Absorption Costing, Activity-based Costing and Marginal Costing

In Absorption Costing, Activity-based Costing and Marginal Costing, we we learn to: Discuss the possible conflicts between cost accounting for profit reporting and inventory valuation and the information for decision-making. This is still part of "Pricing and Product Decision"! 1) Allocation and Apportionment *Note: the first stage of analysis of Overheads is to determine the overhead cost for each cost centres. Cost Allocation -  this...

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P2 Performance Management Syllabus

Paper P2 continues the analytic theme of Paper P1 Performance Operations (for example in terms of identifying relevant costs). However, its main focus is on the application of information in the management processes of decision-making and control, from a performance optimising perspective. The first section covers the key contributors to operational performance – revenue; decisions of what to produce, at what price. The second section covers costs;...

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How To Pass P2 Performance Management?

CIMA P2 Performance Management is a continuation of the analytic theme of P1 (Performance Operations). However, P2 will focus more on the application of information in the management processes of decision-making and control. The first section of P2 covers mainly the key contributors to operation performance (i.e., revenue; decisions of what to produce, at what price). The second section covers costs (i.e., how to manage them to maximise profitability). So,...

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Relevant Cost and Short Term Decisions

In Relevant Cost and Short Term Decisions, there are three learning outcomes we can get from this discussion: Discuss the principles of decision making including the identification of relevant cash flows and their use alongside non-quantifiable factors in making rounded judgement. Explain why joint costs must be allocated to final products for financial reporting purposes, but why this is unhelpful when decisions concerning process and product viability...

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Free P2 Performance Management Resources

If you are really into studying CIMA, of course, you are much willing to buy all the study materials available that will aid in passing the exam. But, it is no joke to purchase those big textbooks and carry them whenever you want to read them. Just imagine - one Kaplan textbook costs around £35, excluding delivery. So what I did -- I did a widely search online of any free study materials that I can use in preparation for the P2 Performance Management...

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5 Reason Why I Study CIMA

The good thing about being an accountant - we have choices on what we want to specialize in. We can choose to be an external/internal auditor, an investment professional, an insurance agent, an accounting professor, or simply as a simple accountant. In my case, I never thought I will be specializing in Management Accountant. Before I decided to take CIMA, I already had CPA under my belt but my experience comprises mainly of 5 solid years of...

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CIMA Certificate | The CIMA Examiner’s Guides to the Certificate Exams

The following guides will help you gain an understanding of what is required to succeed in the certificate level exams. Each paper assesses a different fundamental area of management accounting and as such requires a slightly different approach. Check them out below… C01 fundamentals of management accounting C02 fundamentals of financial accounting C03 fundamentals of business mathematics C04 fundamentals of business economics C05 fundamentals of ethics, corporate governance and business ...

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