CIMA E3 Exam Dumps

CIMA E3 Sample Question Answers

Question # 1

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.

Show Answer

Question # 2

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.

Show Answer

Question # 3

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

Show Answer

Question # 4

DnD4_0250-R6-A.What would be the effect on Shareholder Value Added (SVA) of the  changes described to the value drivers listed below?  

Show Answer

Question # 5

DnD2_0105-R3-D.Select the MOST APPROPRIATE accounting information for each of Boston Consulting Group's (BCG) product categories shown below.

Show Answer

Question # 6

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

Show Answer

Question # 7

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

Show Answer

Question # 8

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.  

Show Answer

Question # 9

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.

Show Answer

Question # 10

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.  

Show Answer

Question # 11

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.

Show Answer

Question # 12

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

Show Answer

Question # 13

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.

Show Answer

Question # 14

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

Show Answer

Question # 15

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.

Show Answer

Question # 16

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)

Show Answer

Question # 17

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

Show Answer

Question # 18

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

Show Answer

Question # 19

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.

Show Answer

Question # 20

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

Show Answer

Question # 21

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

Show Answer

Question # 22

Which of the following is a 'hard' factor according to McKinsey's '7-S' model?

A. Staff
B. Skills
C. Strategy
D. Success

Show Answer

Question # 23

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.

Show Answer

Question # 24

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.

Show Answer

Question # 25

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.

Show Answer

Question # 26

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.

Show Answer

Question # 27

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

Show Answer

Question # 28

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.  

Show Answer