QUESTION: 53

The Finance Director has been asked to produce a cost saving plan for the organisation which is to come into effect immediately. His initial suggestion to enable quick savings is to cut the staff development and training budget by 50%. Before he publishes the plan he has asked you to review it and let him know what the effect of this may be in the short term.

Select ALL that apply.

Key staff may leave
Staff skill levels may reduce
There may be a loss of competitive advantage
Profit will increase
Recruitment may be more difficult
Staff motivation may reduce

Answer(s): D,E,F

Show Answer Next Question

QUESTION: 54

Continued improvements in Information Technology have encouraged organisations to use IT increasingly to assist in their development. Which of the following is such an improvement in IT?

Increased data storage capacity
Improved operations and manufacturing processes
Improved communications systems
Improved decision making processes

Answer(s): A

Show Answer Next Question

QUESTION: 55

A high volume operation is likely to be characterised by which of the following?

High capital intensity
High labour pay rates
High labour flexibility
High cost inputs

Answer(s): A

Show Answer Next Question

QUESTION: 56

XY Company operates a flexible manufacturing system, manufacturing a single standard product. What is the disadvantage of this system if the organisation expands its product range?

The cost of enhanced flexibility
The ability to change between jobs
Fast response times
Small batches can be accommodated

Answer(s): A

Show Answer Next Question

Free CIMA E1 Exam Braindumps (page: 31)

QUESTION: 53

QUESTION: 54

QUESTION: 55

QUESTION: 56

E1 Exam Discussions & Posts