Course Overview

Examining everything from the basics of cost accounting to budgetary planning and control, CIMA C1 paper The Fundamentals of Management Accounting 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 1: Fundamentals of Management Accounting

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

• Cost Determination

Examine the idea of ‘cost objects’, as well as the concepts of direct cost and indirect cost. Study first-in-first-out (FIFO), last-in-first-out (LIFO) and average cost (AVCO) methods of accounting for stock and calculating stock values and related gross profit. Learn how to calculate direct, variable and full costs of products, services and activities. Consider the use of cost information in pricing decisions.

• Cost Behaviour and Break-even Analysis

Examine the fixed and variable elements of cost using both the high-low method and the ‘line of best fit’ method. Learn how to prepare break-even charts and profit/volume graphs. Discover how to determine the profit-maximising sales mix for multi-product companies.

• Standard Costing

Learn how to prepare ‘standard costs’ for the material, labour and variable overhead elements of cost in a product or service. Examine the reconciling of actual contribution with budgeted contribution.

• Costing and Accounting Systems

Examine the principles of production accounts and the integration of the cost accounts with the financial accounting system. Examine job costing, batch costing and contract costing. Consider process costing and specific order costing. Study both subjective and objective classifications of expenditure, and consider the importance of tracing costs both to products/services and to responsibility centres.

• Financial Planning and Control

Consider why organisations set out financial plans in the form of budgets, and learn how to prepare functional budgets. Discover how to prepare a ‘master budget’ based on functional budgets. Gain the skills to interpret budget statements and so advise managers on financing projected cash shortfalls and/or investing projected cash surpluses. Examine fixed and flexible budgets.

Course Code

M02

Hours of study

12 month / 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: 20 multiple choice questions and 4 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.