E1 CIMA Managing Finance in a Digital World Free Practice Exam Questions (2025 Updated)
Prepare effectively for your CIMA E1 Managing Finance in a Digital World certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.
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.
In a manufacturing company, it is important to maintain the correct levels of inventory, with particular attention to holding and ordering costs. For each of the types of costs listed below, identify whether these are holding costs or ordering costs:
JFD is a pet supplies retailing business.
Using customer data to build the target customer profile. JFD plans to create personalised advertising and communications more specific to customers' wants and needs in its market It is hoped that this will create interaction and responses from these customers.
Which of the following is JFD using?
Running shoe manufacturer Bo Joggs have a long established method to ensure their product is right first time. The aim is to reduce the amount of quality checking. Internal processes and procedures are closely
monitored so that the running shoes are of the highest standard before going to market.
What are Bo joggs likely to do to ensure this quality is maintained?
Select ALL that apply.
When testing an information system before it goes live, using contrived testing will present the system with which type of data and transactions?
An effective Corporate Social Responsibility (CSR) strategy can offer which of the following benefits to an organisation.
Select ALL that apply.
Which of the following scenarios is an example of independence within the role of the finance function?
K manages the finance function of a cable manufacturing business In order to cope with an increasingly diverse workload K needs human resources to recruit someone with a digital mindset
Which THREE of the following individual charactenstics should K emphasise to human resources as important in finding the right candidate?
C's company wants to increase socially responsible cost effective practices across it's supply chain
C who is a member of the finance function has been asked to see how this can be achieved and is going to use the 'information to impact framework* to do this.
Which of the following is the correct order in which the required activities will need to be earned out?
Which THREE of the following features are likely to indicate that an organisation is following the marketing concept as a business philosophy?
One of the key corporate governance factors within an organisation is that of responsible planning and management of resources. This is often referred to as stewardship. Whilst this is the responsibility of all directors, financial resources are overseen by the financial director. The finance department, under the direction of the financial director, issues weekly staff performance reports to line managers and department heads, annual statistical information to local government departments and quarterly high level results statements to shareholders. Why is stewardship such an important responsibility of company directors and the finance function?
A high volume operation is likely to be characterised by which of the following?
Company S is a busy vehicle part manufacturer specialising in commercial vans and lorries. The company takes as many as nine deliveries of raw materials every day and these items are entered into the electronic inventory system upon arrival. When an item of inventory is taken from stores this is also updated electronically. Which inventory control system would be best utilised within Company S?
Company X is a manufacturing company. It is implementing a new IT system within the accounts department.
Which of the following is the most appropriate organisational structure for this project?
SSS has adopted some outsourcing practices in order to improve efficiency of its operations. One of the managers has been made aware that the supplier is now also working for a competitor. Which TWO of the following should SSS be concerned with regarding the supplier's and ompetitor's new relationship?
Working in the finance function of a manufacturer of baked goods, T has been asked to support the monitoring of key performance indicators (KPIs) within the operations function of the company.
Which of the following would be a suitable KPI to help measure quality costs?
Which THREE of the following suggest an integrative approach to organisational purchasing according to Reck and Long?
Company Q is a relatively small company but expanding quickly. In this period of rapid growth it feels that now is the time to add a Human Resource presence and support, but does not wish to add a permanent department within the organisational structure. What is the best option for Company Q?
Which of the following would be a useful KPI to highlight increasing recruitment costs?
The finance function of an organisation supports the organisation's strategies and operations.
Which THREE of the following activities are fundamental to the role of the finance function?
