E1 Practice Exam Questions with Answers Managing Finance in a Digital World Certification

Which of the following best describes the 'passive stage' of purchasing?

Inventory control, which maintains a low level of inventory, is important to ensure which of the following?

It is important to assess the contribution made by the finance function. If a balanced scorecard approach is used, which of the following categories would utilise the measure of staff turnover?

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

Company X is a manufacturing company. It is implementing a new IT system within the accounts department.

Which of the following is the most appropriate organisational structure for this project?

Which THREE of the following features are likely to indicate that an organisation is following the marketing concept as a business philosophy?

A high volume operation is likely to be characterised by which of the following?

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?

Company Q is a relatively small company but expanding quickly. In this period of rapid growth it feels that now is the time to add a Human Resource presence and support, but does not wish to add a permanent department within the organisational structure. What is the best option for Company Q?

An entity has several subsidiaries including F, which has an urgent staffing issue. The Financial Controller of F is due to start her maternity leave in 3 weeks time and there is currently a recruitment freeze in place to curtail employment costs. Human Resources needs to resolve the issue of covering the Financial Controller's position on a temporary basis. Which TWO of the options below will be suitable in these circumstances?

One of the finance function's main stakeholders provides feedback on customer responses and reviews about the organisation's products and services. Which of the following will provide this feedback?

The finance function of Company E are considering using blockchain technology for its ledger systems Which of the following will be an advantage of introducing this technology?

Company E operates a management consultancy business with four international offices. All offices specialise in helping new businesses, with all support operations dealt with by headquarters.Which of the organisational structures below would best describe Company E.

Company V is, and has always been, very focused on the importance of stakeholders to the business.

As a well known and very popular private fee-paying school, Company V has to take on board advice, feedback, complaints and queries from a great many different stakeholders, all of which have to be prioritised according to their impact and power over the operations of the company.

Listed below are some of the stakeholders that Company V deal with on a daily basis. Categorise each of these stakeholders according to whether they are internal, connected or external stakeholders.

It can be said that ethics is a set of moral principles underpinning the concept of right and wrong. Whether an action is actually right or wrong depends on which of the following?

Select ALL that apply.

Place 'Management accountant' or 'Financial accounant' next to each of the following statements according to which applies.

Which of the following functions is associated with the operating core of an organisation?

A cut-flower production business has peaks of demand around special days in the year that celebrate religious festivals. Which of the Four Vs of operations is being described in the above scenario?

Which of the following are types of connected stakeholders? Select ALL that apply.

Which THREE of the following refer to information sourced externally?

A PESTEL analysis (political, economic, social, technological, ecological and legal) is used by marketing to monitor its macro environment. Select THREE examples of economic factors

M is employed by an organisation that operates a chain of high street coffee shops. She has made a decision to purchase a failing cake shop in order to take it over and expand the presence of the organisation in the local area. According to Mintzberg, which part of the organisation does M belong to?

When involved in business decision making it is important to observe the concept of objectivity. Which THREE of the following are examples of an effective application of this concept?

When implementing a new IT system and according to the theory of Kotter, Schlesinger and Sache, which of the following is a benefit of using participation as a way of overcoming resistance to change?

Mr W wants to replace the family car. The cost of repair is becoming prohibitive so he has agreed with his wife to buy a new vehicle.

Put the tokens below in the correct order to demonstrate the stages in the buying process, according to Lancaster and Withey.

Which of the following is a feature associated with personnel management rather than the more modern concept of  human resource management?

Clear career progression is an advantage of which type of organisational structure? 

Which of the following statements regarding Just-In-Time (JIT) are true?

1:The main aim of JIT it to ensure a business has a sufficient amount of leftover stock, just in case it's needed further down the line.

2:Although the benefits of JIT are many, its use can end up harming supplier relations.

3:JIT generally results in lower costs for the business using it.

F manages a portfolio of clients, as do his colleagues. All income that is earned by them is pooled to cover costs and overheads and any remaining profits are split according to an agreed formula. F and his colleagues have joint and several liability in relation to the work they carry out on the organisation's behalf. Which of the organisation types listed below best describes the organisation that F works for?

T is the head of the marketing department in company Z. There have been several new recruits into the department recently and T is introducing them to the marketing mix. T explains that the original marketing mix had only 4 Ps. However, this was focused primarily around the manufacturing industry. The mix was later extended to include an extra 3 Ps for use in the service industry. Which THREE of the following are the extra 3 Ps?

The following statements are from which section of the UK Combined Code?

1:The board should disclose a balanced and understandable assessment of the company's position and prospects in the financial reports.

2:The board should maintain an appropriate relationship with the company's external auditor.

You work for a pharmaceutical company and during any one year cames out a range of different activities and projects. Which of the following sets of activities can be said to be connecting influence to impact?

DPC is a home appliance online retailer keen to utilise data and connectivity in its operations

The company has recently introduced a live tracking system of all deliveries to its customers via its website

Which of the following will be the man benefit to DPC?

