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  • Exam Name: Managing Finance in a Digital World
  • Last Update: 02-Dec-2023
  • Questions and Answers: 336
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E1 Questions and Answers

Question # 1

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

A.

Data Manipulation

B.

Data Strategy

C.

Data Modelling

D.

Data Analysis

Question # 2

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

A.

Total purchases per year

B.

Total ordering cost per order

C.

Total inventory cost per year

D.

The reorder quantity

Question # 3

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:

A.

The purpose and title of the job

B.

Attainments

C.

The job environment

D.

Special attributes

E.

Background and circumstances

F.

Salary range

Question # 4

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.

An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.

B.

A building that has been designed specifically for manufacturing light bulb filaments.

C.

High tech and expensive filling machines in the factory.

D.

A sales director who is well known and popular throughout the industry.

Question # 5

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?

A.

Professional competence

B.

Objectivity

C.

Integrity

D.

Confidentiality

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