Businesses guilty of wasting 5% of revenues a year

Global organizations unnecessarily lose an average amount of 5% of turnover each year, according to a new study by the Institute of Management Accountants (CIMA). followed by systems and inefficient processes - - among the most common causes of losses projects with 75% of support costs wasted in this area were delayed (74%) and open projects, but later canceled (55%).

 CIMA interviewed more than 2,000 financial professionals, half (50%) admitted their organizations lack any strategy to boost cost competitiveness. Another third (33%) of respondents said there is little or no mandate within their organizations to reduce costs when making decisions daily.

Demonstrate a gap between expectations and reality, 80% of respondents believe that the promotion of a culture were aware liability costs of your management team. But on the contrary, the results revealed that only 1 in 4 companies (25%) of a member of the board responsible for maintaining cost competitiveness.
Peter Spence, director of China research performance management, said:

"The lack of a cost conscious culture is a threat to the competitiveness of the UK - can be as innovative or as creative as we like but if our products and services cost too much, we are not maximizing our profits and we risk losing out to cheaper competitors.

"However, the cost is not just being cheap. It is the integration of a cost-conscious culture, so that all decisions at all levels of the company, focuses on the return on investment".

As for the lack of incentives in organizations to change bad habits, one third (32%) of respondents said that employee incentives are poorly designed to promote cost control; with a quarter (25%) believe that cost containment strategies are ineffective. Another 36% believe that technology and analytical data are misused within their organizations. Peter Spence said:

"The balance between short- and long-term requires the commitment of management accountants, who have a good understanding of the factors of cost, risk and value across the value chain members of the organization CIMA have never been more relevant. ensure sustainable success in the volatile world of business today, where there is uncertainty in every corner. "

The Chartered Institute of Management Accountants (CIMA), founded in 1919, is a leading and largest professional body of management accountants with more than 227,000 members and students operating in 179 countries, working in the heart of the business. CIMA members and students work in industry, commerce, the public sector and non-profit organizations. CIMA works closely with employers and sponsors cutting-edge research, constantly updating its qualification, professional experience requirements and continuing professional development so that it remains the choice of employers in recruiting financially trained business leaders.

Professionalism and ethics are at the core of the activities of CIMA with all members and student bound by strict rules to combine integrity, experience and vision.

CIMA has formed a joint venture with the American Institute of Certified Public Accountants (AICPA) to establish the Chartered Global Management Accountant (CGMA). CGMA is the global quality standard that further elevates the profession of management accounting. The designation recognizes the most talented management accountants and committed to the discipline and skill to drive strong business performance.

CIMA is proud to be the first professional accounting body to offer a truly global product in the fast-moving area of ​​Islamic finance. CIMA also offers a bachelor's Global Business Services, in collaboration with The Hackett Group, the first and only in the world of professional qualification in the shared services and outsourcing arena.

Transformation cost is a concept designed by Peter Spence on the basis of accounting principles Global Management. It is based on the idea that once a business model is established, 80% of costs are locked in life. Before companies determine a plan or a strategy, we must consider the following:

The model includes six critical success factors divided into two zones behind the wheel of a conscious cultivation costs (efficiency) and a competitive cost advantage (making sure the final product is competitive).

Cima E1 Exam Question No 52

Question No 52:

Which ONE of the following is an example of secondary market research?

A. Telephone surveys to identify purchasing intentions
B. Focus group meetings to identify product preferences
C. Online questionnaires to identify buying habits
D. Use of search engines to identify market growth trends

Answer: D

Nigeria: 'Things Will Get Worse in the Economy Before It Gets Better'

Chidi O. Ajaegbu last is president of the Institute of Chartered Accountants of Nigeria (ICAN). He is the Executive Director (CEO) of Heritage Capital Markets Ltd, a member of Coping Nigeria Stock Exchange (NSE). In this interview, take a critical look at the state of the economy in that the first verdict should put the worse for the country before there would be a 'turnaround f.

The economy is challenged on all fronts in Nigeria when and Central Bank Policies beaten yet rated stabilize para. What is your perspective on the situation and the various policy initiatives CBN?

I think the problem is much deeper than the various policies The Central Bank of Nigeria (CBN) has esta producing address the issue. I think its peripheral something political in nature; I think no child Sustainable Strategic.

Whenever we said that while there is s objective assessment are transparency regarding the Implementation of the Policy and its impact on people and not go one CAPABLE be really determine policy appropriate one our conditions, not only in this difficult time Economy paragraph ours, but ours when we raise.

Today we face our subsequent dramatic decline in prices in Crude Oil and because there is or governors have addressed the issue f of diversifying our economy and corruption that always seem to fall into a major crisis hay when volatility the crude oil market.

There is no doubt that things will get worse on the economy of the above improve. Massive job will be losses in all sectors, regardless of policy appears. The key, I think the government has the right is the recovery of funds and Stolen Focus on Effective Revenue.

Many countries in the world today in mainly dependent on taxes on the operation of the additional economies. But you see, we Nigerians, we have a way - Crude oil is the cheapest way. ALL THE any characters lazy to think and work and now there is crude oil. And finally, in the next 10 years 15, there will be alternative sources of energy to crude oil.

If we are really serious about prep Feasibility de este project called Nigeria, I think it's the right time if not the end, Parr The Government start a think seriously about how to diversify the economy in reality is that in 15 years or so is the crude oil is sold for $ 5 to $ 10 or there will be other sources of energy much cheaper and crude oil.

