CIMA C1Fundamentals of Management Accounting

CIMA C1Weekly QuizWeek 1 & 2

What are the main 4 reasons a company will calculate a cost value for its products?

Write down 4 major differences between Financial accounting & Management accounting

Managers in a business carry out 3 main activities, what are they?

Draw a diagram to illustrate the 3 main Levels of Management in a typical Company

Quiz

Draw a ‘typical’ Company organisation chart showing a range of different functions or disciplines

What is a Cost Unit? There are 3 main Cost Classifications, What

are they? With examples, describe the Direct &

Indirect Cost Classifications With examples, describe Production & Non-

Production Cost categories

Quiz

Last week we looked at a ‘cost structure/classification’ chart, draw it out

In Cost behaviour studies, there are often said to be 4 types of cost behaviour pattern, what are they? & sketch the appropriate graph for each.

What is the ‘Level of Activity’ a measure of? Give some examples of Semi-Variable Costs

Quiz

If you are given Total Costs for “ Levels of Activity’’, what method can you use to ‘split’ variable from fixed Costs?

Write out the ‘High/Low’ method, what is the grid you would use?

What adjustments might you make to the Total Costs for ‘Step Costs’ & ‘Bulk Discounts’, do you subtract Step Costs & add Bulk Discounts?: True or False?

Quiz

What is a: Cost centre? Revenue Centre? Profit Centre? Investment Centre? How do you measure Performance in an

Investment centre? What is the R.O.C.E. formula?

Quiz

What is an Overhead? What are the three ‘A’s? What is ‘Allocation’ of Overheads? What is ‘Apportionment’ of Overheads? What is re-Apportionment of Overheads? What is ‘Absorption’ of Overheads? Look at the diagram on the next slide & fill

in the areas you know

Quiz

Quiz

Quiz

DirectProduction

Costs

Full Absorption CostPer Unit

IndirectProduction

Costs

ProductionCost

Centre

ServiceCost

Centre

Direct MaterialsDirect LabourDirect Expenses

Allocate Directly:

AllocateApportion

Re-Apportion

Absorption

OAR = Budgeted O/H B Level of Activity