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QUESTION NO: 1
QWE is a private company belonging to a famous former sports professional. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit center and the manager of each center is paid bonuses based on its financial performance.
QWE introduced multidimensional performance measures into its management control systems 3 years ago.
These measure competitiveness, financial performance, capacity utilization, innovation and the flexibility of its centers to cope with changing demands.
The managers of QWE's centers have been leaving at a very high rate over the last 2 years. They have claimed that the measures are too open to interpretation and when they think they are improving their center's performance they are told they are doing the wrong things. They also complain that the managers in the centers near big cities find it much easier to reach their targets than the managers of other centers.
According to Fitzgerald and Moon's Building Block model, where does the problem lie?
A. Standards and Rewards
B. Dimensions and Rewards
C. Dimensions and Standards
D. Standards, Dimensions and Rewards
Answer: C

QUESTION NO: 2
DF Company is undertaking a strategic review of its activities and has asked you to explain how a Force Field analysis would assist in the review process.
Which of the following statements would be most appropriate?
A. Identify forces facing DF's activities that may create barriers and resistance to change.
B. Provide a framework for identifying forces for and against the proposed changes within DF.
C. As part of DF's strategic review, identify forces facilitating the need for proposed change.
D. Identify influential senior managers who will drive through changes in DF's strategic direction.
Answer: B

QUESTION NO: 3
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.)
A. 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.
B. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
C. A company's Code of Business Conduct can be rules based.
D. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
E. 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.
Answer: A,C

QUESTION NO: 4
Company TTT produces a range of products, including products T1 and T5.
Product T1: Profitability has declined in recent years, although small profits continue to be made as the market contracts due to changing customer preferences. Overall market share is low and continues to reduce.
However, in addition to external sales T1 is also used as a component of product T5.
Product T5: A market leader within a low growth market, sources components both externally and from TTT's other subsidiaries. T5 benefits from significant economies of scale and TTT has recently considered modernizing its T5 production line but following a cost benefit analysis, decided not to proceed.
Which of the following is an appropriate strategy for TTT to adopt?
A. Divest product T1 and Harvest product T5.
B. Harvest product T1 and Divest product T5.
C. Harvest both product T1 and product T5.
D. Divest both product T1 and product T5.
Answer: B

QUESTION NO: 5
CCC is a software design company. The Board of CCC has always openly encouraged partnerships with a wide range of designers and other organizations in its industry in order to continually develop and enhance the services it offers and to utilize the expertise and knowledge of a range of individuals and organizations. CCC's staff have also been highly creative and innovative in the design services they provide. CCC regularly analyses and keeps up to date with changes in the environment in which it operates. CCC operates a sophisticated website to promote its services and keep in touch with its service users.
Which TWO of the following attributes of a change adept organization, as defined by Kanter, has CCC demonstrated? (Choose two.)
A. Openness to collaborate
B. Continual service development
C. Imagination to innovate
D. Sophisticated systems
E. Environmental awareness
Answer: B,E

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Updated: May 27, 2022

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