This website uses cookies to ensure you have the best experience. Learn more

Cima Essay

3456 words - 14 pages

CIMA Gateway Assessments Post Exam Guide May 2012 General Comments The paper was reasonably well attempted by some candidates, the A1 candidates achieving the best average mark overall. However, the performance of many candidates was quite poor. It is advised that candidates familiarise themselves with the content of the syllabus and ensure that they acquire the relevant study materials. They should also ensure that adequate time is spent in preparation for the examination. It was evident from the marking process that many candidates were ill prepared for the examination. SECTION A – 75 MARKS ANSWER ALL THREE QUESTIONS

Question 1

(a) Prepare a statement showing the difference in ...view middle of the document...

Suggested Approach Part (a) requires candidates firstly to calculate average inventory under the current system and then production costs under both the current and proposed systems. Parts (b)(i) and(ii) are straightforward learning curve calculations which feed into the contribution statement in part (iii). Finally, candidates should explain the principle of Kaizen costing, then, using their answer to part (iii), show how RTY may use this principle to increase contribution.

© The Chartered Institute of Management Accountants 2012

Page 1

CIMA Gateway Assessments Post Exam Guide May 2012

Marking Guide (a) Calculation of average inventory Calculation of turnover or statement that it is irrelevant Calculation of production costs ($9,045,000) Calculation of inventory holding cost ($80,000) Calculation of JIT production costs: Quarter 1 ($1,540,000) Quarter 2 ($2,440,000) Quarter 3 ($2,736,000) Quarter 4 ($2,554,000) Comparison of profits (b) (i) Calculation of average labour cost ($460,827) (ii) Calculation of total for 7 batches ($3,367,469) Calculation of total for 8 batches ($3,686,616) th Calculation of cost for 8 batch ($319,147) (iii) Calculation of total labour cost ($4,324,910) Calculation of direct material cost ($1,800,000) Calculation of variable overhead cost ($1,200,000) Calculation of sales revenue ($7,500,000) Calculation of contribution ($175,090) (iv) Continuous review of processes Small incremental changes leading to cost savings Employee involvement Size of cost reduction required to achieve target (4%) Conclusion Maximum marks awarded

Marks

2 1 1 1 1 2 2 2 1 (max 10)

2

1 1 1

2 0.5 0.5 1 1

1 1 1 1 1 25

Lead Marker's Comments G1 candidates performed surprisingly poorly in this question which was disappointing. The A1 candidates performed the best, achieving an average mark of just below 50%. Candidates again struggled with applying the learning curve formula as they have with past questions. Candidates also had difficulty with the part inventory calculation and the move to JIT.

© The Chartered Institute of Management Accountants 2012

Page 2

CIMA Gateway Assessments Post Exam Guide May 2012

Question 2 (a) Discuss what will be involved in the initiation stage of the stadium construction project and explain what should be included in the project initiation document. (10 marks) Rationale This question requires candidates to be familiar with what is involved in the initiation stage of a project and then develop to explain what should be included in a project initiation document. It examines learning outcome B1(d) 'Identify the characteristics of each phase in the project process'. Suggested Approach Answers should first discuss what is involved in the initiation stage of a project and then develop to explain what should be included in the project initiation document (PID). Good answers will include reference to aspects of the project outlined in the scenario. Marking Guide What is...

Other Papers Like Cima

Ethics in Business Essay

781 words - 4 pages form of deceit and illegal. In the same way, if the new employer chose to use that information for gain, that too would be considered bad ethics. Recently Hooters of America LLC agreed to an out-of-court settlement in its federal lawsuit against former executive Joseph Hummel and Twin Peaks restaurants developer La Cima Restaurants LLC. In its suit filed in fall 2011, Atlanta-based Hooters alleged La Cima was a direct competitor and it violated

Compreender O Simplex Essay

766 words - 4 pages segunda linha toda por -1/2 para pôr o elemento 2 igual a 1. Mau, e os outros que têm de estar iguais a zero, como é? -Qual é o número que multiplicado por 2 mais 1 dá zero? Vem: 2X+1=0 ↔ X=-1/2 - Qual é o número que multiplicado por 2 mais -2 dá zero? É fazer a mesma coisa como fiz em cima. E o acontece aos outros números ? - Multiplica-se o número que achámos à bocado por cada elemento das linha do -2 e soma-se a cada elemento da linha

Analysis

3971 words - 16 pages Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical

Asmt for Cost Accounting

1355 words - 6 pages Question 1 In this case the managerial accountant is faced with an ethical dilemma. It involves integrity and objectivity. The managerial accountant cannot request an immediate meeting with the Board of Directors. The appropriate way to deal with this problem is presenting the situation to the next higher managerial level firstly. According to CIMA code of ethics for professional accountants, a distinguish mark of the accountancy

