Important CIMAPRO19-P03-1 Exam Questions

Which of the following is an ethical dilemma?

Kate is a management accountant. Her immediate superior plans to apply for a promotion and his strongest competitor is the sales manager.Kate's superior has ordered her to set unattainable salestargets in a sales budget in order to reduce the sales manager's promotion prospects. He told her not to tell anybody.

Kateasked the finance director for advice. He told her that he wanted her immediate superior to get the promotion and so she should set the unattainable budget as instructed.

Kate set the budget as instructed.

WhichTHREEfundamental ethical principles has Kate breached?

SDF has a variable rate loan of $100 million on which it is paying interest of LIBOR + 2%.

SDF entered into a swap with CV bank to convert this to a fixed rate 7% loan. CV bank charges an annual commission of 0.3% for making this arrangement.

Calculate the net payment from SDF to CV bank at the end of the first year if LIBOR was 3% throughout the year.

Give your answer in $ million, to one decimal place.

IOP manufactures aircraft engines. The company is presently engaged in a scenario planning exercise to consider the implications of a possible ban on the use of fossil fuels by the year 2040.

Which TWO of the following would be realistic responses to the scenario?

The managers of a company are agents for the shareholderstasked with increasing shareholders' wealth. Which of the following will usually increase shareholders' wealth?