CIMA C1

Fundamentals of Management Accounting

CIMA C1
Weekly Quiz
Week 1 to 4

Quiz
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 & NonProduction 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 As?
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
Direct
Production
Costs
Direct Materials
Direct Labour
Direct
Expenses

Indirect
Production
Costs

Production
Cost
Centre

Allocate
Directly:

Allocate
Apportion

Service
Cost
Centre

Re-Apportion
Absorption
Full Absorption Cost
Per Unit

OAR = Budgeted O/H

B Level of
Activity

Quiz
In order to re-apportion Service Centre
Costs to Production Cost Centres, 2
methods are required in your syllabus, what
are they?
What golden rules do you need to follow
with Service to Production reapportionment?
Answer: Service to Service, reciprocal if
necessary, then Service to Production.

Quiz
Absorption rates are NOT based on Actual
or budgeted Overhead Costs?
Why are BOAR rates set in advance?
What is the OAR Formula?
What 3 methods attach themselves to the
Budgeted Level of Activity
OAR Rates can be broken into 2 categories,
what are they?
Answer: Blanket or Departmental

Quiz
Because BOARs are based on estimates,
what is the issue that could occur at the end
of the accounting period?
What is OVER Absorption?
What is UNDER Absorption?
You have been taught a 3 Box layout to
measure Under/Over Absorption, write out
the pro-forma layout

Quiz
Define what job costing is
What records are kept to keep track of job
costs?
What is batch costing?
How do you calculate the cost per unit
under batch costing?
What is pricing?
What are the TWO likely pricing methods
you have to use in CIMA C1?

Quiz
What is Mark-up based on?
What is Margin based on?
What is Marginal costing?, what happens
to Overhead Costs?
Write out the template for Absorption
Costing
Write out the template for Marginal Costing
What is Contribution?
What is deducted from Contribution to get
Net Profit?

Quiz
IF Sales & Production quantities differ, the
profits WILL DIFFER True or False?
Write out a diagram showing what happens
when Opening & Closing Stock differ or
remain the same. These are KEY rules &
need to be learned.

Absorption & Marginal

Costing:

If Op Stock > Close Stock

MC Profit > AC Profit

If Op Stock = Close Stock

MC Profit = AC Profit

If Op Stock < Close Stock

MC Profit < AC Profit

These are KEY Rules: remember them

Quiz
Process Costing has 2 Main features, what
are they?
In out T account, what is on the Debit &
Credit sides?
What is a NORMAL LOSS?
What is an ABNORMAL LOSS?
What is an ABNORMAL GAIN?
How do you calculate the Cost per Unit of
good output?