Management

5501 words - 23 pages management of XYZ Working capital is defined as the capital available for conducting day to day operations of an organisation; normally the excess of current assets over current liabilities (CIMA, 2013). According to IAS current assets are defined as the assets that are expected to be realised in the entity's normal operating cycle, held primarily for the purpose of trading, expected to be realised within 12 months after the reporting period and

Business Strategy

1619 words - 7 pages the critical success factors (CSFs) and this does not exclude the coffee outlet. Rockart & Hoffman (1992) defined CSFs as ‘the limited number of areas in which results, if they are satisfactory, will enable successful competitive performance’. Moreover, the CIMA Official Terminology (2005) suggested that ‘critical success factors may change over time, and may include items such as product quality, employee attitudes, manufacturing flexibility

Beaformativegroup

668 words - 3 pages companies, inflation and creative accounting or earnings management practices may distort accounting information, etc. ─ Watson and Head, 2007); * Recommendations to an Identified User of Accounting Information. VI. Appendix (include all financial statements and accounting and financial ratios formulas). VII. References (a proper list of all references used including papers in academic journals, books, electronic sources, etc.) References for this document; Gowthorpe, C. (2007) Financial Analysis, Elsevier: CIMA Publishing Watosn, D. and Head, a. (2007), Corporate Finance: Principles and Practice: Financial Times/Prentice Hall.

Situacion Africa

517 words - 3 pages Contexto: Inglaterra se encontraba en la cima de su poder colonial. La reina Victoria, dejo una época de esplendor, con un gran despliegue de poder político y prosperidad económica. Su largo reinado (1837-1901) también se destaca por su rigidez cultural. En el interior del país las diferencias entre ricos y pobres se acentuaron mucho, lo que preparó el terreno a la ideología de la lucha de clases. Por otro lado, la teoría del darwinismo social

Accounting Repsonabity

542 words - 3 pages broken by accountants. This article goes in depth about the regulations and how they are enforced and lwas that have been broken by ceratin accountants. 5. Holt, M. F. (2008). The Sarbanes-Oxley Act : Costs, Benefits and Business Impact. Amsterdam: CIMA This article discuss the benefits of following the regulations of the Oxley Act of 2002. 6. Ford, C. (2014). FOR WHOM THE STATUTE TOLLS: AMERICAN PIPE TOLLING AND STATUTES OF REPOSE IN

Accounting Report

2075 words - 9 pages accountancy body in Ireland with over than 21,000 members internationally. 3. Institute of Chartered Accountants of Scotland (ICAS) The Institute of Chartered Accountants of Scotland (ICAS) is the Scottish professional body of Chartered Accountants. 4. Chartered Institute of Management Accountants (CIMA) The Chartered Institute of Management Accountants (CIMA) is a UK-based professional body offering training and qualification in

Solucion a Problemas de Reclamos

1063 words - 5 pages (complicación) Tipo de Reclamo (complicación) (-) (-) ESCENARIO I ESCENARIO I ESCENARIO II ESCENARIO II En busca del Tesoro escondido. En busca del Tesoro escondido. En la Cima En la Cima Tiempo de Respuesta Tiempo de Respuesta (-) (-) (+) (+) ESCENARIO IV ESCENARIO IV ESCENARIO III ESCENARIO III El Jardinero Fiel El Jardinero Fiel ARMAGEDON ARMAGEDON (+) (+) Escenario I: Este es un escenario donde

Related Essays

Cima Verbs Essay

3514 words - 15 pages question in the exam. In addition, the learning outcomes set an upper limit in the skill level for that area of the syllabus. Let me explain… Every learning outcome uses a verb, or verbs, from the approved hierarchy published with the syllabus (see Figure 1). This hierarchy gives a brief definition for each verb, but also ranks it in one of five CIMA February 2010 1 levels. Although the hierarchy is upside-down, it’s fairly obvious

Cima Case Analysis 2012

3576 words - 15 pages [pic] FVYP (x) = ethics3 + strategy2 +operation1 | Content | 1. Introduction··········································································3 2. Prioritization of key issues ····················································· 3 3. Comprehensive analysis

Management Essay

521 words - 3 pages IBA Business Case Competition 5 Organizer: IBACC (IBA) Round One Round Two Round Three Online Submission Case On-spot Presentation Case solving CIMA Global Business Challenge 6 Organizer: CIMA Bangladesh Team Members Rounds Prize 4 2 Trip to grand finale* *You’ll represent BD in the international CIMA Global Business Challenge CIMA Global Business Challenge 6

Fraud And Money Laundering Essay

3966 words - 16 pages institutions and businesses may be involved in fraud and money laundering. It is therefore crucial that CIMA members, whether in practice or in business, are fully aware of this possibility and are alert to the signs of money laundering which can affect their business. Examination candidates should be aware of the risks involved, especially at strategic and TOPCIMA level. They should ensure that they know the signs of possible money laundering and the