The only reason we still are talking about export of crude oil is now a queue because of the cost of crude oil per barrel is less than the cost of shale gas and oil production in the United States because these things discovered fuerón large amounts of crude US oil now sells for maybe 50 $ - 55 $, Our ability to export crude oil or refined products is drastically reduced DUE has the gas of Competition shale and oil will be completely beyond US.

CBN has always maintained official The value of naira despite calls devaluation of the local currency. Do you think it is appropriate for the To Do CBN given pressure sober Currency?

My opinion is that the CBN policy is unsustainable; If is a direct foreign investment in this awful country. Actually, it is a policy that should be immediately reviewed. The President should be informed of the SE does not comply with orders scammers. Finally devalue Hay Que. We can not be selling illusions Dollars N199 $ 1 when the market rate is N373 $ 1 you know that unsustainable hay; It is unrealistic.

The international community knows that the right rate. I'm not saying you should completely deregulate the currency but needs to be done to achieve v SAID that tries to market dynamics. But somewhere to sit say there will be a seller when the market is given N199 N373 ridiculous and unsustainable.

You are an important player in the capital market. How has policy will affect the market?

Because a queue capital market largely consists of foreign investors coming to the market. So you have bid more than the majority of the populations there has continued GLUT on the market.

Of course, this is basic economics; When you have Oversupply is sober order, The Caera Price. This is what we live there ABLE get a good value for money you will not be able to get because they are not going to go through the Black Market.

So we have to devalue the aim to encourage foreign investors to enter not only in the Chinese capital market Also in other aspects of Nigerian economy.

Say no when the currency devaluation Questions really the true value of the coin percent from a more than 50 from the place of USING Carry out Transactions is a simply ridiculous; It makes no sense that No. And finally, how about the price of oil if devalue continues to fall.

When our foreign reserves just under $ 20 million, Mil, El País start looking measures to address realistic devaluation of naira question f. As it is now, just a Dream world are in: mass change terms we use to transact business vis-à-vis the dollar.

Cima E1 Exam Question No 51

Question No 51:

The desirable features of a candidate for a job are best contained in which ONE of the following?

A. A person specification
B. A job description
C. A job advertisement
D. A verbal briefing at the interview

Answer: A

Singapore Businesses Less Pessimistic, But Still Less Confident than Global Peers

Singapore rallied from a four-year low in the fourth quarter of 2015, but remains largely pessimistic and worst of the global levels, according to the Global Economic Conditions Survey by the Association of Chartered Certified Accountants (ACCA) and the Institute management accountants.

The index of confidence surveys for Singapore recovered from -55 to -60 in the fourth quarter of between -70 and -75 in the third quarter when a negative score represents pessimism. The confidence index was generally between -20 and -30 in the fourth quarter.

About two-thirds, or 66 percent, said Singapore companies in the fourth quarter were less confident in the outlook compared to the previous three months. The proportion of global companies with a similar response was only 44 percent.

The drop in orders was a concern for 38 percent of the companies in Singapore, compared to 25 percent worldwide.

China's slowdown was a major concern for global companies, organizers of the survey, said, noting that 40 percent of companies reduced their investment plans and 52 percent do not intend to increase staff.
government stimulus expectations are silent.

Faye Chua, director of corporate vision of ACCA, said: "There is a long list of concern in the development of most global companies stakes are high and it is not surprising that the response to the decline in scaling opportunities return on capital investment and employment, which. in turn, contribute to the continued slowdown of the world economy. this combined with the fact that many governments are forced to cut spending means that there is reason for concern. "

Cima E1 Exam Question No 50:

Question No 50:

Results and enablers are features of which ONE of the following?

A. Servqual
B. Total Quality Management (TQM)
C. The European Foundation for Quality Management (EFQM) excellence model
D. Competitive bench marking

Answer: C

IMCA's CIMA Certification Revamped

In an effort to provide "voluntary standard investment advice," IMCA has reviewed the policies underlying their CIMA certification, requiring that advisors are acting in the best interests of their clients.

The changes come in response to the 2013 analyzes the work of the organization, which interviewed more than 750 investment professionals worldwide in prioritizing investment strategies and operations.

One of the most radical changes in the organization of certification includes modifications to the revised code of professional responsibility, IMCA said. licensed in December, professional members of IMCA, candidates of certificates and licenses are now required to act in the best interest of the client, hear and resolve conflicts of interest and maintain a "high level of ethical conduct".

Following a resolution adopted last year, candidates will also no longer have to wait three years to implement, but it is still a waiting period of three years to receive certification. Candidates were also allowed to qualify for their CIMA certification in the MIT Sloan School of Management, the fourth school to provide an online option for certification CIMA education.

The changes come at a time when customers mention the strategies and knowledge as the most sought after skills as a consultant is used, even through their planning strategies for financial management, according to customer IMCA study in 2015.

"These revisions provide a new voluntary certification CIMA standard investment advice," said Sean R. Walters, Executive Director and CEO of IMCA. "Certification CIMA will continue to grow as more relevant credentials for discretionary advisers who provide investment advice to their customers."

Cima E1 Exam Question No 49

Question No 49:

 Supplier relationships in a supply network are categorised in which ONE of the following ways?

A. Single, multiple, delegated and parallel
B. Primary, secondary and post-purchase
C. Phased, pilot and integrated
D. One-to-one, several to one, 180 degrees and 360 degrees

Answer: A