CGMA case studies
CGMA · Put your knowledge to work in context.
The Chartered Global Management Accountant (CGMA®) qualification is described by its awarding body as the premier management accounting credential, indicating advanced proficiency in finance, operations, strategy and management. It is intended for management accountants and finance professionals who want global recognition of their business acumen, ethics and commitment to the profession. The CGMA case studies are 5 cases and about 4,915 words.
1Meridian Components: The Bottleneck Machine and a Marginal NPV
Meridian Components runs a single machining cell that is the plant's bottleneck. A replacement machine costs 1,200,000, has a five-year life and no residual value, and would cut labour and rework costs by 440,000 a year while adding 40,000 a year in maintenance.
829 words, about 4 min2Halversen Optics: Mix Under a Contract Constraint
Halversen Optics makes two lens types on one grinding cell that runs 8,000 machine hours a year; changeovers consume 96 hours of that. Standard lens: price 60, variable cost 42, 0.5 machine hours, annual demand 12,000 units.
876 words, about 4 min3Nordhaven: Defending the Premium Position With a Second Brand
Nordhaven makes premium packaging equipment at 4,000 a unit with variable cost 2,400. It sold 12,000 units last year against 14m of fixed costs.
1,113 words, about 6 min4Calder Industrial: ROI, Residual Income and a Loss-Making Key Account
Calder Industrial's components division has invested capital of 40m and budgeted operating profit of 6m. The group's after-tax cost of capital is 10%.
1,048 words, about 5 min5Ashcombe Retail: Closing a Seasonal Funding Gap
Ashcombe Retail turns over 60m and is highly seasonal: the September stock build pushes the cash balance to a forecast low of − 2.6m against a 2.0m overdraft. Purchases are 42m a year on 30-day terms, of which 35% carry a 1.5% settlement discount for payment within 30 days.
1,049 words, about 5 min