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| Section | Weight | Objectives |
|---|---|---|
| The Context of Management Accounting | 10% | - Global Management Accounting Principles - Characteristics of useful financial information - Role of CIMA and professional ethics - Role and purpose of management accounting |
| Costing | 25% | - Marginal and absorption costing - Cost classification and behaviour - Overhead allocation, apportionment and absorption - Cost estimation techniques - Job, batch, process and service costing |
| Decision Making | 35% | - Risk and uncertainty analysis - Investment appraisal techniques - Relevant costing for short-term decisions - Cost-volume-profit analysis - Pricing decisions |
| Planning and Control | 30% | - Standard costing and variance analysis - Performance measurement and reporting - Budgeting concepts and preparation - Budgeting methods and techniques |
Refer to the exhibit.
Each unit of product 'Smitten' uses 5 kgs of material 'Z'.
The budgeted details for March are as follows:
It is anticipated that sales of product 'Smitten' in March will be 20000 units.
The amount of material 'Z' that needs to be purchased in March is:
Correct Answer:
110491 kgs
A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:
Correct Answer: B 🗳️
The following data relate to the latest period.
A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit.
Which TWO of the following will appear on this statement? (Choose two.)
Correct Answer: C,D 🗳️
GB Limited operates a standard costing system. During the month 18,500 labour hours were worked at a standard cost of $6 per hour. The labour efficiency variance was $8,700 favourable.
How many standard hours were produced?
Correct Answer: A 🗳️
A new range of clothing is very unique and will not appeal everyone. You are aware that if you were to equally distribute all the units there is a chance that they would not all sell.
You decide that the best option would be to select specific stores in which to sell the items, making them rare and desirable. This way they will become highly sought after.
However, whilst this has the potential to be very profitable it also has the lowest probability.
By making this decision you are considered to be_______.
Correct Answer: B 🗳️
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