansion

4. Which of the following best describes a virtual team formed by individuals from different companies to achieve a common aim?

A) Extended supply chain
B) Matrix-structure organisation
C) Inter-organisation
D) Functional

5. La Vie En Rose was the latest perfume from the popular and well known perfumery, Lola. In almost every high quality magazine there was an advert featuring a famous actress and produced by a well known director.
A
few weeks after launching, La Vie En Rose became the top selling perfume.
At the same time, another perfume called Amber launched from a smaller company and only appeared in a few advertisements and the perfume doesn't sell well.
In a blind test, where participants tried both Amber and La Vie En Rose, it was found that La Vie En Rose was the most popular choice.
Which orientation did La Vie En Rose use and why was it more successful than the Amber perfume?

A) They specialised in producing as much as possible of a given product or service.
B) La Vie En Rose focused primarily on the selling and promotion of a product.
C) The perfumery based their marketing around customer needs.
D) The perfumery were chiefly concerned with the quality of La Vie En Rose.

Solutions: