Course Overview

Covering a range of subjects including descriptive statistics, correlation and regression and probability, this CIMA paper in the Fundamentals Business Mathematics is part of the qualification to become a member of the Chartered Institute of Management Accountants (CIMA).

This internationally recognised and respected body offers one of the most highly-regarded qualifications available in the field of accountancy.

Pre-requisites

A 'Flexible Entry' policy is in place, meaning that there are no minimum entry requirements, but students will need a good standard of maths and be competent in the English Language.

Qualification

CIMA Paper 3: Fundamentals of Business Mathematics

Support and Benefits

• Gain an internationally recognised qualification to enhance your career opportunities
• CIMA approved study materials including exam practice questions
• Access to a dedicated tutor and student advisors to guide you through your studies

Key Topics

• Fundamental Mathematics

Understand the order of operations in formulae. Practise two-variable simultaneous equations and quadratic equations. Calculate percentages and proportions. Draw graphs of linear and quadratic equations.

• Summarising and Analysing Data

Understand the difference between data and information. Examine the concept of frequency distribution. Learn how to tabulate data. Consider Pareto analysis. Revise how to calculate the following for both ungrouped and groups data: arithmetic mean, median, mode, range, variance, standard deviation and coefficient of variation. Consider the function of indices, and learn how to calculate indices.

• Financial Mathematics

Discover how to calculate future values of an investment. Examine geometric progressions. Learn how to calculate the present value of a future cash sum, as well as the present value of an annuity and a perpetuity, using formula and CIMA tables. Study loans and mortgages. Practise calculating the net present value (NPV) and internal rate of return (IRR) of a project.

• Inter-relationships between Variables

Learn how to prepare scatter diagrams and how to calculate the correlation coefficient and the coefficient of determination between two variables. Discover how to calculate the regression equation between two variables, as well as how to apply the regression equation to predict the dependent variables, given a value of the independent variable.

• Forecasting

Learn how to prepare a time series graph, as well as how to identify patterns and trends using an appropriate moving average, and how to identify the components of a time series model. Discover how to calculate seasonal factors for both additive and multiplicative models. Gain the skills to calculate predicted values given a time series model. Understand the limitations of forecasting models.

• Probability

Learn how to conduct probability calculations. Understand the use of expected value tables in decision-making, and consider the limitations of expected values. Explore the concepts of risk and uncertainty. Discover how to prepare graphs and diagrams of normal distribution.

• Spreadsheets

Examine the features and functions of spreadsheet software, and consider both their uses and limitations in business. Discover how to apply spreadsheet software to the normal work of a Chartered Management Accountant.

Course Code

M05

Hours of Study

130 hours per paper

Technical requirements and Fees

CIMA registration and exam fees are additional to the course fees

Outline

You’ll complete three formative assessments (set by ICS) during your course and one final exam (set by CIMA) on completion of your course. The formative assessments can be submitted to ICS online via the Student Community, or they can be posted to ICS. It is recommended that you submit your formative assessments online as you will receive your results more quickly this way

Assessment Breakdown

• Formative Assessment 1: 25 multiple choice questions and 3 scenario-based questions
• Formative Assessment 2: 25 multiple choice questions and 3 scenario-based questions
• Formative Assessment 3: a mock exam
• Final Exam: a computer-based exam consisting of 50 questions which must be completed within 2 hours

Notes

Each multiple choice question comes with four potential answers. Only one of these answers is correct; the other three are wrong. You must identify the correct answer.

Scenario-based questions test that you can apply the knowledge you have learnt from the course to hypothetical scenarios. These questions are typically multi-part.

The exam is available all year round and can be sat at your local testing centre.

Please note that you are required to register with CIMA in order to sit the exam.

Please note that the format of the exam is subject to change. The details provided are intended only as a guide and should not be regarded as definitive.