CIMA CIMAPRO19-P02-1 Quiz 2 Topic 1 Questions 6-10

Question: 1

How does beyond budgeting NOT help to resolve the weaknesses of traditional budgeting? Select ALL that apply.

AManagers are set goals and targets to achieve rather than abiding by strict budgets and variances.

BManagers have a much larger scope of business goals that when achieved, will increase shareholder value.

CManagers are given more freedom and control over their business units under Beyond budgeting.

DManagers focus on keeping costs low in the short term to ensure maximised profits.

EManagers are given incentives to meet or undercut budgets.

FManagers are encouraged to designate responsibility to others to lessen their workload so they may concentrate on important tasks.

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Question: 2

Product WB currently sells for $13 per unit. Annual demand at that price is 20,000 units. If the price increases to $15, the annual demand falls by 500 units.

What is the formula for the demand curve?

AQ = a - bP

BP = f(Q).

CQd = a -- b(P

DP = a -b(Q)

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Question: 3

Which THREE of the following are advantages of changing from a 'top-down' to a 'bottom-up' (participative) style of budgeting?

AThe budget will be based on information from employees who are familiar with the day to day activities.

BMotivation will improve due to a feeling of ownership of the budget.

CThere will be increased commitment to organizational objectives.

DBudget setters will be forced to justify every item on the budget.

EThere will be reduced likelihood of budgetary slack being built into the budgets for 'selfish' reasons.

FIt will be less time-consuming for operational managers.

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Question: 4

For a pharmaceutical manufacturer, in which perspective of the Balanced Scorecard should the performance measure 'number of patents granted during the year' be included?

ACustomer

BInternal business processes

CInnovation and learning

DFinancial

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Question: 5

An organization is competing in the high technology market. It sets a high sales price for its products initially to target the early adopters, and then the price is gradually reduced.

This pricing strategy is known as:

AMarket skimming

BPenetration pricing

CPremium pricing

DLoss leader pricing

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CIMA CIMAPRO19-P02-1 Quiz:2 Topic:1 Questions:6-10