CIMA CIMAPRO19-P03-1 Free Sample Exam Questions 2026

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Total Questions: 275

Questions & Answers PDF

• Question 1

  

  YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage.The project was the responsibility of the production department, which is presently managed by G.When the project was proposed, the production department was managed by H. H is now YGH's Director of Operations.How should the finding from this post completion audit be interpreted?

  • YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.
  • The production department should not be granted funding for future projects unless there are compelling reasons to proceed.
  • G should be held accountable for the overspend on the project.
  • H should be held accountable for the overspend on the project.

  Reveal Answer Answer: A Next Question

• Question 2

  

  DFG's home currency is the D$.DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency. DFG's treasurer has noted the following:* Inflation has been running at 5% in DFG's home country and 8% in country L* Interest rates are 7% in DFG's home country and 11% in country L* The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196Which of the following statements is consistent with these figures?

  • Interest rates are expected to continue unchanged, but country L's inflation rate will increase in proportion to the inflation rate in DFG's home country.
  • Interest rates are expected to continue unchanged, but country L's inflation rate will decrease in proportion to the inflation rate inDFG's home country.
  • Country L's interest rate is expected to decline relative to that of DFG's home country and inflation rates are expected to continue unchanged.
  • Country L's interest rate is expected to increase relative to that of DFG's home country and inflation rates are expected to continue unchanged.

  Reveal Answer Answer: A Next Question

• Question 3

  

  VBN's home currency is the V$. On 1 January, VBN must make a payment of C$2 million on 31 March of that same year.On 1 January the spot exchange rate was V$1 = C$0.4.On 1 January VBN paid $180,000 for a call option to buy C$2 million for V$5.5 million on 31 March. VBN's cost of borrowing was 8% per year.On 31 March the spot rate was V$1 = C$0.45.What was the total cost, including the cost of the option, of settling the payable?

  • V$4.628 million
  • V$5.684 million
  • V$4.444 million
  • V$5.5 million

  Reveal Answer Answer: A Next Question

• Question 4

  

  CH makes a popular type of chocolate bar The bars are made on a production line and are scanned for size and shape as they move along the line Wrong sized and misshapen bars are rejected as being poor quality. The scanner detects 90% of poor quality bars. If CH wants to reduce the risk of poor quality bars being sold to the public it can add a further check by a person scanning the production line as well. this check would detect 80% of poor quality barsIf the further check was implemented what percentage of poor quality bars would still get through the checking process?

  • 7.2%
  • 10%
  • 30%
  • 2%

  Reveal Answer Answer: D Next Question

• Question 5

  

  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?

  • Work with politicians to discredit the proposed restrictions on the use of fossil fuels
  • Commission research into the development of battery-powered aircraft
  • Adapt existing engine designs so that they can use plant-based fuels, such as vegetable oils
  • Dispose of manufacturing plant and move into more sustainable transport, such as electric trains
  • Develop more efficient engines that minimise the use of fossil fuels

  Reveal Answer Answer: B, C Next Question

• Question 6

  

  WhichTHREEof the following are principles of good corporate governance according to the UK Corporate Governance Code?

  • Leadership
  • Reliability
  • Remuneration
  • Honesty
  • Accountability

  Reveal Answer Answer: A, C, E Next Question

• Question 7

  

  MNBis a multinational IT company with headquarters in Asia and with operations in all continents.MNBisattempting toexpand its operations in Europe. This is seen as a major challenge as the European market is very well developedand highly competitive.MNBdevelopsandmanufacturesits own products. Parts and assemblies aresourced across Asia, America and Europe. These are sometimes purchased locally as a condition of a contract, but MNB aims to include as much of its own equipmentas possible. Transfer pricesbetween MNB's subsidiariescan be set in YEN, USD, EURO, GBP. Transfer prices are revised every month in line with production times as most goods are made on short order with sales cycles running at 3-4 months.What types of risk are being presented here?

  • Political risk
  • Currency risk
  • Economic risk
  • Environmental risk
  • Fraud risk
  • Legal risk

  Reveal Answer Answer: A, B, C Next Question

• Question 8

  

  K is a large mining company. Initsrisk reportitstates that there is a risk of accidents and injury because of the nature of the industry. Itstates thatithasstaff training in place and complieswith allHealth and Safety regulations but in spite of this there will still be a residual risk that accidents and injuries may occur.Which of the followingstatements are correct?

  • The shareholders should not invest because there is still a residualrisk.
  • The directors are avoiding their responsibilities by saying there is a residual risk.
  • Some risks cannot be eliminated.
  • Accepting a residual risk does not imply the company is reckless.
  • Most companies in this industry will say something similar in their risk report.

  Reveal Answer Answer: C, D, E Next Question

• Question 9

  

  Which of the following statements are true of economic risk?

  • Economic risk is easy to measure
  • Economic risk may be caused by international trade
  • Economic risk is something which cannot be avoided
  • Economic risk is influenced by many factors

  Reveal Answer Answer: B, D Next Question

• Question 10

  

  ERT is choosing between two maintenance policies for its vehicles. The outcomes of these policies are difficult to predict and so ERT has run a simu-lation of both.Policy 1 has an expected annual cost of $400,000 per year, with a standard deviation of $80,000.Policy 2 has an expected value of $350,000, with a standard deviation of $150,000.Which of the following statements are correct?

  • Policy 2 is the more risky.
  • Policy 1 will always be the more expensive in any given period.
  • Policy 2 is the more likely to cost more than $500,000 in any given year.
  • Policy 2 has the greater potential upside risk.
  • Policy 2 is clearly the better policy.

  Reveal Answer Answer: A, C, D Next Question

Page: 1 / 55
Total Questions: 275

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