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| Section | Weight | Objectives |
|---|---|---|
| Decision Making | 35% | - Risk and uncertainty in decision making - Relevant costing for short-term decisions - Cost-volume-profit analysis - Pricing decisions - Capital investment appraisal |
| Costing | 25% | - Cost classification and behaviour - Process costing and joint products - Absorption and marginal costing - Activity-based costing - Materials, labour and overhead costing |
| The Context of Management Accounting | 10% | - Business environment and organizational structure - CIMA code of ethics - Comparison with financial accounting - Role of management accounting |
| Planning and Control | 30% | - Variance analysis - Budgeting concepts and preparation - Reporting for control and performance measurement - Flexible budgets and standard costing |
A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.
Which TWO of the following will NOT help with this reconciliation? (Choose two.)
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:
The possible returns and associated probabilities of two independent projects are as follows:
It has been decided that both projects are to be launched.
Which TWO of the following statements are correct? (Choose two.)
Data for the latest period for a company which makes and sells a single product are as follows:
There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:
The forecast costs per unit for a new product are as follows:
The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?
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