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CIMA Managing Finance in a Digital World Sample Questions:

1. Company Y is looking into relocating its production from Country P to neighbouring Country O. After researching the cost of production, this move gives the benefit of reduced material and labour costs which more than off-set the costs of transferring the finished goods back into Country P for sale. The decision to relocate the production is classified as which of the following options?

A) Retained production
B) Near-shoring
C) Off-shoring
D) Outsourced production

2. Running shoe manufacturer Bo Joggs have a long established method to ensure their product is right first time.
The aim is to reduce the amount of quality checking. Internal processes and procedures are closely monitored so that the running shoes are of the highest standard before going to market.
What are Bo joggs likely to do to ensure this quality is maintained?
Select ALL that apply.

A) Use the highest quality fabric.
B) Employ skilled shoemakers.
C) Have the best quality shoe-making machinery.
D) Use a Kaizen method of production.
E) Adopt the Pa re to rule.
F) Train staff.

3. The development of technical maps of rules and data structures would be part of which level of a data modelling process?

A) Physical
B) Logical
C) Visualisation
D) Conceptual

4. System changeover has four approaches, each of which vanes in terms of risk. cost and time.
Select the most suitable approach for when there is a need to minimise costs and time.

A) Pilot operation
B) Direct changeover
C) Parallel running
D) Phased changeover

5. Which of the following is an advantage of outsourcing?

A) Core competence may be strengthened
B) Data confidentiality is stengthened
C) Continuity is guaranteed
D) Cost savings may be made

Solutions: