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What are CIMA’s five fundamental principles?
- Professional competence and due care
- Professional behaviour
What is meant by the consequentialist approach to ethics?
Whether something is right or wrong depends on the consequences, or outcome, of the act.
What are intrinsic and extrinsic rewards?
- Extrinsic: rewards that arise outside the employee and include pay, praise by a manager and promotion.
- Intrinsic: rewards that arise from psychological enjoyment and the satisfaction of challenge and a feeling of having done well.
What are the three approaches or types of job design and which is expected to be most effective in improving motivation in the long term?
- Job enlargement
- Job rotation
- Job enlargement: usually most effective as it introduces significant new tasks and challenges
Who developed the hygiene theory of motivation?
What is the difference between ‘training’ and ‘development’?
- Training: very specific and dealing with current employees needs for their current job.
- Development: less specific and more aimed at equipping employees for future jobs.
What is a competency framework?
A method of describing the values, skills and abilities that are required to perform given roles. They also provide clear focus to for recruitment and to support the development of staff in order to deliver the best possible performance.
To define a framework for a given role there will be a general description of the competency followed by a list of attitudes, behaviours, skills and abilities that would indicate competence in the relevant area.
Lockett suggested six barriers to human performance appraisal. What are these?
- Unfinished business
What is meant by an ‘open appraisal’?
Initially, the appraisal form is blank and the manager and employee go through it together discussing what the mark should be.
Why is a planning stage necessary in human resource management?
Human resource planning should be based on the strategic plan of the organisation and there has to be a human resources budget based on future estimated needs
What are the two axes on a Boston Consulting Group matrix?
- Market growth rate
- Relative market share
What is life cycle costing?
The concept of life cycle costing recognises that, if a profit is going to be made, revenue has to cover all costs, not just the production costs.
- Initial costs – before production
- Operating costs – during production
- Disposal costs – after production
In order, what are the four (or five) stages of a product life cycle?
The marketing of products and services differ in five respects. What are these?
- No transfer of ownership
What are the three categories of market research?
- Desk research
- Field research
- Test markets
What are the 6Is of e-business?
- Independence of location
- Industry (structural change)
What is meant by ‘the price elasticity of demand’?
This describes how demand changes as prices change. A high elasticity of demand means that the product is very price sensitive.
What are the four types of competition?
- Perfect competition
- Perfect competition
- Monopolistic competition
What are the four influences on a product’s price? (4 Cs)
What is price skimming?
A very high initial price is set for a new product as there will be some consumers willing to pay that. The price is then gradually lowered to attract less wealthy or less desperate consumers.
What are the 7Ps of product positioning?
- Physical evidence
What are the three types of market targeting?
What is market segmentation?
Breaking down the market into different sections or segments to decide what type of products or services buyers in each might want.
What are the elements of the PESTEL model?
Lists potential macro-environmental influences:
What is meant by ‘reverse logistics’?
Reverse logistics refers to all operations related to the reuse of products and materials.
Its purpose is to recapture value or to achieve proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics.
What is DMAIC?
DMAIC stands for: define, measure, analyse, improve and control. It is part of the 6sigma approach to improving quality.
What is ‘kaizen’?
The process of improving quality through a continuous series of small changes
In quality management, what are the two costs of non-conformance?
- Internal failure costs
- External failure costs
In quality management, what are the two costs of conformance?
- Prevention costs
- Appraisal costs
What is meant by Quality management?
Quality management: overseeing all the activities needed to achieve and maintain the required quality. It includes establishing the required quality level, setting quality control procedures and also considering quality improvement.
What is meant by Quality assurance?
Quality assurance: the management steps that allow an organisation to dependably achieve a stated level of quality.
What is meant by Quality control?
Quality control: processes (such as sampling and testing) that used to check on quality.
What is additive manufacturing (3D printing)?
In additive manufacturing or 3D printing material is extruded to form complex shapes which harden to produce sophisticated components that can be difficult or expensive to make in any other way.
Flexible manufacturing arises from two sources. What are these?
- Machine flexibility
- Route flexibility
What is CNC in process technology?
Computer numerical control
What are MRPI and MRPII?
MRPI = material resource planning
MRPII = manufacturing resource planning
What are the five types of supply chain relationship management?
- Value added
What is ‘lean synchronisation’?
Lean synchronisation means that products and services are always delivered to exactly match what customers want, in exact quantities and at the required time and place for delivery. Lean synchronisation should achieve these objectives at the lowest possible cost and it should result in items flowing rapidly and smoothly through manufacturing processes and supply networks.
What are the two axes of the supply portfolio matrix?
- Profit impact
- Supply difficulty
What is the difference between push and pull models of supply chains?
Push: make goods for inventory usually according to historical demand.
Pull: make goods to order. Sales orders pull production through the manufacturing process.
What are the support (or secondary) activities of Porter’s value chain?
- Firm infrastructure
- Technology development
- Human resource management
What are the primary activities of Porter’s value chain?
- Inbound logistics
- Outbound logistics
- Marketing and sales
What is meant by ‘monetising data’?
Using data to increase an organisation’s profitability, efficiency and sustainability.
What are the processes of extraction, transformation and loading?
Extraction: extracting data from a variety of sources where it might well have been held in many different formats.
Transformation: converting the diverse data into standard formats.
Loading: storing the converted data into a new database for future use.
What are the four Vs of big data?
- Veracity (added later)
What is an extranet?
Extranet = an intranet which can also access external data and other intranets.
What is an intranet?
Intranet = internal internet which access and presents data through a browser such as Chrome or Internet Explorer
Is the following statement true or false?
Cloud technology primarily uses data and programs stored locally.
False: cloud-based systems store data and programs remotely
Which of the following primarily use mobile phone technology?
3G and 4G
Describe a WAN
Wide area networks (WANs): operate over national and international distances, linking users in different cities and countries. They rely on public networks to transmit information from one local area network to another.
Describe a LAN
Local area networks (LANs): operate over a restricted area such as an office, hospital or university campus. There is usually a special machine called a file server where shared information is held and there might be a print server which allows a printer to be shared between many users.
Which level of an organisation (operational, tactical or top management) has the greatest need for external and forward-looking information?
What are the ACCURATE elements of good information?
What is the difference between data and information?
Data is raw fact. Information = data with meaning eg through summary, statistical analysis, presentation or the highlighting of significant items.
What are the two types of knowledge?
What are the four industrial revolutions?
- Mass production
- Computers and automation
- Digital assets such as big data and artificial intelligence.
Items of expense reduce profits whilst capital expenditure does not. An accountant could come under pressure to deal with expenditure incorrectly to boost profits (ie to treat expenses as capital expenditure).
This is an example of what?
A conflict of interest.
What are the three elements of managing errors and their occurrence in an accounting system?
Prevention, detection and correction.
What finance function does the following define?
“..an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
Which component of the finance function carries out tasks such the following?
- Company finance. Does the company need to raise a loan or issue more shares?
- Where to deposit temporary surpluses of funds so that they can earn some interest.
- Where to arrange temporary borrowing.
- How to reduce the risk from currency movements when importing or exporting. ? How to reduce the risk from interest rate movements on borrowing or deposits.
- Taxation management eg one subsidiary making losses available to another.
The treasury department
Why are levels three and four of the hexagonal structure of the finance function smaller than in the traditional triangular structure?
The tasks in these levels are either now substantially automated or soon will be so they require fewer people.
What are the four levels of the hexagonal structure of the finance function?
- Leading the finance team
- Partnering for value to influence and shape how the organisation creates and preserves value
- Specialists generating further insights in their areas of specialism
- Assembling and extracting data and providing limited insight
The original triangle shaped accounting function hierarchy has progressed through two other shapes. What are these?
- The segregated triangle
- The hexagonal structure
CGMA’s briefing paper, “Changing competencies and mindsets”, suggests that accountants will require four sets of skills. What are these?
- Technical skills
- Business skills
- People skills
- Leadership skills
McKinsey, a firm of management consultants, in their July 2016 quarterly bulletin have suggested that:
Applying expertise, data collection, data processing, managing others and stakeholder interactions are accountants’ functions that are capable of automation.
Arrange these in descending order of potential for automation.
- Data processing
- Data collection
- Stakeholder interactions
- Applying expertise
- Managing others
What is a ‘digital mindset’ in respect of accountants?
A digital mindset is simply one where accountants are continually aware of and alert to how digital technology will affect both them and the organisations they work for.
What is a ‘mindset’?
A mindset is an established set of attitudes and assumptions that is held by someone.
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