Question 1

As a CIMA qualified management accountant working within a manufacturing company, you are subject to both CIMA's Code of Ethics and your company's Code of Business Conduct.
Which TWO of the following statements are TRUE? (Choose two.)

Options :

A : As a CIMA qualified Management Accountant you must follow CIMA-s Code of Ethics.

B : Where there is a difference between CIMA-s Code of Ethics and the company-s Code of Business Conduct, the company-s Code of Business Conduct takes priority.

C : Both CIMA-s Code of Ethics and the company-s Code of Business Conduct must be based on a set of basic principles.

D : Both CIMA-s Code of Ethics and the company-s Code of Business Conduct include References to Confidentiality. Disclosure on public interest grounds is therefore prohibited.

E : A company-s Code of Business Conduct can be rules based.

Answer: A,D

Question 2

Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

Options :

A : To be responsible for keeping all external stakeholders satisfied.

B : To have regard for the interests of the company-s employees.

C : To focus only on maximizing company profits.

D : To consider the likely consequences of any decision in the long term.

E : To avoid conflicts of interest and of duties.

Answer: A,B,D

Question 3

SSS University wishes to introduce a new Car Park Management Strategy (CPMS). The aim of this strategy is to reduce the use of private cars and to encourage sustainable transport, such as cycling and public transport, by staff and students. SSS has decided to reduce the number of car parking spaces and introduce parking charges.
The Management Accountant has decided to use the Balanced Scorecard to help prepare a performance management system to assess the performance of the new CPMS.
Which of the following is an example of the Innovation and Learning perspective of a Balanced Scorecard for SSS?

Options :

A : Easy access to car parking spaces.

B : Number of days of training for car park attendants.

C : Reduction in complaints from customers.

D : Speed of processing the payment for parking charges.

Answer: A

Question 4

The Management Accountant in company PP has been asked by the Finance Director to produce a paper on'Game Theory' for the next Board meeting.
Which of the following is a valid statement?

Options :

A : Game Theory treats strategy as an interaction between the Organization and its customers.

B : Game Theory suggests that Organizations should not interact with the external environment.

C : Game Theory studies the strategic interactions among rational players.

D : The information culture would be a key consideration to study as part of the Game Theory.

Answer: C

Question 5

MMM operates leisure parks in Country S. a mature economy in Europe. These are parks that are popular with people between the ages of 8 and 25 years who visit them to ride on the high speed roller-coasters and to visit other attractions at the parks. Nearly 60% of visitor expenditure is to buy meals and drinks at the park MMM estimates that 20% of its visitors travel to its parks from outside Country S.
Which THREE of the following environmental changes will have the greatest impact on MMM in the next five years?

Options :

A : The growing strength of the emerging economies in Africa, Asia and South America.

B : The average age of the population in Country S is increasing because of a fall in the birth rate.

C : An increase in the statutory minimum wage in Country S.

D : Introduction of government restrictions on the number of students and tounsts permitted to enter Country S.

E : The opening of a rival leisure park in Country S with more modern rides and attractions.

Answer: A,B,D

Free CIMAPRO19-E03-1-ENG Mock Exam – Practice Online Confidently

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