Free CIMAPRA19-P03-1 Exam Braindumps (page: 5)

Page 5 of 69

You have just been appointed Financial Controller of Y, a marketing consultancy. You are in a meeting with the Chief Executive Officer (CEO) of Y, and have been discussing the need for a major upgrade of all the information systems throughout Y, as they are all very old. Knowing that major change should be managed effectively, you have suggested that Y should have a 'systems steering committee'.
Advise the CEO which of the following should be included in the terms of reference of the steering committee.

  1. Plan for new systems
  2. Develop new systems
  3. Manage the project
  4. Consider the competitive issues raised by the new system
  5. Ensure the new system will meet the company's goals

Answer(s): A,D,E



H is a senior production manager for P Ltd which is about to make a strategic decision on setting up a new production line requiring $3 million of new specialist equipment. H's daughter is friends with and goes to school with the daughter of T, the sales manager in KK Ltd. KK Ltd is a potential supplier of the specialist equipment that P Ltd requires. T owns a holiday home. H's daughter regularly accompanies T's daughter on family vacations at this holiday home, all at T's expense.
H is the only person working for P Ltd who is qualified to select the specialist equipment. KK Ltd will definitely bid for the sale.
What should H do?

  1. H should exclude KK Ltd from the bidding process.
  2. H should declare an interest and withdraw from the assessment process.
  3. H should permit KK Ltd to bid, but should insist that T should not be involved.
  4. H should declare an interest, giving details of his daughter's friendship with T's daughter, but should participate fully in the assessment process.

Answer(s): D



You are the Management Accountant for P, a food manufacturing company with an annual sales revenue of $5 million.
You discover that the Production Manager's records are inconsistent. Raw materials purchased do not agree to the total recorded for transfers to production plus wastage. There is an average shortfall of 2% of purchases.
You investigated and discovered that there are often mistakes made during manufacturing that results in food that is safe to eat, but cannot be sold because of visual flaws. The Production Manager is supposed to scrap all such damaged product and write all such losses off as waste, but you discovered that he has been giving the damaged food to a charity that assists homeless people. No records are made of such gifts in order to conceal the losses due to manufacturing errors.
What should you do?

  1. Do nothing, this is a good cause and the amount is insignificant.
  2. Instigate disciplinary action, this is both theft and poor management.
  3. Instigate a confidential, but documented, review with the Production Manager and tell him to stop.
  4. Instigate a review of the production process to potentially reduce the amount of wastage.
  5. Instigate a process whereby edible but unsellable items can be given to the charity officially.

Answer(s): C,D,E



W plc is a large international supermarket chain. It has many thousands of suppliers and many thousands of others competing for "shelf space" in its supermarkets.
Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?

  1. W plc shall not use its buying power unscrupulously.
  2. W plc shall endeavour to adhere to the terms of its contracts with its suppliers at all times.
  3. W plc shall keep confidential all information received from suppliers and potential suppliers.
  4. W plc shall continuously remind suppliers that it always has several alternative suppliers to choose from.
  5. W plc shall endeavour to take as high a percentage of each supplier's output as possible.
  6. W plc shall insist on an exclusivity agreement with each supplier so that identical products are not available from other outlets.

Answer(s): A,B,C



Page 5 of 69



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