Accountant Strategic Case Study - CIMA-SCS Exam Questions

QUESTION NO: 1
- Will be unable to manage customers inventory
- Storage and handling service will stop at a loss to company productivity
- Causes increased labour cost and cashflow problems

QUESTION NO: 2
- Can deliver inventory all over warehouse
- Take over monotonous tasks and save cost through reduced headcount
- Reduce human error
- Increase delivery speed
- Robots can be more reliable than humans

QUESTION NO: 3
- Use net assets as basis
- Difficult to apply to businesses with high intangible assets
- Useful when valuing capital intensive businesses (not useful in service)
- Avoids need to forecast future earnings or cashflows

QUESTION NO: 4
- Transaction risk (movement between transaction date and payment date)
- Economic risk (long term movements)
- Translation risk (changes on translation of assets/liabilities in y/e accounts)

QUESTION NO: 5
- Hard to value intangible assets (such as brand)
- Won't be on balance sheet usually
- Would need to carry out due diligence

QUESTION NO: 6
- Training on cyber security upon starting at company and refreshed annually
- Policies for staff set up
- Hardware controls such as biometrics
- Software controls such as passwords, 2FA, tokens
- Should not use personal devices

QUESTION NO: 7
- Reputational risk depending on media coverage
- Staff redundancies
- Costs overrunning
- IT compliance needed
- More prone to hacking due to new tech
- Do Daistruk have resources to deal with robots on day to day basis?
- Robots may not work as required

QUESTION NO: 8
Pinhole

QUESTION NO: 9
- Implement a write off process for unsellable products
- Destroy defected products
- CCTV system in place
- Visitor log to track who goes in and our of factory

QUESTION NO: 10
- Effort needed to acquire new customers once initial customers have been converted

QUESTION NO: 11
105 - 110 F

QUESTION NO: 12
- Pay fixed sum per share to each LHD shareholder
- Would require Daistruk to raise finance unless under R$32m they currently hold
- Could impact gearing
- Easy to understand, most transparent and obvious

QUESTION NO: 13
Primary:
Inbound logistics, Operations, Outbound logistics, Marketing & Sales, Service
Support:
Firm infrastructure, HR management, Tech development, Procurement

QUESTION NO: 14
some investors find that capital gains are more tax-efficient than dividends and some investors avoid transaction cots of their returns are delivered in the form of capital gains instead of dividends. Despite
this, investors usually prefer to receive dividends because they would rather the certain dividend now, than the promise of a uncertain dividend in the future.