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 P3 Dumps with Practice Exam Questions Answers

Questions: 339 questions

Last Update: Apr 16, 2024

CIMA Certification Exam P3 has been designed to measure your skills in handling the technical tasks mentioned in the certification syllabus

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P3 Questions and Answers

Question # 1

Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?

A.

There could be a change in the technology used by consumers, such as smaller mobile phones with smaller screens

B.

Budget changes could have an impact on the funding available to college and university libraries

C.

The terms offered by media companies for film rights for books could change

D.

The quality of output from printing presses might improve

E.

Environmental concerns could lead to a decrease in the availability of trees to make paper

Question # 2

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?

A.

YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.

B.

The production department should not be granted funding for future projects unless there are compelling reasons to proceed.

C.

G should be held accountable for the overspend on the project.

D.

H should be held accountable for the overspend on the project.

Question # 3

Rio owns an architects business which employs 12 skilled architects and four administrative staff.

The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.

What are the limitations of an internal control system in Rio's business?

A.

Internal controls are only suitable for large businesses.

B.

Employees could ignore the internal controls.

C.

If Rio does not support the internal control system then the controls may not be adhered to.

D.

Internal controls may slow down the speed with which the architects can respond to enquiries.

E.

Internal controls will usually mean hiring more staff.

Question # 4

JHU has recently completed an eight year project. The project was evaluated at a discount rate of 10% and was accepted because the net present value was $18 million.

In year 3 of the project there was a significant unexpected repair arising because of the implementation stage of the project was rushed and some checks on equipment were skipped to save time. The cost of this was $8 million.

In year 8 of the project the costs of dismantling the project were $11 million more than anticipated because of unexpected changes to the law concerning disposal of industrial scrap.

How should these findings be reflected in the post completion audit?

A.

Poor project management cost the entity $6 million, to the nearest million.

B.

Poor project management cost the entity $11 million, to the nearest million.

C.

Poor project management cost the entity $5 million, to the nearest million.

D.

Poor project management cost the entity $16 million, to the nearest million.

Question # 5

TDC is a company which runs gas-fired power stations in western Europe. The Risk Committee has just received a report that a power station built to the same design and specification in a developing country has recently collapsed. The causes of the collapse are unclear but the consequences for TDC would be catastrophic if something similar were to happen in Europe

Which of the following actions being considered by the Risk Committee are ethical?

Select ALL that apply

A.

Commission a reputable firm of structural engineers to carry out a review of all power stations owned by TDC

B.

Send experts employed by TDC to the site of the collapse so that they can gather information first hand on what happened

C.

Draw up contingency plans in case some of TDC's power stations need to be shut down

D.

Decide that the information available to date is too uncertain to take any action for now

E.

Attempt to increase the level of insurance cover against this type of eventuality

F.

Issue a press release confirming that all TDC's power stations are "entirely safe'.