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Exam E1 All Questions
Exam E1 All Questions

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CIMA Operational E1 Question # 39 Topic 4 Discussion

E1 Exam Topic 4 Question 39 Discussion:
Question #: 39
Topic #: 4

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. 


A.

Key staff may leave


B.

Staff skill levels may reduce


C.

There may be a  loss of competitive advantage


D.

Profit will increase


E.

Recruitment may be more difficult


F.

Staff motivation may reduce


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