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CIMA E1 Exam Syllabus Topics:

CIMA Managing Finance in a Digital World Sample Questions:

1. A duplication of support functions would exist under which of the following organisational structures?

A) Functional
B) Divisional
C) Project based
D) Matrix

2. In a manufacturing company, it is important to maintain the correct levels of inventory, with particular attention to holding and ordering costs. For each of the types of costs listed below, identify whether these are holding costs or ordering costs:

3. The Finance function of XZY company, which is based in the UK. are planning how they can minimise the corporation tax costs Which of the following is correct?

A) Tax avoidance aims to reduce the amount of tax payable and is legal
B) Tax avoidance is the same as tax mitigation
C) Tax avoidance aims to reduce the amount of tax payable and is illegal
D) Tax avoidance operates within the spirit of the law.

4. Which one of the following is NOT part of the role of Human Resource Management?

A) Viewing employees as assets of the organisation.
B) Regarding the line manager's role as transactional with an emphasis on negotiation.
C) Being concerned with operational and strategic people issues.
D) Recognising employees are motivated by consent and involvement.

5. 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) High tech and expensive filling machines in the factory.
B) An R&D manager who has been in the business for 18 years and has specialist knowledge of the formulations.
C) A sales director who is well known and popular throughout the industry.
D) A building that has been designed specifically for manufacturing light bulb filaments.

Solutions: