CIMA E3 Practice Exam Questions

CIMA E3 Sample Question Answers

Question # 1

DnD2_0333-R2-C.UU is a company that makes a number of different products. Each product has its own financial, marketing and risk characteristics.The combination of these products affects the attractiveness and profitability of UU. For each product, UU's Board has decided to undertake a product life cycle exercise. This will enable it to examine each of its products and recognise the distinct product life cycle stage for each of the products sales history. Place the stage in the product life cycle next to the relevant statement.

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Question # 2

DnD2_0102-R2-A.LMN is a multinational firm considering undertaking Foreign Direct Investment (that is buying premises and equipment or purchasing businesses) in Country Y. LMN is aware that the policies of the government of Country Y can affect the return on its investment and this can make LMN more or less likely to undertake FDI in Country Y. Place the appropriate effect against each alternative government policy.

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Question # 3

DnD2_0104-R1-A.DDD is an environmental consultancy with offices in 80 countries around the world. DDD advises commercial clients on the ways in which the client can reduce emissions from their operations and their supply chain. It wishes to introduce a Knowledge Management System (KMS) to help its offices to generate and share Organizational learning. Match the impact to the current situation at DDD

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Question # 4

DnD4_0250-R6-A.What would be the effect on Shareholder Value Added (SVA) of the  changes described to the value drivers listed below?  

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Question # 5

DnD2_0105-R3-D.Select the MOST APPROPRIATE accounting information for each of Boston Consulting Group's (BCG) product categories shown below.

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Question # 6

HHH is a teachingOrganization. HHH has begun to employ virtual reality to train the customers on its courses in how to perform complex manual tasks such as repairing machineryWhich activity in Porter's Value Chain has been impacted by HHH's use of virtual reality? 

A. Operations
B. Service
C. Procurement
D. Human resources management

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Question # 7

Which of the following distinguishes a learning curve effect from a learningOrganization? 

A. Learning curve effects depend on repetition of the same behaviour. LearningOrganizations seek to modify behaviour. 
B. Learning curve effects apply to the factory. LearningOrganizations are always service industries. 
C. Learning curve effects increase with time. LearningOrganizations cease to learn after a time. 
D. Learning curve effects always reduce costs. LearningOrganizations always increase costs

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Question # 8

DnD4_0071-R2-A.YYY wishes its managers to implement a changeprogram. YYY proposes to draw upon two change models associated with Kurt Lewin to assist in this process.Place against each of the statements below the appropriate Lewin change model or whether neither model applies.  

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Question # 9

MM is a business which sells entertainment products. MM now wants to move to a positionwhere it uses e-business as a fundamental part of its business strategy.Which of the following benefits would result from MM's use of e-business?Select ALL thatapply

A. Cost reductions because of lower overheads and cheaper procurement.
B. Increased online revenues.
C. Better control information through monitoring website activity.
D. An increased use of tacit knowledge.
E. A reduction in labour turnover and higher morale.
F. Better control of information.

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Question # 10

Which of the following is an example of a value adding activity within the outbound logistics aspect of anOrganization's value chain?

A. Refunds offered to customers if they are dissatisfied with a purchase.
B. Promotions and discounts offered to loyal customers.
C. Delivery of customers' purchases directly to their homes. 
D. Regular training provided to staff in customer care.  

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