CIMA MCS February 2018 – Ratio Analysis for Management Case Study

Justyna Wachulka-Chan

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Commercial and Ethical Implications of Flawed Chairs

  • The Finance Director requests an urgent draft report on quality concerns regarding ZX Primo Chairs.

  • A production issue is identified: gas cylinders and castors are not meeting weight standards, causing ergonomic failures.

  • The Production Director believes the defects are minor and supports continued distribution, despite concerns about quality assurance and ethical implications.

Total Quality Management (TQM) Implementation

  • The Financial Controller discusses improving quality assurance procedures after the ZX Primo Chair failure.

  • The briefing note should cover how TQM principles can enhance manufacturing and potential change management challenges.

Kordia Premier Bank Lease Proposal

  • Kordia Premier Bank (KPB) proposes leasing office furniture for 15 years instead of purchasing it outright.

  • The Finance Director requests an explanation of “substance over form” reporting and whether the proposal aligns with ZX’s strategic direction.

Expansion into Verlan

  • ZX plans to move operations to Verlan to support international expansion.

  • An intern prepared a rough NPV calculation, and the Financial Controller requests a review of potential errors in assumptions.

  • The analysis should also identify affected stakeholders based on their power and interest.

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About the Author

Justyna Wachulka-Chan

Justyna is a seasoned professional with 8 years of dedicated experience in the computer-based accounting and finance certification coaching industry. She is committed to providing students with the knowledge and tools necessary to succeed on their exams.

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