CIMA Exam Tips Nov ’07

 

 

Exam Tips November ’07

TOP OF THE TIPS

 

 

 

P1

BPP

■ Variance analysis

■ Budgeting

■ Modern management accounting – both numeric techniques such as throughput accounting (generally in OTs) as well as written elements, ie, JIT/TQM

■ Traditional costing – mcqs on absorption and marginal costing. Longer questions on process costing

■ Transfer pricing and responsibility accounting (EVA/RI/ROI)

P1

First Intuition

■ Process costing

■ Throughput and backflush accounting

■ Beyond budgeting

■ Backwards variances

■ Time series

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P2

First Intuition

■ Limiting factors

■ Capital rationing

■ Net present values

■ Just in time

■ Customer profitability

■ Use of expected values

P2

BPP

■ Linear programming with graphs

■ Pricing and marketing strategies

■ Discursive question on processes for long-term decisions, including post-completion audit

■ Net present value, with either tax or inflation

■ Sensitivity analysis

■ Decision trees/multiple uncertain variables

■ Value chain analysis with profit or quality implications

■ Kaizen costing

■ Pareto analysis

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P3

BPP

Section a

■ Identification and evaluation of risk

■ Some degree of financial analysis (the question should specify the extent)

■ Risk management and management control systems

■ Budgeting processes

■ The internal audit process and any supporting work to review controls

■ An assessment of controls in place, plus suggestions for any improvements

Section b

■ Corporate governance (especially the Turnbull Guidance and combined code)

■ Currency risk management (discursive as well as numerical)

■ Interest rate risk management (discursive as well as numerical)

■ The role of the Treasury function and how it aims to manage financial risk

■ Organisational structures

■ Management accounting control systems

■ Information technology strategy and management

■ Ethics and fraud

 

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P4

First Intuition

■ Motivation – including Maslow or Herzberg

■ Marketing – the marketing mix

■ Change management – Lewin

■ Recruitment

P4

BPP

■ Information systems, perhaps involving the introduction of a new HR information system or a marketing database

■ Quality and customer service

■ Motivation theory

■ Recruitment and appraisal

■ Value chain

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P5

BPP

■ Corporate governance and ethics

■ The role/skills/functions of a project manager

■ Time management or disciplinary situations

■ Strategy formulation processes

■ Project management question incorporating a diagrammatic technique such as critical path analysis or Gantt chart

■ Management styles

P5

First Intuition

■ Setting objectives

■ Position audit

■ Decision-making models

■ Culture

■ Project management

■ Networks

■ Functions of a manager

■ Negotiation

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P6

BPP

Section a

■ Performance of the organisation – requiring ratio analysis and incisive comment

■ Strategic option for organisations, ie the ‘suitable/feasible/acceptable’ approaches

Section b

■ The impact of IT on an organisation and how to derive an effective IT/IM/IS strategy

■ Stakeholder analysis

■ Performance evaluation (the ‘usefulness’ of the balanced scorecard rather than just application)

■ Value chain and benchmarking

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P7

BPP

■ Preparation of an extract from the cash flow statement

■ Treatment of non-current assets

■ Explanation/preparation of the IAS 8 disclosure requirements

■ IAS 10, IAS 24, IAS 37 and IFRS 5

■ Calculation of income tax and deferred tax amounts

■ International taxes

■ Preparation of cash flow forecasts

■ Cash management models, such as Baumol and Miller-Orr

■ Yield to maturity calculations

■ Preparation of an income statement, balance sheet and statement of changes in equity

P7

First Intuition

■ Preparation of balance sheet and income statement from a TB

■ Deferred tax

■ Cash flow forecast

■ Non-current assets

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P8

First Intuition

■ Group balance sheet with associate or a disposal

■ Interpretation of a balance sheet and income statement

■ Pension fund accounting

■ Financial instruments

P8

BPP

Section a

■ Inflation

■ Segment definition

■ Financial instruments

■ Pensions

■ Earnings per share

■ Revenue recognition/substance over form

■ Ratio definitions

■ Groups issues

Section b

■ Short consolidated income statement, balance sheet or statement of changes in equity

■ Recognition, measurement and/or classification of financial instruments

■ Pensions accounting

■ Revenue recognition and/or substance over form scenarios

■ Human resource or environmental accounting (written)

Section c

■ Group financial statements, e.g. complex group or foreign subsidiary balance sheet and/or income statement

■ Ratio calculations

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P9

BPP

■ Post-merger valuation to assess a takeover bid

■ Sources of finance

■ Investment decisions

■ Risk analysis

■ Forecasting

■ Post-merger value enhancement strategies

■ Working capital funding strategies

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Kshitij Mathur