CIMA BA2 case studies
CIMA BA2 · Put your knowledge to work in context.
BA2 Fundamentals of Management Accounting is one of the entry-level subject examinations in CIMA's Certificate in Business Accounting, the first stage of the professional management accounting route. The Certificate is aimed at people who are starting out in finance - students and career changers, as well as non-financial managers and staff in shared-service or transactional roles - and who need a working command of how cost and management information is built and used inside an organisation. BA2 concentrates on the internal, decision-facing side of accounting rather than published financial reporting. Its syllabus content falls into four broad areas: costing and pricing; budgeting and forecasting; cost accounting techniques and systems; and short-term decision making and performance measurement. The CIMA BA2 case studies are 5 cases and about 3,674 words.
1The £38 Order at Merrow Components
Merrow Components makes two products on the same machines. Budgeted annual fixed production overhead is £180,000, recovered on machine hours.
820 words, about 4 min2Aldergate Traders: profitable but overdrawn
Aldergate Traders is negotiating banking facilities for January to March. December sales were £36,000.
700 words, about 4 min3Brenmoor Chemicals: abnormal loss and an offer for work in progress
Brenmoor Chemicals runs a single process. In October, 10,000 kg of material costing £6.10 per kg were input (£61,000).
708 words, about 4 min4Fenwick Engineering: ranking under a machine-hour constraint
Fenwick Engineering has 16,000 machine hours a year and makes three products on the same machines. P sells for £60, has variable cost £36 and uses 3 machine hours; maximum demand is 3,000 units, but a contract obliges Fenwick to supply at least 2,000 units.
703 words, about 4 min5Halstead Furniture: variances that pull in opposite directions
Halstead Furniture makes a single product. The standard cost card shows 5 kg of material at £4.00 per kg and 2.5 labour hours at £12.00 per hour per unit.
743 words, about 4 min