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CIMA Managing Finance in a Digital World Sample Questions:

1. Which of the following statements best describes data extraction?

A) The process of harvesting data from source databases and locations
B) Examining the data to understand its content formats and structure.
C) Storing data in a systematic and logical way ready for further interrogation.
D) Data being processed into the destination database ready for use.

2. The secondary objectives of a not-for-profit organisation are economy, efficiency and effectiveness.
Which of the following gives the correct description of each of these?

A) Economy: Controlling costs.
Efficiency: A measure of achievement by reference to objectives.
Effectiveness: Achieving objectives at minimum cost.
B) Economy: Achieving objectives at minimum cost.
Efficiency: Controlling costs.
Effectiveness A measure of achievement by reference to objectives
C) Economy: Controlling costs.
Efficiency: Achieving objectives at minimum cost
Effectiveness A measure of achievement by reference to objectives
D) Economy Achieving objectives at minimum cost
Efficiency: A measure of achievement by reference to objectives
Effectiveness Controlling costs.

3. Which of the following is an example of sustainability impacting operations management?

A) A company sells goods to developing nations
B) A company only buys printer paper that has been recycled
C) A company keeps profits within the business for future investment
D) A company has a whistle-blowing policy

4. Working in the finance function of a manufacturer of baked goods, T has been asked to support the monitoring of key performance indicators (KPIs) within the operations function of the company.
Which of the following would be a suitable KPI to help measure quality costs?

A) Labour utilisation rate in the bakery.
B) Time taken to deliver a customer order
C) Freight costs per bakery unit sold
D) Amount of inventory damaged in warehouse storage

5. XYT company is planning to update its IT and have asked the finance function to assist by establishing suitable key performance indicators (KP1). Which of the following is an example of a suitable KPI for strategic activities'?

A) Ticket response rates for IT issues sent to IT support
B) IT utilisation
C) IT spend per employee
D) IT function as an 'enabling' factor in the market place

Solutions: