CMA Final Paper 13 case studies
CMA Final Paper 13 · Put your knowledge to work in context.
CMA Final Paper 13 is the capstone-level paper of the CMA Final stage, aimed at candidates who already command the management-accounting fundamentals of earlier levels and are moving into senior finance, controllership, and strategic advisory roles. It tests judgement rather than recall: you are expected to frame a messy business problem, choose and defend an analytical approach, and communicate a recommendation that a board or audit committee could act on. The CMA Final Paper 13 case studies are 5 cases and about 5,630 words.
1Priced to Fill a Bottleneck: The Modified-Unit Order at Arvon Precision
Arvon Precision Components runs a single CNC machining shop with 42,000 machine hours available next year. Budgeted demand is 6,000 units of Product A (price ₹1,850, variable cost ₹1,120, 4.0 machine hours) and 2,400 units of Product B (price ₹2,400, variable cost ₹1,600, 6.0 machine hours).
1,038 words, about 5 min2Meridian Health Labs: What Is Nuevo Worth, and What WACC Proves It
Meridian Health Labs (MHL) is bidding for 100% of Nuevo Diagnostics. Nuevo's forecast free cash flow to the firm for the coming year is ₹92 crore, assumed to grow at 3% in perpetuity thereafter.
1,085 words, about 5 min3Vasudha Distributors: Reading a Cluster of Control Failures at One Branch
Vasudha Distributors, with revenue of ₹640 crore across 14 branches, commissioned an internal review after days sales outstanding rose from 58 to 79 days. The findings at one branch were: (i) 34 payments to 11 vendors, in a nine-month period, fell between ₹4.70 lakh and ₹4.99 lakh, against a ₹5 lakh authorisation threshold; (ii) the vendor master contains two supposedly unrelated vendors sharing one bank account, both created by the same branch accountant; (iii) 11 credit notes totalling ₹92 lakh were issued to three customers in the last quarter, all approved by that accountant and all written off within 30 days; (iv) the accountant opens incoming post, prepares the daily collection sheet and posts receipts to the ledger; (v) inventory shrinkage at the branch has risen from 0.4% to 1.1% of sales.
1,146 words, about 6 min4Sanvira Chemicals: Three Entries That Land Exactly on the Covenant
Sanvira Chemicals carries ₹1,260 crore of net debt and a covenant requiring net debt/EBITDA of 3.50x or lower, tested at 31 March. Draft EBITDA is ₹324.5 crore - a ratio of 3.88x - and the CFO proposes three year-end entries: (i) capitalise ₹22 crore of routine plant maintenance as capital work-in-progress, on the ground that a future upgrade will reuse the work; (ii) defer ₹9 crore of warranty and environmental provisions because the claims are not yet "confirmed"; and (iii) record ₹15 crore of goods shipped to a distributor on a bill-and-hold basis, although the distributor has a full right of return and no fixed delivery schedule; gross margin is 30%.
1,120 words, about 6 min5Kaveri Retail: A Scorecard That Is Green Everywhere While Cash Conversion Fails
Kaveri Retail operates 84 stores across six regions. Regional bonuses are paid on a scorecard weighted 40% return on net assets (RONA), 20% net promoter score (NPS), 20% sales growth and 20% shrinkage.
1,241 words, about 6 min