Costing and Fm Important Topics | Download

Recent stats say that, out of the students who have failed Group-1, 72% have failed in Costing and FM along with some other subject, and 46% students failed only in Costing and FM.

This subject has two shades. It has been a boon for a set of students and for some, it has been a curse.

So we decided to go deep into the matter and have inquired 300+ students, which includes students who have been failing this subject for at least two attempts and students who have got exemptions. We also extracted much needed info from a student from Vijayawada who scored 86 in this subject.

Almost all the students who succeeded in this have noted the same point, PRACTICING WITH PEN AND A BOOK. A close analysis of the preparation style of students who have been failing revealed that, most of them were just going through the questions and not putting them on to the paper. Not just Seeing, PRACTICE, PRACTICE and PRACTICE. By looking at the book, it looks like everything is ok, but once you put the pen on the paper, it wont move after two steps.

Second point is the presentation. Costing is all about presentation. You may bring the solution, but unless you present it in a format, you are not going to score marks. We have obtained the certified copies of a few students which revealed the same.

“Kindly Read it & Share It”

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Important Topics

Costing :

Important Chapters - Practical

_ Material Cost

_ Marginal Costing (BEP, MOS, PV ratio Etc.)

_ Standard Costing (Total Variances)

_ Budgeting Control

_ Process Costing (Most Important)

_ Joint & By Product

_ Labour – Bonus Calculation (Rowan/halsey)

Important Chapters – Theory

_ Basic Concepts in costing- Different types of cost

_ ABC Analysis

_ Treatment of Under/over absorbed Overhead

_ Integrated accounts

_ Methods to apportion joint costs

Financial management :

Important Chapters- Practical

_ Cost of Capital

_ Leverages (DOL,DFL,DCL)

_ Cash Flow Statement

_ Working Capital Changes - Debtor Management & Estimation of Working capital Requirement

_ Ratio Analysis – Calculation of Ratios

Important Chapters – Theory

_ Basic Concepts in FM – Profit Vs Wealth Maximizations (Most Important)

_ Source of Finance – Venture Capital Finance, Debt Securitizations

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IPCC Costing & FM Imp Questions for May 2014

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Go Through the Important Theory Questions in Costing and FM, for CA IPCC May 2014 Exams.

Even though enough care is taken while selecting the questions, students are recommended not to put in too much reliance on these.

Costing:

· Discretionary Costs

· Conversion Cost

· Product Costs Vs Period Costs

· Bin Cards Vs Stores Ledger

· Allocation and Apportionment

· Accounting Treatment for Over-time Premium

· Short Notes on General Ledger Adjustment Account

· Advantages of Cost-Plus Contract

Financial Management (FM):

· External Commercial Borrowings

· Business Risk Vs Financial Risk

· ADR Vs GDR

· Role of CFO

· Types of Floats in the context of Cash Management

· Benefits of Optimum Capital Structure

· Ploughing Back of Profits

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Preparation Tips

1. Pay due attention on theory ..some students

doesnt do that it contains weightage of 20- 28 marks in the paper.

2. If u have problem in doing the whole theory

portion just do past examination question or from

scaner or from practice manual (all r equal )

3. pay equal attention on CA n FM dont go in

exams on the base of any 1 of them

4. If u dont know any answer n dont have any

single idea about its better to leave that

for eg :- if in exams GDR (global depository

reciepts) comes n u write deposits that reciept in whole world it will make a bad impression of u on checker

5. make proper working notes it plays a vital

role in step marking watever calculation u do name them as working note .

6. dont pay unnecesary tym in solving

particular question

7. if u r using any formula in ur solution then first write it n then put numbers or figures in it . this shows ur knowledge about formulaes

8. Always do RTP’s hope this will work out for u.

Part A: Cost Accounting

1.Without a doubt you should do Standard & Marginal Costing in starting. Not even a single theory question asked from this two topics so just concentrate on practical questions. Try to make your own notes or summary of all formula as this chapters based on formula only. Around 16-20 marks covered by this two topics.

2.Now you should do Contract, Process , Equivalent, Budgetary & Operating Costing. This topics again cover 16-20 marks. Theory will come from Budgetary & Operating only. Better to go through Practice Manual also as sometimes not exact but of same pattern question comes in exam.

3.Now you should do small topics like Material, Labour & Overhead . Mainly question comes from Direct Material like EOQ, Re-order level etc. Don’t waste much time on Labour & Overhead as they are lengthy as well as not questions not frequently asked from this topics.

4.Now do this 3 topics from Practice Manual only because question get repeated in this topics: Non Integrated, Integrated Account & Reconciliation of Cost & Financial Accounts.

5.Generally 16 marks theory questions asked in exam.

Part B : Financial Management:

1.You should start with Capital Budgeting and than Cost of Capital this both chapters covers 16-20 marks easily, mainly practical question comes from this chapters so don’t waste time on reading theory. If anyone not interested in doing material which he/she have than just do all question from practice manual of this topic.

2.Now you should do leverage , Ratios & Working Capital Management. This topic are easiest as well scoring topics. This covers again around 20 marks minimum and both practical & theory questions asked from it. Do this topics properly from your books which u have than do question from Practice Manual and mainly theory questions comes from Practice manual only.

3.Than do Cash Flow Statement & Fund Flow Statement, as we studied this topics earlier so do it fast and don’t waste much time both theory and practical questions may be asked. Marks covered around 8 but sometimes 16 marks big question also asked so prepared for it.

4.Now do theory properly as this paper contain good questions of theory & overall theory asked in the question paper is minimum of 30-32 marks out of which 16-20 mark’s theary is from Financial Management. Important topics for theory are Basic Chapter, Ratios (Importance & Limitation), Types of Financing, Management of Debtors etc. (Make sure once you read all theory question in Practice Manual.)

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Downloads

Costing And FM - Hand Book

Costing And FM Theory

Costing Formulae

Fm Formulae

Stategic Preparation Tips

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