CIMA P2 case studies
CIMA P2 · Put your knowledge to work in context.
P2: Advanced Management Accounting is one of the Objective Test exams in the CIMA Professional Qualification, the route through which candidates work towards the CGMA designation. AICPA & CIMA describes the CGMA qualification as sitting within its Management Accounting and Finance offering, aimed at professionals who want to "drive business performance and strategic decision-making". P2 is the management accounting pillar paper: it builds on the operational-level techniques and pushes candidates into decision support, performance evaluation, pricing, risk and control, and the design of management accounting information in more complex, less structured scenarios. It suits candidates who already handle costing, budgeting and variance work and now need to advise on investment, transfer pricing and divisional performance. The CIMA P2 case studies are 5 cases and about 2,917 words.
1Divisional ROI versus RI: The Nordlake Components Investment Decision
Nordlake Components operates two divisions. Division A has net assets of £8.0 million and current operating profit of £1.12 million.
535 words, about 3 min2Harbourline Retail: Bill-and-Hold Revenue and a Covenant Waiver
Harbourline Retail Ltd is a privately owned retailer with a 31 March year-end. Revenue for the year is £24.6 million and profit before tax is £1.1 million.
767 words, about 4 min3Pemberton Engineering: Purchase versus Lease with Capital Allowances
Pemberton Engineering Ltd is deciding whether to purchase or lease a computer-controlled milling machine. The machine costs £1.2 million and would reduce annual operating costs by £420,000 before tax for five years.
612 words, about 3 min4Meridian Shared Services: The RPA Business Case under Data Quality Risk
Meridian Shared Services processes 480,000 supplier invoices a year for a retail group. The current process costs £6.20 per invoice and has an error rate of 3.5%.
525 words, about 3 min5Calder Furniture: Outsourcing with Scarce Capacity and Quality Risk
Calder Furniture manufactures 24,000 units of component X each year. The variable cost is £18 per unit, and £120,000 of fixed overhead is allocated to the component.
478 words, about 2 min