CIMA BA2 study plan
CIMA BA2 · Give each week a clear focus.
8 weeks · About 7 hours per week
Costing and pricing
Classify costs by element, function, behaviour and relevance, and explain the purpose of each classification
Calculate the direct material and direct labour cost of a product or service from raw usage data
Apportion and reapportion production overheads and compute a predetermined absorption rate
Contrast one blanket absorption rate with departmental rates and explain the effect of over/under absorption
Your checkpoint
A worked cost statement for one product covering materials, labour and absorbed overhead, plus a 20-line definitions sheet, both checked in one sitting in under 60 minutes
Costing and pricing
Prepare marginal costing and absorption costing profit statements for the same period and reconcile the profit difference
Calculate contribution, contribution per unit and contribution-to-sales ratio
Derive selling prices using cost-plus, mark-up, marginal-cost and target-return approaches
Explain the limitations of cost-plus pricing in competitive markets
Your checkpoint
Two full profit statements (marginal vs absorption) plus a reconciliation of the difference, and three pricing calculations for the same product, scored ≥75% against the answer key
Cost accounting techniques and systems
Distinguish job, batch, contract and service costing and choose the appropriate method for a described scenario
Prepare a process account with normal loss, abnormal loss and abnormal gain and value closing WIP
Apply activity-based costing to allocate overheads using cost drivers and compare the result with absorption costing
Record the entries for costing transactions using simple cost ledger logic
Your checkpoint
A complete process account with opening/closing WIP and an ABC vs absorption comparison for a two-product example, both fully balanced and annotated
Costing and pricing & Cost accounting techniques and systems
Build a standard cost card for a product from given technical specifications
Compute material, labour and overhead variances on both a price and a usage/efficiency basis
Reconcile budgeted profit to actual profit through a full variance statement including sales variances
Diagnose which variances are controllable into three short written interpretations
Your checkpoint
A timed 25-mark standard costing question completed in 45 minutes with a full operating statement and three written interpretations, self-marked against the solution
Budgeting and forecasting
State the purposes and stages of the budgeting process and identify the principal budget factor
Prepare a sales, production and material purchases budget from a given demand and inventory policy
Distinguish fixed, flexible and rolling budgets and identify the setting where each is most appropriate
Explain the behavioural consequences of budgets and the role of participation
Your checkpoint
A linked functional budget set (sales, production, materials) that reconciles to a stated finished-goods closing inventory figure, with no arithmetic errors in a self-audit
Budgeting and forecasting
Prepare a monthly cash budget from opening cash, receipts and payments schedules and identify the maximum funding requirement
Apply high-low, linear regression and simple time-series techniques to forecast a cost or sales figure
Explain probabilities and expected values in a forecast context and state the limitations of extrapolation
Reconcile the cash budget to the projected statement of profit or loss and explain the differences
Your checkpoint
A six-month cash budget identifying the month of peak funding need, plus a reconciliation note of at least three reasons why cash differs from profit
Short-term decision making and performance measurement
Calculate break-even point, margin of safety and target profit in units and revenue, including a multi-product mix
Identify relevant and irrelevant costs for a decision and dismiss sunk and committed costs
Evaluate a make-or-buy and a special-order decision with supporting figures
Rank products for a multi-product limiting factor and compute the optimal production plan
Explain shut-down and one-off contract decisions in qualitative as well as financial terms
Your checkpoint
A decision portfolio of four short scenarios (break-even, make-or-buy, special order, limiting factor) each with a recommended action and a one-sentence justification, scored ≥80%
Cost accounting techniques and systems & Short-term decision making and performance measurement
Interpret a set of performance measures including ROI, residual income and segment margin and identify a limitation of each
Explain the balanced scorecard perspectives and match given metrics to them
Assess divisional performance using a transfer pricing comparison
Complete a mixed 50-question mock under timed conditions and review every incorrect answer
Your checkpoint
A timed 90-minute mock exam scored and reviewed, with a written list of the five weakest topics and a revision action for each
Milestones
Week 2: Reconcile marginal and absorption profit figures for the same data set without reference notes, and calculate a cost-plus price correctly on the first attempt
Week 4: Produce a complete standard costing operating statement with price, usage, efficiency and sales variances in under 45 minutes, with arithmetic checked and at least three variances correctly labelled favourable or adverse
Week 6: Build a six-month cash budget from a blank sheet in under 40 minutes with zero errors in the funding requirement identification
Week 8: Score at least 70% on the timed 90-minute mixed mock, with no domain below 60%