Topics of CIMA Operational CIMA P1 Accounting
The following topics are a part of CIMA P1 Accounting module.
- Distinguish Between The Different Rationales For Costing
- Apply relevant financial reporting standards and corporate governance, ethical and tax principles
- Analyse performance using financial and nonfinancial information
- Budgeting and budgetary control
- Prepare information to support short-term decision-making
- Risk and uncertainty in the short term
- Cost Accounting for decision and control
- Prepare budget information and assess its use for planning and control purposes
- Short term commercial decision making
- Prepare information to manage working capital
Reference: https://www.cimaglobal.com/Qualifications/Professional-Qualification/Operational-level/
Understanding function and technical aspects of Distinguish Between The Different Rationales For Costing
The following will be discussed in CIMA P1 exam dumps:
- Compare different costing methods and systems to determine the most suitable for use by the organisation for different purposes
- Identify the cost information required for digital cost objects
- Evaluate the activities (e.g.) evaluate whether more/less materials were used per unit in comparison to the original plan
- Make decisions regarding activities (e.g.) purchase materials required for production
- Control the activities (e.g.) control amount of materials being used for production
- Use appropriate technologies to gather data for costing purposes, from digital and other sources.
- Plan the activities (e.g.) plan number of units to produce this year
- Apply different costing methods to produce costing information suitable for managers' needs
- Explain costing information to operational and senior management using appropriate formats and media
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What do you learn in P1?
- How budgets are prepared and implemented across the organisation, the impact these have, and how techniques are applied to ensure sound short term decision making, against a backdrop of risk and uncertainty, by using appropriate risk management tools.
- Why costing is done and what it is used for, including appropriate costing methods and techniques and where digital costing might be used.
CIMA P1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Short-term Decision Making | - Relevant costing principles - Make or buy and limiting factors |
| Topic 2: Cost-Volume-Profit Analysis | - Break-even analysis - Contribution and margin of safety |
| Topic 3: Budgeting | - Budget preparation and purpose - Cash and functional budgets |
| Topic 4: Standard Costing and Variance Analysis | - Interpretation of variances - Material, labor, and overhead variances |
| Topic 5: Costing Techniques | - Absorption and marginal costing - Overhead allocation and absorption |
| Topic 6: Introduction to Management Accounting | - Role and purpose of management accounting - Cost classification and cost behavior |
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