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CIMA Managing Finance in a Digital World Sample Questions:

1. Information systems outsourcing involves purchasing the services required to perform business functions from outside the organisation.
Which of the following is an advantage to the organisation of outsourcing activities?

A) Long-term contracts
B) Dependancy on supplier
C) Cost control
D) Internal IT experts

2. The secondary objectives of a not-for-profit organisation are economy, efficiency and effectiveness.
Which of the following gives the correct description of each of these?

A) Economy: Controlling costs.
Efficiency: Achieving objectives at minimum cost
Effectiveness A measure of achievement by reference to objectives
B) Economy Achieving objectives at minimum cost
Efficiency: A measure of achievement by reference to objectives
Effectiveness Controlling costs.
C) Economy: Achieving objectives at minimum cost.
Efficiency: Controlling costs.
Effectiveness A measure of achievement by reference to objectives
D) Economy: Controlling costs.
Efficiency: A measure of achievement by reference to objectives.
Effectiveness: Achieving objectives at minimum cost.

3. A boiler repair business uses an expert system in the form of a fault diagnostic system. What benefits does this give to the business?
Select ALL that apply.

A) The system generates customer invoices quickly.
B) The business is less reliant on the senior technician for solving problems.
C) Faults are diagnosed quicker so customer service is improved.
D) Junior technicians are able to identify faults without a detailed knowledge.
E) The business saves money by needing less senior mechanics and repairing boilers quicker.
F) The system can be used for other purposes such as staff rotas.

4. JKL is a rapidly growing supermarket chain and is considering merging with a smaller competitor to continue its expansion plans T works within the finance department and is assisting in the decision making process by preparing summary reports concerning the merger.
What level of decision making is T supporting?

A) Transactional
B) Operational
C) Tactical
D) Strategic

5. In which THREE of the following situations is Cloud a sensible IT strategy?

A) High impact if data is lost
B) High in-house IT skills
C) Need to reduce up front costs
D) Bespoke software
E) Frequent software changes
F) Unreliable internet access

Solutions: