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CIMA E1 Exam
Managing Finance in a Digital World (Page 12 )

Updated On: 7-Feb-2026
Page 12 of 60
PDF with 295 Questions

One of the finance function's main stakeholders provides feedback on customer responses and reviews about the organisation's products and services. Which of the following will provide this feedback?

  1. Sales function
  2. Shareholders
  3. Production function
  4. Human Resources

Answer(s): A



AB Company is planning to produce a new product which will require an extra shift to be worked in its factory, and needs to know if the sales expected will cover the extra cost of manufacture. Which of the following financial processes will be used to calculate this?

  1. Break even analysis
  2. Pricing analysis
  3. Investment appraisal
  4. Key factor analysis

Answer(s): A



The Finance Director has been asked to produce a cost saving plan for the organisation which is to come into effect immediately. His initial suggestion to enable quick savings is to cut the staff development and training budget by 50%. Before he publishes the plan he has asked you to review it and let him know what the effect of this may be in the short term.

Select ALL that apply.

  1. Key staff may leave
  2. Staff skill levels may reduce
  3. There may be a loss of competitive advantage
  4. Profit will increase
  5. Recruitment may be more difficult
  6. Staff motivation may reduce

Answer(s): D,E,F



Continued improvements in Information Technology have encouraged organisations to use IT increasingly to assist in their development. Which of the following is such an improvement in IT?

  1. Increased data storage capacity
  2. Improved operations and manufacturing processes
  3. Improved communications systems
  4. Improved decision making processes

Answer(s): A



A high volume operation is likely to be characterised by which of the following?

  1. High capital intensity
  2. High labour pay rates
  3. High labour flexibility
  4. High cost inputs

Answer(s): A



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