CIMA BA1 case studies
CIMA BA1 · Put your knowledge to work in context.
BA1, Fundamentals of Business Economics, is one of the four subjects in the CIMA Certificate in Business Accounting - the entry-level qualification offered through AICPA & CIMA for people starting a career in accounting, finance and business. It suits school leavers, career changers, non-finance managers and anyone who needs a grounding in economics before moving on to the professional CGMA qualification. The CIMA BA1 case studies are 5 cases and about 2,962 words.
1Marlow Fasteners: responding to a rival's price cut
Marlow Fasteners makes a single industrial component sold to UK equipment builders at £40 per unit. Monthly volume is steady at 12,000 units, variable cost is £22 per unit and monthly fixed costs are £150,000.
521 words, about 3 min2Pennick Engineering: capacity constraint and a marginal special order
Pennick Engineering runs a single CNC machining cell with 8,000 hours available next quarter and no prospect of subcontracting or extra shifts. It makes two products.
551 words, about 3 min3Delmore Group: ROI, residual income and a manager's investment decision
Delmore Group's instruments division has capital employed of £4.2m and budgeted annual operating profit of £756,000. The group's weighted average cost of capital is 12%, and the board evaluates divisional managers on return on investment, with a notional hurdle of 15%.
508 words, about 3 min4Halstead Trading: year-end adjustments and a bank covenant
Halstead Trading Ltd's draft statement of profit or loss for the year ended 31 March 20X5 shows profit before tax of £186,000. No corporation tax has yet been provided; the rate is 19%.
562 words, about 3 min5Covey Instruments: a cut-off dispute, an undisclosed interest and a weak board
Covey Instruments Ltd is a private company with a 31 December year end, £3m of bank debt and a covenant requiring EBITDA above £900,000. On 2 January 20X6 the sales director shipped and invoiced £240,000 of goods to a distributor on 120-day terms, at a 40% gross margin.
820 words, about 4 min