Certified Construction Industry Financial Professional (CCIFP) Study Tips

Certified Construction Industry Financial
Professional (CCIFP) Study Tips.




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, Certified Construction Industry Financial
Professional (CCIFP) Study Tips.
1. Finance Manager 1) Monitor company's profitability, liquidity and solvency
Financial Manager's Objectives 2) Ensure timely and accurate financial reporting
3) Establish and maintain ettective internal accounting
controls

2. Finance Manager -
Profitabili- ty 1) Job profitability
2) Unapplied contract related cost
Four Components of Profitabil- 3) G&A Expenses
ity Monitoring 4) Financing related expenses & investment income

3. Finance Manager - 1) Cost Recovery - proper recording of job costs as
Profitabili- ty
supported by:
Job Profitability - Cost Recovery
a. Independent documents
b. Consistent with project contract
c. Reflects all costs incurred
4. Finance Manager -
Profitabili- ty
Job Profitability - Unapplied Expenses related to contract performance that may not
Contract Related Costs get charged directly to job expense:
a. Management salaries
5. Finance Manager - b. Year-end bonuses
Profitabili- ty c. Warranty expense
General and Administrative
ex- penses Cost that are not directly related to performing the job con-
6. Finance Manager - tract.
Profitabili- ty a. Costs need to be monitored
Financing Related Expenses b. Budget should be setup
and Investment Income

7. Finance Finance Manager ensures that the company earns the
Manager maxi- mum return on liquid assets and incurs the
Liquidity minimum interest on borrowed capital.


Finance Manager responsibility related to liquidity:
a. Forecasting
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