Company T has eight main products that it markets and sells. One particular product requires a low amount of ongoing investment, has low growth prospects but currently maintains a high market share.

 According to the Boston Consulting Group Matrix, which category is this product in?

According to Ansoff, which of the following marketing strategies should be adopted when introducing an existing product to a new market?

Which of the following are benefits of appraisals? Select ALL that apply.

AB Company is currently the sole supplier of raw material to XY Company and has recently increased its prices. This has been highlighted by a raw material price variance in the management reports of XY Company, and in order to correct this the Finance Director has recommended that an alternative cheaper supplier be found as soon as possible. The Purchasing Department has indicated that only AB is able to supply all of the company's requirements and has been doing so reliably to a high quality on a just-in-time (JIT) basis for many years. Finding an alternative will involve purchasing from several unknown suppliers. Which of the following are possible consequences of this decision?

Select ALL that apply.

LFN is a tuition provider

The finance function has recently migrated all accounting systems onto cloud software which is expected to considerably streamline the existing systems.

The Managing Director is keen to promote the benefits of the new software in terms of increased accuracy of reporting and availability of real time management information.

However, the Finance Director has concerns and is feeling pressured to keep quiet about the ability of the technology to achieve all that is expected

Which of the following ethical principles is highlighted within LFN?

Bright Idea Co. specialises in manufacturing light bulb filaments. It is considering outsourcing some of it activities in order to reduce costs and improve customer service.

Which of the following is an example of asset specificity that is likely to be an important consideration in their decision?

A management accountant vacancy has arisen in the Finance Department of HJ Company. The Finance Manager is preparing the necessary paperwork for the recruitment process and is currently working on the person specification. He has contacted the company's Human Resource Department to ask for advice on which THREE of the following he should include in the person specification:

The coherent approach for organising, governing, analysing and deploying an organisations' information assets' Which of the following does the above statement describe?

Which of the following is NOT an element of the EOQ (Economic Order Quantity) equation?

AAA Hotel provides accommodation near a major airport. When considering capacity management the hotel needs to clarify the component measurements identified below.

Match each of the three measurements below with the correct capacity element.

Which TWO of the following are examples of a knowledge work system?

From the following, which best defines Business Process Re-engineering (BPR)?

In which THREE of the following situations is Cloud a sensible IT strategy?

Which of the following is an advantage of outsourcing?

Y Company is an online retailer of sportswear. It has software that monitors customers' search history.

On a weekly basis, the software automatically generates emails that are sent to specific customers offering special offers based on the items that the customer searched for, but didn't purchase, during the previous week.

Which of the following areas of marketing is this process assisting?

Barry has heard that the government is planning to tighten environmental regulations. He doesn't like the sound of this, as even though some businesses won't be affected that much, he will have to end up paying a lot

more to run his business.

Which of the following options would be most effective in preventing the government from imposing such regulation?

Select ALL that apply.

Which of the following is a primary objective of a not-for-profit organisation?

Which of the following would be within the role of an operational line manager?  

Select ALL that apply.

Which THREE of the following are characteristics of undifferentiated marketing?

Company E is renewing the IS within the organisation. This new system will enable all employees to access customer information, orders and credit control status to overcome the lack of integration between departments suffered with the previous system. Managers envisage some resistance to the change and want to try to make the transition as smooth as possible. To achieve this, all employees have been invited to share their ideas of what features the new system should include and how they would like the final interface to work. Which of Kotter, Schlesinger and Sache's methods of dealing with resistance is described above?

Which of the following gives the correct combination of valid stages in the HR cycle?

Which of the following are the primary objectives of a commercial organisation?

 Select ALL that apply.

Fusion is predicted as one of the characteristics to define the Fourth Industrial Revolution.

What is meant by fusion' in the context of the Fourth Industrial Revolution?

Which TWO of the following tasks is associated with a Finance Department's Management Accounting section?

Which of the following is NOT a component of the working capital cycle?

Mita has set up a number of food shops and spends a lot of her time finding suitable staff Her key strength is going to farmers' wholesale markets and selecting her suppliers She also carries out all the accounting functions and maintains the shops by acting as her own caretaker, carrying out repairs and maintenance at the weekends

Which aspect of the work would Mita be LEAST LIKELY to outsource?

Over the past year, JKL Company has found that its two largest competitors have taken some of their market share since opening online stores At the same time JKL has noticed that the capabilities of the new computing equipment that it has recently introduced are much greater than the ones that it had replaced.

JKL has decided to launch its own online store, to compliment its chain of high street stores, m a bid to win back the market share that it has lost Existing staff will be retrained to carry out the online operation.

Which TWO factors, associated with the contextual design of an organisation, are driving this decision?

Data warehousing is an essential element of the extraction transformation and loading process.

Which of the following best describes data warehousing?

Which of the following is the main reason for the growing demand for Big Data by organisations?

