Question 1

You are aManagementAccountant working for a logistics firm that wants to build collaborative relationships with each of its key clients.
Which of the following changes to the management accounting function would you recommend to help the development of collaborative partnerships with a client?
Select ALL that apply

Options :

A : Open book management accounting in which the client can see the profits your firm makes from the relationship.

B : Relocation of some management accounting staff from your Organization into the offices of the key clients.

C : Management accounting staff from your Organization should be made available to the key clients to facilitate joint problem-solving.

D : Recruitment of management accounting staff from the key clients to improve shared understanding.

E : Close monitoring of service level agreements to ensure your Organization provides the minimum service specified.

Answer: B,C

Question 2

Lynch developed the performance pyramid to define the links between objectives and performance measures.Which THREE of the following statementsapply to the performance pyramid?

Options :

A : The performance pyramid is designed to ensure that all activities support the Organization-s vision.

B : The left-hand side of the pyramid contains measures which have an external focus.

C : The lowest level of the pyramid contains the day-to-day operational measures.

D : The business operating systems level includes the market-related Critical Success Factors.

E : The business unit level includes measures which relate to internal systems needed to meet customers' needs.

F : The right-hand side of the pyramid contains measures which are predominantly non-financial.

Answer: A,B,C

Question 3

Directors have a duty to shareholders and other stakeholders and are required to promote the success of the company.
Which THREE of the following are valid roles and responsibilities of directors? (Choose three.)

Options :

A : To be responsible for keeping all external stakeholders satisfied.

B : To have regard for the interests of the company-s employees.

C : To focus only on maximizing company profits.

D : To consider the likely consequences of any decision in the long term.

E : To avoid conflicts of interest and of duties.

Answer: A,B,D

Question 4

BBB is a manufacturer of convenience meals. Which of the following could be Weaknesses for BBB?
SelectALLthat apply

Options :

A : Government health warnings about food ingredients.

B : A shortage of production capacity.

C : Outdated materials requirement planning processes.

D : A reduction in BBB-s Marketing budget

E : A rise in consumer demand for fresh food.

Answer: B,C,D

Question 5

Johnson, Scholes and Whittington developed the SAF framework to explain the factors that should be considered before pursuing a strategic option.
JJJ is a listedcompanythat is considering launching a new product into its market.
Which of the following considerations affectstheAcceptability of this new product launch?

Options :

A : The potential impact of the launch of the new product on the profitability of JJJ.

B : The availability of funds within JJJ for launching the new product.

C : The amount of production capacity JJJ will require to make the new product.

D : Whether the product is consistent with the strengths of JJJ.

Answer: A

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