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QUESTION NO: 1
DDD has just issued a profit forecast in connection with a proposed take-over of a business.
The take-over is strongly opposed by the target company. DDD's Management Accountant played a large part in helping DDD's Finance Director prepare the profit forecast. However, the Management
Accountant believes that the profit forecast is overly optimistic and is based on some false assumptions. As a result the Management Accountant thinks the profit forecast is misleading. Select
THREE of the actions below which are consistent with CIMA's Code of Ethics.
A. The Management Accountant should resign from his job.
B. The Management Accountant should obtain advice from his professional body/bodies.
C. The Management Accountant should follow established internal procedures.
D. The Management Accountant should maintain a discreet silence.
E. The Management Accountant should anonymously inform the media of his concerns.
F. The Management Accountant should publicly accuse the Finance Director of issuing a misleading profit forecast.
Answer: A,B,C
QUESTION NO: 2
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. As a CIMA qualified Management Accountant you must follow CIMA's Code of Ethics.
B. Both CIMA's Code of Ethics and the company's Code of Business Conduct must be based on a set of basic principles.
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 include References to
Confidentiality. Disclosure on public interest grounds is therefore prohibited.
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: C,D
QUESTION NO: 3
The following definition has been provided by the Chartered Institute of Personnel and
Development (CIPD):
'An activity which targets high performance and improvement at work and usually focuses on specific skills and goals, although it may also have an impact on an individual's personal attributes (such as social interaction or confidence). The process typically lasts for a relatively short period.' Which of the following activities does the above definition describe?
A. Coaching
B. Work based training
C. Mentoring
D. Leadership Development
Answer: A
QUESTION NO: 4
QR is a conglomerate with two divisions, A and B. Given the information below, select the most appropriate strategy for each division to implement.
Answer:
QUESTION NO: 5
JJJ is a private company belonging to a famous former athlete. It operates gyms and fitness clubs across its home country. Each gym or fitness club is treated as a profit centre and the manager of each centre is paid bonuses based on its financial performance.
Three years ago it introduced multidimensional performance measures into its management control systems.
These measure capacity utilisation, financial performance, competitiveness, innovation, and the flexibility of its centres to cope with changing demands.
The managers of its centres have been leaving at a very high rate over the last two years. They have claimed that the measures are too open to interpretation and when they think they are improving the centre's performance they are told they are doing the wrong thing. They also complain that the managers in the centres near big cities find it much easier to reach their targets than the managers of other centres.
Using Fitzgerald and Moon's Building Block model, where does the problem lie?
A. Standards and Rewards
B. Standards, Dimensions and Rewards
C. Dimensions and Rewards
D. Dimensions and Standards
Answer: A
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Updated: May 28, 2022