CMA Inter Paper 8: Cost Accounting study plan

Distinguish and classify material, employee and overhead costs into direct and indirect categories using at least 20 self-written examples

Compute EOQ, reorder level, maximum/minimum/ average stock and stock turnover from numerical data without referring to notes

Prepare a stores ledger under FIFO and weighted average for the same set of receipts and issues and reconcile the closing values

Explain treatment of normal vs abnormal loss of materials, scrap, spoilage and waste in cost records

Compute labour cost under time rate, piece rate, Halsey, Rowan and Taylor differential piece rate schemes for identical wage data and compare earnings

Prepare a payroll summary showing gross wages, deductions and employer contributions

Allocate and apportion overheads using primary and secondary distribution, including reciprocal services by repeated distribution and simultaneous equations

Calculate machine hour rate, labour hour rate and blanket vs departmental overhead rates and identify over/under absorption

Prepare a cost sheet for a manufacturing entity and a service entity, showing prime cost, works cost, cost of production, cost of sales and profit

Distinguish job costing from batch costing and prepare a job cost card with overhead recovery

Compute contract cost, work certified, work uncertified, retention money and notional profit transfer to P&L

Apply process costing with normal loss, abnormal loss/gain and equivalent production under FIFO and weighted average

Prepare a reconciliation of cost and financial accounts starting from either profit figure and explain every reconciling item

Compute comprehensive machine hour rate and integrate it into a job or batch costing problem

Solve one multi-topic case study combining material, labour and overhead within a single entity

Identify which costing method (job, batch, contract, process, service) suits a described business scenario and justify the choice

Apply marginal costing to compute contribution, P/V ratio, break-even point, margin of safety and required sales for a target profit

Prepare income statements under absorption and marginal costing for the same data and reconcile the profit difference through inventory change

Compute standard costing variances: material price, usage and mix; labour rate, efficiency and idle time; variable and fixed overhead variances

Apply activity-based costing to allocate overheads using cost drivers and compare results with traditional absorption

Explain and apply target costing, life cycle costing and kaizen costing to a given product scenario

Evaluate a make-or-buy decision including relevant fixed costs and opportunity cost

Solve accept-or-reject special order, shut-down and continue-or-discontinue decisions using relevant costing

Rank products under a limiting factor using contribution per unit of scarce resource and determine the optimal mix for two limiting factors graphically

Apply differential costing and opportunity costing to a pricing decision and recommend a price with justification

State the objective, scope and structure of cost accounting standards and distinguish them from financial reporting standards

Summarise the treatment prescribed by at least six cost accounting standards on topics such as material cost, employee cost, overheads, depreciation and packing cost

Explain the elements of a cost accounting system, cost centres, profit centres and the concept of cost reduction vs cost control

Describe the purpose and basic mechanics of cost records, integral accounting and the cost audit framework

Solve three full-length case studies under exam timing, mixing costing methods with decision-making and cost management techniques

Revise all formula sheets and error logs from weeks 1 to 7 and re-solve every previously wrong answer

Practice presenting numerical answers with workings, assumptions and a clear final statement as expected in the exam

Self-assess weak domains using a scored checklist and list the five topics needing final revision