DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

G1 - CIMA Management Accountant Gateway Assessment 20 November 2012 Tuesday Afternoon Session
Instructions to candidates
You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and, if you wish, highlight and/or make notes on the question paper. However, you are not allowed, under any circumstances, to open the answer book and start writing or use your calculator during this reading time. You are strongly advised to carefully read ALL the question requirements before attempting the question concerned (that is, all parts and/or subquestions). The question requirements for Section A are highlighted in a dotted box. ALL answers must be written in the answer book. Answers or notes written on the question paper will not be submitted for marking. You should show all workings as marks are available for the method you use. ALL QUESTIONS ARE COMPULSORY. Section A comprises three questions on pages 2 to 7. Section B comprises one question containing 12 objective test sub-questions on pages 8 to 12. Maths tables and formulae are provided on pages 13 to 15. These are detachable for ease of reference. The list of verbs as published in the syllabus is given for reference on page 19. Write your candidate number, the paper number and the examination subject title in the spaces provided on the front of the examination answer book. Also write your contact ID and name in the space provided in the right hand margin and seal to close. Tick the appropriate boxes on the front of the answer book to indicate which questions you have answered.

The Chartered Institute of Management Accountants 2012

G1 - CIMA Management Accountant Gateway Assessment

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SECTION A 75 MARKS
[You are advised to spend no longer than 45 minutes on each question in this section]

ANSWER ALL THREE QUESTIONS

Question One M Company manufactures and assembles a range of components for sale to other manufacturers. The company operates in a constantly changing market and has to introduce new components regularly as older components are no longer produced. The market in which M Company operates has a number of competitors producing similar items and therefore the company has always concentrated on being as efficient as possible, in particular with the control of costs. To this end, M Company has for many years used Activity Based Costing. In order to decide whether or not to produce a new component, M Company uses a target cost approach.

Required (a) Explain what is meant by 'target cost approach' and what relationship it has, if any,
with life cycle costing. (6 marks)

M Company is considering the production of a new component, X1. The following information is available. The cost pools and cost drivers used by M Company for all its components are as follows: Cost pool Machining Assembly Set up costs Order processing Stores and purchasing The data for X1 are as follows: Due to the constantly changing market, M Company is looking only at the next year, when it is expected that 40,000 units of X1 will be produced and sold. The target selling price for X1 is to be $40 per unit. M Company expects a 15% margin on sales on all of its products. Each unit of X1 is expected to require $10 of direct materials and to need two machine hours to produce. During the year the production of 40,000 units of X1 will require: Number of set ups Number of orders to be processed Number of requisitions to be raised 10 6,000 2,500 $ 1,064,000 580,000 120,000 84,000 156,960 Cost driver Machine hours Direct labour hours Set ups Customer orders Requisitions raised 380,000 725,000 60 24,000 18,000

M Company has a very experienced labour force and expects there to be an 80% learning curve in the assembly of X1. The number of direct labour hours for the first unit will be 8 hours and a steady state of labour hours for production will be reached at 474 units, after which each unit will require the same average number of direct labour hours.

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The direct labour cost per hour in assembly is $12 per hour. The 80% learning index is -0.322 The calculation for the steady state direct labour hours of assembly per unit of X1 should be taken to one decimal point.

Required (b)
. Calculate the estimated cost per unit of producing X1 at the steady state of production and advise M Company as to whether it should proceed with its production. (15 marks)

(c)

Discuss TWO possible problems/limitations with M Company's use of the target cost approach in the above scenario. (4 marks) (Total for Question One = 25 marks)

Section A continues on page 4

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Question Two TP Company has invested in the development of a new customer relationship information system which will improve customer ordering and invoicing and provide better customer information. It will also enable the company to track trends in customer behaviour. However, the project which was set up to design, develop and deliver the new customer relationship information system has experienced numerous problems throughout its lifecycle. The project ended up being well over budget and was not ready for launch by the due date. Two months after the new system was installed it is clear that there are major errors within the system. A number of customers have complained that the new system is not user friendly and others say that they have not received the correct orders. In addition, some customers say that they have received incorrect invoices. Even worse, some customers are saying that they will no longer do business with TP Company because of the problems they have encountered with the new system. A meeting, called to discuss the failures of the project, between the project manager, the project team and the project sponsor has ended up with everyone blaming each other. The project team members said they were unclear about their responsibilities and that there was poor communication throughout the project. It is apparent that a project management methodology, which could have helped in identifying and rectifying earlier in the project lifecycle the problems that have now transpired, was not used.

