CIPS L4M2 QUESTIONS AND ANSWERS COMPLETE AND A.

CIPS L4M2 QUESTIONS AND ANSWERS COMPLETE AND A.
What is Functional Benchmarking? Identify 2 Pros and 2 Cons of this.
✔✔Comparing similar or identical practices with an organization outside
the immediate sector
Pros - provides industry trend information, increases improvement rates
Cons - more time consuming, requires detailed information to be
provided
What is Generic Benchmarking? Identify 2 Pros and 2 Cons of this.
✔✔Comparing unrelated business processes that can be carried out in a
similar way
Pros - non-competitive process, allows for global comparisons
Cons - difficult to compare, lengthy process
What is a financial budget?
✔✔A plan for a defined period of time (usually 12 months) to show costs,
revenue or both
What is cash flow?
✔✔The net amount of cash received and spent by an organisation within
a specific time period