Cima P2 Exam Question 34

Question No 34:

A company is considering four mutually exclusive projects. There are three possible future demand conditions but the company has no idea of the probability of each of these demand conditions occurring. The forecast net present values (NPVs) of each of the four projects, under each of the three possible future demand conditions, are as follows.
 

Which investment would be selected using the maximin criterion?

A. Investment A
B. Investment B
C. Investment C
D. Investment D

Answer: C

Cima P2 Exam Question 33

Question No 33:

Which TWO of the following are examples of management information made possible by the availability of big data?

A. Customer profitability analysis to identify key strategic customers
B. Customer information harvested from social media to target products
C. Production cycle time analysis to improve production efficiency
D. Real-time inventory management information shared with producers to influence their production plans
E. A five year history of a company's aged debtor list to assess the long-run effectiveness of credit control

Answer: B, D

Management accounting skills in demand in Grimsby

Member of the Chartered Institute of Management Accountants (CIMA) in the region of Yorkshire and Humber won almost double the national average wage in the UK in 2015.

Higher wages

CIMA members earned an average base salary of £ 53,025 last year, almost double the average salary of £ 27,000 in the UK.

Over 50% of CIMA students in the region of Yorkshire and Humber will also receive a bonus last year, which is 6% of their annual salary. Those who are qualified receive a higher bonus of 7%.

CIMA CEO Andrew Harding FCMA, CGMA, said the revenue potential of the members of the professional body in Grimsby remained at a high level, "driven by the importance and value of their business knowledge."

Strong demand and opportunities

Harding added that there is a strong demand continues in management accounting skills that companies seek greater support in decision-making.

"Companies in Grimsby know the benefit of strong skills in management accounting value of conduct and risk management and, therefore, management accountants increasingly sought - and received higher pay accordingly," he said.

Management accountants in Yorkshire and Humber are unsure about their career prospects, with more than half of the intention to change jobs in the next two years and 5% planning to seek employment abroad.

Harding addressed this, saying that the business is "growing world" and that the opportunity to work across different cultures is a "very valuable skill."

Kenneth Ashe Receives Chartered Global Management Accountant Designation

Kenneth Ashe, director of the financial reports of Prudential Financial, received the Chartered Global Management Accountant (CGMA) of the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants.

Kenneth Ashe, director of the financial reports of Prudential Financial, received the Chartered Global Management Accountant (CGMA) of the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants. CGMA designation recognizes professionals with deep understanding of the skills of finance and business has expanded its expertise in the management accountants to help them achieve better business decisions.

"I am honored to receive the CGMA designation and delighted that the accounting profession recognizes that management accountants bring value to organizations," Ashe Said. "This designation represents a commitment to higher education, ethics and professional development that are essential for professional success."

Ashe spent 10 years in management and accounting 4 large Fortune 500 companies, including Standard and Poor, EY and Prudential Financial. Ashe holds a Bachelor of Science in Accounting and a Masters in Accounting with specialization in corporate finance at the Weatherhead School of Management at Case Western Reserve University.

Ashe, Certified Public Accountant (CPA) and Project Management Professional (PMP), a member of the American Institute of Certified Public Accountants, the Institute of Project Management, Mensa and Toastmasters International.

ACCA and IMA See Role for Accountants in Integrated Reporting

The Association of Chartered Certified Accountants and the Institute of Management Accountants issued a new report on how accountants can play a key role in the transition to integrated presentation of reports.

The report, "From Shared Value Share Value: Analysis of the role of accounting in the development of integrated reports in practice," examines the recent movement in Europe reports integrated into these reports in particular. both companies explained their own financial performance and the social and economic impact they make.

Integrated, or IR, reporting is defined as a concise communication about the strategy, governance, performance and prospects of the company, in the context of its external environment, leading to the creation of value in the short, medium and long term.

The report explains how accountants can help identify areas for improvement and development of solutions. The implementation of new accounting methods requires careful design guidelines and processes, and accountants can play an important role in the development of the composite report.

"I think the adoption of the IR will not reach its full potential, including the United States, unless, as the accounting community, we took several steps to lay the groundwork for a transformation of external corporate reporting," said IMA VP Raef Lawson research and policy in a statement.

CFO can be IR project managers in their companies, while accountants, management accountants and auditors have an important role to play in developing the right to recognition of capital, systems right information and the right insurance for reported information, according to the report.

"The role of accounting in the execution of IR are paramount. CFO can be project leaders IR within their companies," said Faye Chua, director of corporate vision of ACCA. "Accountants, management accountants, and auditors have an important role to play in the development of law recognizing the right of capital information systems, and insurance law of reported information."

Updated Certification In Business Accounting

KUALA LUMPUR: The Chartered Institute of Management Accountants (CIMA) has launched an updated CIME accounting certificate (Cert BA), whose assessments as part of the update program will start in January 2017.

In a statement, the largest professional organization of management accountants in the world says the update consolidates four of five subjects in existing programs.

"The previous business math autonomous subject is now integrated into other subjects, allowing contextual practical application of mathematics.

"The full content of the program was revised and updated after thorough global industry and research in education, ensure its current and relevant," he added.

Executive Director of CIMA Education, Noel Tagoe said Cert BA was designed to bring people and successful businesses by developing skills and unlock talents.

"The update Cert BA is based on extensive research and consultation with employers and educators around the world, ensuring that the program continues to reflect the new challenges facing companies and satisfies their need for qualified professionals committed and specialized, "he added.

Previously, CIMA has introduced a computerized and updated content classification for professional qualification based on rigorous research and the Chartered Global Management Accountant World (AMG) newly created CIMA competency framework.

While the update Cert BA is an independent rating also continues to serve as a prerequisite for professional qualification.

CIMA also said the update now Cert BA more strongly aligned with the professional qualification by integrating the framework CGMA skills and integration of the "three pillars of learning" structure.

CIMA’s Vision For Management Accounting