Required: (a)
Explain to TP Company how a project management methodology, such as PRINCE2, could have helped to prevent the failures of the customer relationship information system project. (15 marks)

(b)

Discuss how each of the two project management techniques, work breakdown structure and Gantt charts, could have been used to help communication in the customer relationship system project. (10 marks) (Total for Question Two = 25 marks)

Section A continues on page 6

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Question Three
JKL, a listed entity, made investments in three entities, AB, CD and EF, during the financial year to 31 December 2011. The summarised statements of financial position for JKL, AB and CD as at 31 December 2011 are provided below: ASSETS Non-current assets Property, plant and equipment Investments Current assets Total assets EQUITY AND LIABILITIES Equity Share capital ($1 ordinary shares) Share premium Revaluation reserve Retained earnings Liabilities Non-current liabilities Current liabilities Total liabilities Total equity and liabilities JKL $000 90,200 23,400 113,600 9,000 122,600 AB $000 24,000 24,000 4,200 28,200 CD $000 13,100 13,100 3,300 16,400

50,000 10,000 12,000 24,600 96,600 18,000 8,000 26,000 122,600

10,000 2,000 10,800 22,800 2,000 3,400 5,400 28,200

5,000 1,000 7,600 13,600 2,800 2,800 16,400

1.

JKL acquired 8 million of the $1 ordinary shares of AB on 1 January 2011 for $17.3 million. The investment is carried at cost in the financial statements of JKL. At the date of acquisition, AB had retained earnings of $8.2 million and a balance on revaluation reserve of $2 million. The fair value of the net assets acquired was the same as their carrying value at the date of acquisition. The non-controlling interest was valued at fair value at the date of acquisition. The fair value of the non-controlling interest at 1 January 2011 was $4.1 million.

2.

JKL acquired 40% of the ordinary share capital of CD on 1 July 2011 for $5 million. The investment is carried at cost in the financial statements of JKL. At that date, CD had retained earnings of $6.2 million and a balance on the revaluation reserve of $1 million. JKL made a further investment in EF, a listed entity, at a cost of $1.1 million. The shares acquired amounted to 8% of the ordinary share capital of EF. The investment was not classified as held for trading and is currently carried at cost in the financial statements of JKL. At 31 December 2011 the investment in EF had a market value of $1.3 million. In the year to 31 December 2011, AB sold goods to JKL with a sales value of $1.2 million. 10% of the goods remain in inventories at the year end. AB made a 25% profit margin on all sales to JKL. An impairment review conducted at the year end estimated that goodwill on acquisition of AB was impaired by 10%. There was no evidence of the other investments being impaired. The revaluations are performed every two years by an independent valuer. The past revaluations relate solely to non-depreciable assets.

3.

4.

5.

6.

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Required: (a)
Explain how each of the three investments held by JKL should be classified and accounted for in the consolidated financial statements of JKL for the year to 31 December 2011. (7 marks) Prepare the consolidated statement of financial position of the JKL Group as at 31 December 2011. (18 marks) (Total for Question Three = 25 marks)

(b)

(Total for Section A = 75 marks)

End of Section A Section B starts on page 8

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SECTION B 25 MARKS
[You are advised to spend no longer than 45 minutes on this section]

ANSWER ALL TWELVE QUESTIONS

Instructions for answering Section B:

The answers to the twelve sub-questions in Section B should ALL be written in your answer book. Your answers should be clearly numbered with the sub-question number and ruled off so that the markers know which sub-question you are answering. For multiple choice questions you need only write the sub-question number and the letter of the answer option you have chosen. You do not need to start a new page for each sub-question.

Question Four
4.1 M produces a single product, T, for which the following direct labour budget was set for the period: Budgeted production Direct labour hours Budgeted labour cost The actual results for the period were: Production Direct labour hours Labour cost 4,200 units 23,520 $176,400 4,000 units 20,000 $160,000

During the period, the manager of M realised that, due to a planning error, the original standard cost that was set was unrealistic and therefore unacceptable for cost control. The revised standard to be used for analysis purposes is: 5.5 direct labour hours per unit of T Labour cost per hour $7.80 What was the total planning variance for the period? A B C D $8,400 adverse $12,180 adverse $16,400 adverse $19,360 adverse (2 marks)

Section B continues on the opposite page

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4.2

A is divided into divisions and each division is a cost centre. In the Machining Division, where capacity is limited to 10,000 hours per period, two products are manufactured. The production costs of the two products are as follows: Product A per unit 40 20 60 3,000 units Product B per unit 25 16 41 3,000 units

Variable costs Fixed costs

Period demand

Fixed costs are absorbed at 8 per machine hour. Each of the products can be bought in from external suppliers to meet any excess demand; Product A can be bought for 71 per unit and Product B for 48 per unit. What is the minimum total cost (divisional production costs plus any external purchase costs) the manager of the Machining Division must incur to meet the total demand for both products? A B C D 312,750 315,250 318,400 320,500 (2 marks) 4.3 D is a very large manufacturing company which has six divisions. Each division is based on a geographical area of the country in which D operates and most of the divisions supply and receive components to/from each other. Like many other companies, D has always used a cost-based approach to transfer pricing between divisions within the company. The following explanations are often given as to why cost-based approaches to transfer pricing are used. (i) (ii) (iii) (iv) Because the receiving division wishes to maximise its profits Because the external market is imperfect Because there is no external market for the component being transferred Because the transferring division wants to maximise profits

Which of the above is/are correct? A B C D (i) only (ii), (iii) and (iv) (ii) and (iii) (i) and (iv) (2 marks)

Section B continues on page 10

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4.4

Q is due to launch a new product into the market but is undecided about which pricing strategy to use. When is market penetration pricing appropriate? (i) (ii) (iii) (iv) If demand is inelastic If there are significant economies of scale to be achieved If the firm wishes to discourage new entrants from entering the market If the product has a short life cycle

A B C D

(ii) and (iii) (i) and (iv) (iii) only (ii), (iii), and (iv) (2 marks)

4.5

Which ONE of the following, according to Herzberg's motivation theory, is NOT an example of a hygiene factor? Policies and procedures for staff treatment Pleasant physical and working conditions Recognition of good work Appropriate level of salary and status for the job (2 marks)

A B C D

4.6

Which ONE of the following approaches to managing stakeholders is recommended if the stakeholder has a high level of interest but a low level of power? Participation Education/communication Intervention Direction (2 marks)

A B C D

4.7

Describe the TWO main ways in which an organisation can generate superior competitive performance and gain competitive advantage. (2 marks)

4.8

Identify THREE of the fundamental principles underlying CIMA's guidelines on professional ethics. (3 marks)

Section B continues on the opposite page

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4.9

AB granted 1,000 share options to its 300 employees on 1 January 2011. To be eligible, employees must remain employed for three years from the date of issue and the rights must be exercised in January 2014. In the year to 31 December 2011, 32 staff left and a further 35 were expected to leave over the following two years. The fair value of the share options at 1 January 2011 was $8. The accounting entry to record the expense associated with the share options (to the nearest $), for the year to 31 December 2011, in accordance with IFRS 2 Share-based Payment is to:

A B C D

debit staff costs $1,864,000 and credit other reserves (within equity) $1,864,000. debit staff costs $1,864,000 and credit liabilities $1,864,000. debit staff costs $621,333 and credit other reserves (within equity) $621,333. debit staff costs $621,333 and credit liabilities $621,333. (2 marks)

4.10 NM acquired an equity investment in another entity and classified it immediately as held for trading. The investment cost $880,000 on 1 May 2011 and at its following year end NM had recognised a gain of $6,800 on the investment. NM pays 2% commission to its broker on all transactions. The value of this investment will be included in NM's statement of financial position at: A B C D $886,800 $904,400 $904,536 $912,560 (2 marks) 4.11 GHJ operates a defined benefit pension plan for its employees. At 1 July 2011 the present value of the plan liabilities was $1,400,000. The interest cost on the plan liabilities was estimated at 7%. The actuary estimates that the current service cost for the year ended 30 June 2012 is $300,000. GHJ made contributions into the pension plan of $400,000 in the year. The pension plan paid $220,000 to retired members in the year to 30 June 2012. At 30 June 2012 the present value of the plan liabilities was $1,600,000. GHJ recognises actuarial gains and losses in other comprehensive income in the period in which they occur. The actuarial gain or loss on the pension liabilities that GHJ will recognise in other comprehensive income for the year ended 30 June 2012 is: A B C D gain of $198,000 gain of $22,000 loss of $8,000 loss of $22,000 (2 marks)

Section B continues on page 12

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November 2012 11 Management Accountant Gateway

4.12 ABC issued 6% debentures on 1 January 2010 at their par value of $3 million. Issue costs were $200,000. The interest on the debentures is paid annually in arrears. The debentures will be redeemed in 4 years' time at a premium of $400,000. The effective interest rate in respect of these debentures is approximately 11%. The debentures will be included in the statement of financial position of ABC at 31 December 2011 at a value of: A B C D $2,928,000 $2,940,000 $3,070,080 $3,150,000 (2 marks)

Total for Section B = 25 marks)

End of Question Paper

Reminder All answers to Section B must be written in your answer book. Answers to Section B written on the question paper will not be submitted for marking Maths tables and formulae are on pages 13 -15 which are detachable for ease of reference

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Maths Tables and Formulae

Present value of $1, that is (1+ r ) payment or receipt.
Periods (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Periods (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554

Present Value Table

where r = interest rate; n = number of periods until

4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456

Interest rates (r) 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.458 0.394 0.436 0.371 0.416 0.350 0.396 0.331 0.377 0.312 Interest rates (r) 15% 16% 0.870 0.862 0.756 0.743 0.658 0.641 0.572 0.552 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.215 0.195 0.187 0.168 0.163 0.145 0.141 0.125 0.123 0.108 0.107 0.093 0.093 0.080 0.081 0.069 0.070 0.060 0.061 0.051

7% 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 0.258

8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215

9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.388 0.356 0.326 0.299 0.275 0.252 0.231 0.212 0.194 0.178

10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149

11% 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0.434 0.391 0.352 0.317 0.286 0.258 0.232 0.209 0.188 0.170 0.153 0.138 0.124

12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104

13% 0.885 0.783 0.693 0.613 0.543 0.480 0.425 0.376 0.333 0.295 0.261 0.231 0.204 0.181 0.160 0.141 0.125 0.111 0.098 0.087

14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073

17% 0.855 0.731 0.624 0.534 0.456 0.390 0.333 0.285 0.243 0.208 0.178 0.152 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.043

18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.071 0.060 0.051 0.043 0.037

19% 0.840 0.706 0.593 0.499 0.419 0.352 0.296 0.249 0.209 0.176 0.148 0.124 0.104 0.088 0.079 0.062 0.052 0.044 0.037 0.031

20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026

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Cumulative present value of $1 per annum, Receivable or Payable at the end of each year for n years
1 (1+ r ) n r

Periods (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Periods (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.046

2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12.106 12.849 13.578 14.292 14.992 15.679 16.351

3% 0.971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.878

4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590

Interest rates (r) 5% 6% 0.952 0.943 1.859 1.833 2.723 2.673 3.546 3.465 4.329 4.212 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 4.917 5.582 6.210 6.802 7.360 7.887 8.384 8.853 9.295 9.712 10.106 10.477 10.828 11.158 11.470

7% 0.935 1.808 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 7.499 7.943 8.358 8.745 9.108 9.447 9.763 10.059 10.336 10.594

8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818

9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129

10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514

11% 0.901 1.713 2.444 3.102 3.696 4.231 4.712 5.146 5.537 5.889 6.207 6.492 6.750 6.982 7.191 7.379 7.549 7.702 7.839 7.963

12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7.250 7.366 7.469

13% 0.885 1.668 2.361 2.974 3.517 3.998 4.423 4.799 5.132 5.426 5.687 5.918 6.122 6.302 6.462 6.604 6.729 6.840 6.938 7.025

14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623

Interest rates (r) 15% 16% 0.870 0.862 1.626 1.605 2.283 2.246 2.855 2.798 3.352 3.274 3.784 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.724 5.847 5.954 6.047 6.128 6.198 6.259 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 5.929

17% 0.855 1.585 2.210 2.743 3.199 3.589 3.922 4.207 4.451 4.659 4.836 4.988 5.118 5.229 5.324 5.405 5.475 5.534 5.584 5.628

18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 7.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353

19% 0.840 1.547 2.140 2.639 3.058 3.410 3.706 3.954 4.163 4.339 4.486 4.611 4.715 4.802 4.876 4.938 4.990 5.033 5.070 5.101

20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.843 4.870

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FORMULAE
Annuity

Present value of an annuity of $1 per annum receivable or payable for n years, commencing in one year, discounted at r% per annum:
PV =

1 1 1 r [1 + r ]n

Perpetuity Present value of $1 per annum receivable or payable in perpetuity, commencing in one year, discounted at r% per annum: PV =

1 r

Growing Perpetuity Present value of $1 per annum, receivable or payable, commencing in one year, growing in perpetuity at a constant rate of g% per annum, discounted at r% per annum: PV = Time series Additive model: Series = Trend + Seasonal + Random Multiplicative model: Series = Trend*Seasonal*Random Regression analysis The linear regression equation of Y on X is given by: Y = a + bX where: b= and or solve
Covariance ( XY ) Variance ( X )

1 r g

or Y Y = b(X X ), =
n XY ( X )( Y ) n X ( X )
2 2

a= Y bX

Y = na + b X XY = a X + b X2
Exponential Geometric Learning curve Yx = aX
b

Y = ab b Y = aX

where: Yx = the cumulative average time per unit to produce X units; a = the time required to produce the first unit of output; X = the cumulative number of units; b = the index of learning. The exponent b is defined as the log of the learning curve improvement rate divided by log 2.

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LIST OF VERBS USED IN THE QUESTION REQUIREMENTS

A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for each question in this paper. It is important that you answer the question according to the definition of the verb. LEARNING OBJECTIVE
Level 1 - KNOWLEDGE What you are expected to know.

VERBS USED
List State Define

DEFINITION
Make a list of Express, fully or clearly, the details of/facts of Give the exact meaning of

Level 2 - COMPREHENSION What you are expected to understand.

Describe Distinguish Explain Identify Illustrate

Communicate the key features Highlight the differences between Make clear or intelligible/State the meaning or purpose of Recognise, establish or select after consideration Use an example to describe or explain something

Level 3 - APPLICATION How you are expected to apply your knowledge.

Apply Calculate Demonstrate Prepare Reconcile Solve Tabulate

Put to practical use Ascertain or reckon mathematically Prove with certainty or to exhibit by practical means Make or get ready for use Make or prove consistent/compatible Find an answer to Arrange in a table

Level 4 - ANALYSIS How you are expected to analyse the detail of what you have learned.

Analyse Categorise Compare and contrast Construct Discuss Interpret Prioritise Produce

Examine in detail the structure of Place into a defined class or division Show the similarities and/or differences between Build up or compile Examine in detail by argument Translate into intelligible or familiar terms Place in order of priority or sequence for action Create or bring into existence

Level 5 - EVALUATION How you are expected to use your learning to evaluate, make decisions or recommendations.

Advise Evaluate Recommend

Counsel, inform or notify Appraise or assess the value of Advise on a course of action

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CIMA Management Accountant Gateway Assessment

November 2012

Tuesday Afternoon Session

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