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CIMA E3 - Strategic Management Question Tutorial Sample Questions:

1. Which TWO of the following are advantages to an organization of using non-financial performance measures, rather than financial performance measures? (Choose two.)

A) They are not distorted by inflation.
B) They present a wider view of organizational performance than financial performance measures.
C) They are easier to measure than financial performance measures.
D) They are less expensive to measure than financial performance measures.
E) They are less subjective than financial performance measures.

2. You work as a Management Accountant for GHJ, a company that includes commitments to 'sustainability' in its mission statement.
Which THREE of the following are contributions that you, as Management Accountant, could make towards the achievement of this part of the company's mission statement? (Choose three.)

A) Ensuring the organization adopts the lowest cost technologies and suppliers.
B) Providing financial information with all non-recurring expenditures and incomes removed.
C) Measures of organization's use of non-renewable resources and environmental emissions.
D) Project evaluations that include the externalities as well as the cash costs.
E) Integrated reporting of the triple bottom line of Profits, People and Planet.

3. You have been given responsibility, as a newly qualified management accountant, for delivering an ambitious project to centralize and computerize the accounts function within a medium-sized, geographically dispersed business. The timetable also requires the project to be delivered within a very short timescale with limited resources. You have built a team to deal with these proposed changes.
With regard to effective teams and change, which THREE of the following statements are correct? (Choose three.)

A) Teams that cross departmental boundaries can destroy shared values.
B) Teams enhance learning and address change directly through creating recommendations and new ideas.
C) Teams play minor roles in institutional change.
D) Teams that cross departmental boundaries can develop new performance criteria.
E) Individuals must become more than they were when working alone and must develop new commitments and behaviors.
F) Teams should continue after their purpose has been served.

4. 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.)

A) To be responsible for keeping all external stakeholders satisfied.
B) To consider the likely consequences of any decision in the long term.
C) To avoid conflicts of interest and of duties.
D) To focus only on maximizing company profits.
E) To have regard for the interests of the company's employees.

5. M is a car manufacturer in Country C.
Every day, at 09.00, members of M's staff practice meditation and Tai Chi for 30 minutes, before their normal workday commences.
M's staff are paid during this time and M considers the practice to be a benefit both to staff and the company.
Staff operate with high levels of efficiency and absenteeism levels are low.
The auditors of M have recommended that M stop these sessions, stating that they consider them to be a waste of time and a drain on resources.
Which of the following aspects of M's culture would the auditors recommendation impact on?

A) Symbols
B) Stories and myths
C) Routines and rituals
D) The organizational paradigm and values

Solutions: