Cima G1 papers

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CIMA G1 Management Accountant Gateway
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What is CIMA?
The Chartered Institute of Management Accountants
(CIMA) is a United Kingdom-based professional
body offering training and qualification in
management accountancy and related subjects,
focused on accounting for business together with
ongoing support for members. CIMA is one of the
professional associations for accountants in
Ireland and the UK. Its particular emphasis is on
developing the management accounting profession
within the UK and worldwide. CIMA is the largest
management accounting body in the world, with
more than 227,000 members and students in 179
countries. CIMA is also a member of the
International Federation of Accountants.
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OPERATIONAL LEVEL
E1 enterprise operations it addresses several
functional areas of business, and introduces
candidates to the economic, social and political
contexts of international business (the global
business environment, information systems,
operations management , marketing, managing human
capital)P1 performance operations this paper
deals with tools and techniques that generate
information needed to evaluate and control
present and projected performance (cost
accounting system, forecasting and budgeting
techniques, project appraisal, dealing with
uncertainty in analysis, managing short-term
financeF1 financial operations this papers
core objectives are preparation of full financial
statements for a single company and the principal
consolidated financial statements for a simple
group (principles of business taxation,
regulation and ethics of financial reporting
financial accounting and reporting
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MANAGEMENT LEVEL
E2 enterprise management paper develops tools
and techniques for identifying key types of
competitive environments (strategic management
and assessing the competitive environment,
project management, management of
relationships)P2 performance management the
main focus of paper P2 is the application of
information in the management processes of
decision making and control to optimize
performance (pricing and product decisions, cost
planning and analysis for competitive advantage,
budgeting and management control, control and
performance measurement of responsibility
centers)F2 financial management extends to
more advanced topics in financial accounting and
to developments in external reporting (group
financial statements, issues in recognition and
measurement, analysis and interpretation of
financial accounts, developments in external
reporting)
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STRATEGIC LEVEL
E3 enterprise strategy this paper requires
application of tools to assist in the evaluation
of the performance implications of a given
strategy (interacting with the competitive
environment, change management, evaluation of
strategic options, implementation of strategic
plans and performance evaluationP3 performance
strategy The paper considers both financial and
non financial risks (management control systems,
risk and internal control, review and audit of
control systems, management of financial risk,
risk and control in information systems)F3
financial strategy deals with key elements in
designing and managing the organisations
financial strategy in the context of
contributing to achieving the organisations
objectives and within its external constraints
(formulation of financial strategy, financing
decisions, investment decisions and project
control)
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CIMA CERTIFICATE IN BUSINESS ACCOUNTING
CO1 fundamentals of management accounting (core
management accounting topics such as cost
determination, breakeven analysis, standard
costing, cost and accounting systems and
financial planning and control),CO2
fundamentals of financial accounting (conceptual
and regulatory frameworks, accounting systems and
control, and preparing accounts for single
entities),CO3 fundamentals of business
mathematics (basic mathematics, probability,
summarizing and analyzing data, variables,
forecasting, financial mathematics and
spreadsheets),CO4 fundamentals of business
economics (goals and decisions of organizations,
the market system and the competitive process,
the financial system and the macroeconomic
context of business),CO5 fundamentals of
ethics, corporate governance and business law
(covers ethics and business, ethical conflict,
corporate governance, comparison of English law
with alternative legal systems, the law of
contract, the law of employment and company
administration and finance
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Management accountant gateway route
CIMA G1 CIMA G1 - Management Accountant Gateway
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Why CIMA?
Most accounting qualifications train people for
private practice, working on external audit and
tax issues. CIMA prepares people for a career in
business. It teaches skills for strategic advice,
managing risk and making key decisions. Our
syllabus is designed to deliver a strong
understanding of all aspects of business so our
members can contribute in many areas of an
organisation.
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What is management accounting?

• Management accounting combines accounting,
  finance and management with the leading edge
  techniques needed to drive successful businesses.
• Chartered management accountants
• Advise managers about the financial implications
  of projects.
• Explain the financial consequences of business
  decisions.
• Formulate business strategy.
• Monitor spending and financial control.
• Conduct internal business audits.
• Explain the impact of the competitive landscape.
• Bring a high level of professionalism and
  integrity to business

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The management accounting skillset

• Our members are qualified to work across an
  organisation, not just in finance. In addition to
  strong accounting fundamentals, CIMA teaches
  strategic business and management skills
• Analysis they analyse information and using it
  to make business decisions.
• Strategy they formulate business strategy to
  create wealth and shareholder value.
• Risk they identify and manage risk.
• Planning they apply accounting techniques to
  plan and budget.
• Communication they determine what information
  management needs and explain the numbers to
  non-financial managers.

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Here are some questions for you All the
questions are 100 accurate and approved
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Question No 1
A company is considering a short-term pricing
decision for a contract that would utilise some
material D that it has held in inventory for some
time. The company does not foresee any other use
for the material. The work would require 1,000
kgs of material D. There are 800 kgs of material
D in inventory, which were bought some time ago
at a cost of 3 per kg. The material held in
inventory could currently be sold for 3.50 per
kg. The current purchase price of material D is
4.50 per kg. The relevant cost of material D for
the company to use when making its pricing
decision for the contract is closest to A.
3,700 B. 3,500 C. 4,500 D. 3,30 Answer C
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Question No 2
In the typical hierarchical organisation, the
requirement for a lower level manager to report
to a higher level manager in the chain of
command is known as A. Authority B.
Empowerment C. Delegation D. Accountability
Answer D
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Question No 3
Decisions about acquisitions and mergers occur at
which ONE of the following levels of strategy?
A. Functional B. Business C. Corporate D.
Competition Answer A
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Question No 4
Identify each of the different team roles as
defined by Belbin for the following? A. Gives
attention to detail and is concerned with meeting
deadlines B. Supports other members of the team
and helps to promote harmony C. Imaginative and
good at coming up with ideas and suggestions
Answer C
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Question No 5
JAC operates a defined benefit pension plan for
its employees. The fair value of the plan assets
at 1 June 2008 was 3,100,000. JAC made
contributions of 300,000 to the plan in the
year to 31 May 2009 and the expected return on
assets has been calculated at 190,000. The
pension plan paid out a total of 225,000 in
benefits in the period and the fair value of the
plan assets at 31 May 2009 was 3,340,000. The
actuarial gain or loss in respect of the pension
plan assets of JACs defined benefit pension
plan for the year ended 31 May 2009 is A.
125,000 loss B. 25,000 loss C. 25,000 gain
D. 125,000 gain Answer D
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Question No 6
MX had 5 million 1 ordinary shares in issue at 1
May 2008. On 30 September 2008 MX issued a
further 2 million 1 ordinary shares at par.
Profit before tax for the year ended 30
Ap ril 2009 was 650,000 and the related income
tax charge was 210,000. The basic
earnings per share of MX for the year to 30 April
2009 is A. 6.9 cents per share B. 7.1 cents per
share C. 10.5 cents per share D. 13.5 cents per
share Answer C
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Question No 7
AB, CD and EF are listed entities operating in
the same business sector. At 31 December 2009
their P/E ratios were reported as follows AB
17.1 CD 13.2 EF 9.3
Which ONE of the following statements about these
P/E ratios is correct? A. AB is regarded by the
market as the riskiest of the three entities.
B. AB has the highest earnings per share of the
three entities. C. CD represents the safest
investment because its P/E lies midway between
the other two. D. EFs share price may be
relatively lower than that of AB and CD because
of an adverse effect such as a profit
warning Answer A
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CIMA G1 Management Accountant Gateway