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CIMA E1 Practice Test Questions Answers

Exam Code: E1 (Updated 336 Q&As with Explanation)
Exam Name: Managing Finance in a Digital World
Last Update: 20-Aug-2025
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Questions Include:

  • Single Choice: 234 Q&A's
  • Multiple Choice: 83 Q&A's
  • Hotspot: 1 Q&A's
  • Fill in the Blanks: 2 Q&A's
  • Drag Drop: 16 Q&A's

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    All CIMA Operational Related Certification Exams

    Total Questions: 260
    Updated: 20-Aug-2025
    Total Questions: 248
    Updated: 20-Aug-2025

    E1 Questions and Answers

    Question # 1

    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. 

    A.

    Key staff may leave

    B.

    Staff skill levels may reduce

    C.

    There may be a  loss of competitive advantage

    D.

    Profit will increase

    E.

    Recruitment may be more difficult

    F.

    Staff motivation may reduce

    Question # 2

    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:

    Question # 3

    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?

    A.

    Supply chain management

    B.

    Digital asset management

    C.

    Customer relationship management

    D.

    Market segmentation

    Question # 4

    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.

    A.

    Use the highest quality fabric.

    B.

    Employ skilled shoemakers.

    C.

    Train staff.

    D.

    Have the best quality shoe-making machinery.

    E.

    Use a Kaizen method of production.

    F.

    Adopt the Pa re to rule.

    Question # 5

    When testing an information system before it goes live, using contrived testing will present the system with which type of data and transactions?

    A.

    Unusual and unexpected data and transactions

    B.

    Realistic data and transactions

    C.

    Large volumes of data and transactions

    D.

    Routine mix of data and transactions

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