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Understanding function and technical aspects of Distinguish Between The Different Rationales For Costing
The following will be discussed in CIMA P1 exam dumps:
- Apply different costing methods to produce costing information suitable for managers' needs
- Compare different costing methods and systems to determine the most suitable for use by the organisation for different purposes
- Control the activities (e.g.) control amount of materials being used for production
- Evaluate the activities (e.g.) evaluate whether more/less materials were used per unit in comparison to the original plan
- 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
- Make decisions regarding activities (e.g.) purchase materials required for production
- Explain costing information to operational and senior management using appropriate formats and media
- Identify the cost information required for digital cost objects
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CIMA P1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Budgeting and Budgetary Control | 25% | - Flexible budgets and budgetary control - Behavioural aspects of budgeting - Budget preparation and approaches - Quantitative analysis for forecasting |
| Topic 2: Short-Term Commercial Decision Making | 30% | - Pricing decisions and make-or-buy choices - Break-even and limiting factor analysis - Relevant costing and opportunity costs - Working capital management |
| Topic 3: Dealing with Uncertainty in the Short Term | 15% | - Sensitivity analysis and simulation - Risk and uncertainty concepts - Basic internal control and risk management - Expected values and decision trees |
| Topic 4: Cost Accounting for Decision and Control | 30% | - Standard costing and variance analysis - Costing methods and techniques - Absorption, marginal and activity-based costing - Cost classification and behaviour |