Which type of organisation is owned by its customers, strictly speaking is a not-for-profit organisation and is in the private sector?

Which of the following does the Data Protection Act 1998 attempt to protect?

Which TWO of the following relate to corporate social responsibility (CSR) rather than corporate governance?

During the past six months NVT has been undergoing a study, as part of a rationalisation programme to review the profitability of each of its retail stores.

As a result, 30 stores have been identified for closure T with a further 50 stores selected to receive an investment of funds in order to remain profitable going forward. Throughout this process NVTs finance function has worked alongside others in the organisation providing advice and guidance.

Which TWO of the following areas has the finance function most likely been involved with as part of the review?

General Data Protection Regulation (GDPR) was introduced throughout the EU in 2018. The legislation details several principles about data and the requirement for data controllers.

Which of the following best describes the role of data controllers?

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?

Which of the following organisations would best describe a 'professional bureaucracy'?

Which of the following would be a useful KPI to highlight increasing recruitment costs?

C Company is a manufacturer of components for the electronics industry. Although enjoying healthy returns in the past, results for the last two years have shown a decline in profit. G has been brought in as the new Operations Manager. In her previous role, she was responsible for turning around a struggling organisation by using process mapping tools and she feels that this approach could also benefit her new company. Which of the following is NOT a feature of process mapping?

Place the following categories typically found in a 'person specification' next to each job holder's requirements.

Vladimir is the managing director of a IT repair business called Screenhax. The company has been operating for 10 years and has around 60 members of staff.

Donald, one of Vladimir employees, committed the act of 'skimming".

What did Donald do?

Which of the following technologies is described as a decentralised, distributed and public digital ledger that is used to record transactions across many computers?

Which THREE of the following areas would be improved by an organisation using a Customer Relationship Management (CRM) system?

Stephanie has just secured a job as a management accountant for a well-known banking firm. She needs to understand the organisation's financial position.

What should she do first in order to gain this understanding?

Workforce flexibility takes a number of different forms. Which of the following achieves flexibility where employees have the ability to move between tasks as and when required by the organisation?

MN College (limited by guarantee) aims to ensure that each student achieves their qualification and gains employment. Which THREE of the following are suitable measures of performance for MN College?

In a new initiative, Company O has been putting a lot of emphasis on internal awareness of Corporate Social Responsibility and creating value for it's stakeholders. A huge part of this has been about focusing on recycling and making departments accountable.

In order to assist with the achievement of goals in this area, a process has been designed to give some structure to measuring value for each department. Each of the process elements are listed below. Place the steps against each of these to indicate the correct sequence.

A company is charging a high price for a product to individuals who are prepared to pay a premium for a new, innovative product Whilst doing this they are facing high marketing costs

Which stage of the product lifecycle is this product at?

Which of the following are examples of a parallel changeover?

Select ALL that apply.

When testing an information system before it goes live, using contrived testing will present the system with which type of data and transactions?

Which of the following are the tasks associated with the effective management of the treasury function?

 Select ALL that apply.

Material requirements planning (MRP I) and manufacturing resource planning (MRP II) are computerised systems used for planning the requirements for raw materials, work-in-progress and finished items and integrating with other production processes. These systems enable strong relationships to be forged with suppliers as orders can be placed with suppliers in good time to fulfill customer requirements and expectations, as well as other processes related to materials planning. Which of the following specifically can MRP I and MRP II NOT assist with? 

Which of the following are advantages of outsourcing finance? Select ALL that apply.

Which of the following would work as Support Staff in Mintzberg's organisational structure?

Which of the following is NOT a feature of a strategic level information system?

Lancaster and Withey (2003) identifies five steps in consumer decision making. Which THREE are valid?

A business is seeking to introduce TQM. It gets some advice from a business consultant on how to ensure it is successful in its implementation. Which of the following are likely to be included in the advice they receive?

Select ALL that apply.

Clear career promotion and progression ladders are most obvious under which type of organisational structure? 

There are four stages of development of supply chain management, according to Reck and Long's strategic positioning tool. Which stage of this model does the following description identify?

Emphasis is on better co-ordination between departments and suppliers involving timely communication about changes in price and availability of materials.

XBY has recently started making use of big data analytics to assist in producing market predictions It is using software to process large data sets by utilising multiple servers simultaneously.

Which of the following best describes the term for this software?

JKL is a rapidly growing supermarket chain and is considering merging with a smaller competitor to continue its expansion plans

T works within the finance department and is assisting in the decision making process by preparing summary reports concerning the merger.

What level of decision making is T supporting?

JKL is an online marketing agency and is currently developing its systems to improve efficiency in storing and retrieving data

P works in the finance function and is currently assisting the development of a technical map of rules and data structures to enable the data to be stored effectively in JKL's new databases.

At what level of the data modelling process is P working on?

An electrical goods company produces colourful brochures for customers.

Which element of the marketing mix does this represent?