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CIPS L6M5 Exam Syllabus Topics:
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CIPS Strategic Programme Leadership Sample Questions (Q18-Q23):
NEW QUESTION # 18
Casper is conducting a Variance Analysis of the company's budget. What is its main purpose?
Answer Options:
Answer: B
Explanation:
A Variance Analysis (p.95) compares planned vs. actual budget and identifies inefficiencies to enhance financial performance. Option A focuses only on overspending, B on cost-cutting, and D on categorizing costs rather than improving efficiency. [P.95]
NEW QUESTION # 19
Danger Incorporated is estimating the costs for a new project called the Ninja Project using an algorithm based on the project's scope, duration, and complexity. What type of cost estimate is being used?
Answer: B
Explanation:
Using an algorithm based on key parameters is characteristic of a parametric cost estimate.
NEW QUESTION # 20
Which of the following statements about investment appraisal techniques are true? (Select all that apply.) Answer Options:
Answer: B,C,D
Explanation:
Option B is correct - ROCE is expressed as a percentage (p.87).
Option C is correct - Payback Analysis only considers the break-even point (p.83).
Option D is correct - IRR and NPV are often used together (p.82).
Option A is incorrect - Profit maximization is not the primary focus of non-discounted cash flow methods. [P.82-87]
NEW QUESTION # 21
Juno is completing a Variance Analysis on the sales department's spend for the first quarter. He concludes that there is a Favourable Variance. What does this mean?
Answer: D
Explanation:
A favourable variance means that the actual performance was better than expected.
NEW QUESTION # 22
Scenario (same as Question 16):
In terms of the Cultural Web, which of the following impacts on staff behaviour?
Answer: B
Explanation:
Stories (in the form of rumours) about the CEO affect how staff behave.
NEW QUESTION # 23
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