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CIMA Operational Case Study Mock Exams

CIMA Operational Case Study – Mock Exams – August 2019 – AKL Sparkle

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Mock exam synopses – August 2019 – AKL Sparkle

OCS Mock Exam 1 - Synopsis

Mock 1 opens with AKL Sparkle in hot water after a serious ethical issue has been uncovered in their supply chain. Initially you are asked to assess the fallout from these issues and the ethical and environmental impact of AKL’s operations.

Moving forward, AKL begins to assess its supplier relationships, with the decision making and risk levels behind changing suppliers assessed. When the decision is made to change suppliers, the company needs help with its supplier sourcing strategy, as well as in dealing with some of the financial and management accounting impacts of this decision.

OCS Mock Exam 2 - Synopsis

Mock 2 centres around AKL’s decision to expand it’s operations into online retail. The first task is to consider how competitor data can be used to assess viability of a new website, and to set out the factors that must initially be taken into consideration when choosing between developing the website in house or outsourcing this service.

In-house development then comes to the fore, with a focus on analysing the relevant costs to AKL of undertaking this project internally, and how any new assets, procured for this project, will need to be accounted for.

Moving forward, AKL’s attention is then focused on customers and staff. In particular how should the sales made to overseas customers be recorded, what type of individual should the company be looking to recruit into the new Website Manager role, and how should the company be marketing it’s products to customers?

OCS Mock Exam 3 - Synopsis

A potential acquisition scenario leads to a number of issues for AKL Sparkle to deal with. First of all, it must decide the best acquisition option by understanding the impact of various scenarios on the company. This means the company may have to re-engineer certain aspects of the finance function.

Another ongoing issue is with the enamelling department, where the staff may have motivation issues. Indeed, a staff shortage means sourcing additional labour and the question is how much extra to pay for this much needed handiwork.

As the acquisition goes ahead, the way the company produces costings may need to change to a more suitable system. Additionally, it may need to consider what costs are incurred to ensure quality.

Finally, there is a need for clarification on the impact of the acquisition on the company’s financial statements, a long with a few other things.

This is a moderately difficult mock, pulling from all areas of the syllabus.

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