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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: 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 |
| Topic 2: Costing | 25% | - Job, batch, process and service costing - Cost estimation techniques - Overhead allocation, apportionment and absorption - Cost classification and behaviour - Marginal and absorption costing |
| Topic 3: Planning and Control | 30% | - Standard costing and variance analysis - Performance measurement and reporting - Budgeting methods and techniques - Budgeting concepts and preparation |
| Topic 4: Decision Making | 35% | - Pricing decisions - Cost-volume-profit analysis - Investment appraisal techniques - Relevant costing for short-term decisions - Risk and uncertainty analysis |
Refer to the exhibit.
The following information is available for a production process:
The cost per unit of good output is:
Give your answer to 2 decimal places.
Correct Answer:
£13.17
An increase in the variable cost per unit, will cause the point at which the line plotted on a profit/volume (PV) graph intersects the horizontal axis to:
Correct Answer: A 🗳️
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: C 🗳️
A manufacturing company has four production departments. Overheads have been apportioned between them as follows:
It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units What will the overhead absorption rate per unit be in £'s?
Select the correct answer from the choices below
Correct Answer: D 🗳️
Refer to the exhibit.
A manufacturing company makes a product called 'Delta'. Each unit of product 'Delta' uses 4 kgs of raw material. Data for next month's budget for product Delta is as follows:
How many units of product 'Delta' should be produced in the month?
Correct Answer: B 🗳️
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