CIMA exam technique session (E1,F1,P1,P2) Russia and CIS - … locations docs/Russia and CIS… ·...

CIMA exam technique

session

(E1,F1,P1,P2)

Russia and CIS - April 2013

Speaker: Petrina Gannon ACMA, CGMA

Study support specialist

Overview

• Understanding progression from operational level

• Exam format

• CIMA verbs

• Using your time wisely

• How to pass papers with example questions

• Day of exam - do’s and don’ts

• Free study resources

• Any questions

Understanding progression

• CIMA is a progressional syllabus

• Knowledge gained from certificate and operational levels will

be used for management level.

• Pillars of the syllabus complement each other.

• If you have exemptions from cert/ops level, you should ensure

you review the syllabus detail for the level below the one you

are on.

• If you think you have significant knowledge gaps, you should

review the past exam papers for operational level.

Exam format - Operational level

P1, E1, F1 Section A Section B Section C

Questions 10 MCQ style 6 short q’s 2 long scenario

style q’s

Marks 20 30 50

Exam time: 3 hours plus 20 minutes reading time

Pass mark: 50%

On completion of all 3 papers you will receive the CIMA Diploma in

Management Accounting

Exam format - Management level

P2, E2, F2 Section A Section B

Questions 5 short scenario q’s 2 long scenario q’s

Marks 50 50

Exam time: 3 hours plus 20 minutes reading time

Pass mark: 50%

On completion of all 3 papers you will receive the CIMA Advanced

Diploma in Management Accounting

Verb Hierarchy - Levels 1 and 2

Learning Objective Verbs Used Definition

Level

1

Knowledge

What you are

expected to know

List

State

Define

Make a list of.

Express, fully or clearly, the details/facts of.

Give the exact meaning of.

Level

2

Comprehension

What you are

expected to

understand

Describe

Distinguish

Explain

Identify

Illustrate

Communicate the key features of.

Highlight the differences between.

Make clear or intelligible/state the meaning or

purpose of.

Recognise, establish or select after consideration.

Use an example to describe or explain something.


Level

3

Application

How you are expected

to apply your knowledge

Apply

Calculate

Demonstrate

Prepare

Reconcile

Solve

Tabulate

Put to practical use.

Ascertain or reckon mathematically.

Prove with certainty or exhibit by practical

means.

Make or get ready for use.

Make or prove consistent/compatible.

Find an answer to.

Arrange in a table.

Verb Hierarchy - Level 3


Level

4

Analysis


to analyse the detail of

what you have learned.

Analyse

Categorise

Compare and

contrast

Construct

Discuss

Interpret

Prioritise

Produce

Examine in detail the structure of.

Place into a defined class or division.

Show the similarities and/or differences

between.

Build up or compile.

Examine in detail by argument.

Translate into intelligible or familiar terms.

Place in order of priority or sequence for

action.

Create or bring into existence.



Level

5

Evaluation


to use your learning to

evaluate, make

decisions or

recommendations.

Advise

Evaluate

Recommend

Counsel, inform or notify.

Appraise or assess the value of.

Propose a course of action.


Time management

• Total time of 3 hours and 20 minutes

Using your reading time (20 minutes)

• For operational level exams, use this time to either answer

section A or review the scenarios in section C

• For management level exams, use this time to analyse the

requirements of section B questions.

• Also analyse what your strongest question will be.

• You cannot open your answer books during reading time or

use a calculator, but you can jot notes on the exam paper.

Time management

• Total time of 3 hours and 20 minutes

Using your exam time (3 hours)

• Begin with your strongest question as you should have this

marked within reading time.

• Remember your timings - 1.8 minutes per mark, write the time

that you should complete each answer next to the question.

• Highlight the verbs within the requirements so you know what

you are being asked.

Time management

• Then review the scenario and highlight parts that are relevant

to requirements.

• Plan your answer by jotting down a few key points that you

want to make.

• Also any calculations that are required use a workings area

within your answer book that is on a separate page to your

answer.

• Then begin your answer. Be clear concise and constantly

view the requirements to ensure you answer what is being

asked.

Practising past exam papers

• Ideally aim to complete two full mock papers before your

exam.

• Remember to practice to timed conditions (1.8 minutes per

mark)

• Practice using the reading time of 20 minutes. This can be

particularly useful at operational level as you could complete

section A in this time.


• If you have friends/family willing to help, get them to read your

answers.

• Some tuition providers provide revision courses that include

mock exams, correction and feedback.


• Example P1 –Nov 2012 exam paper- Q4a (13 marks)

Evaluate the investment in the proposed system using net present

value as the basis for your evaluation. Your workings should be

shown in $m to one decimal place.

• If you use a set pro forma for NPV calculations this will ensure

all your costs are covered and you will not miss out on

anything, giving you the best chance at scoring optimal

marks.


• Example P1 – Nov 2012 exam paper- Q4a (13 marks)

• Step one: Read the information you are given about the investment and decide what calculations need to be done first and also determine what are relevant cash-flows.

• Step two: Calculate the normal depreciation given at straight line (note most questions have this included with another expense, this is the hint that you must deduct it from the expense). In this question it is included in fixed operating costs. Normal depreciation is not a relevant cash-flow.



• Step three: Calculate the expected values of the new government fines. You must then deduct this from current figure to realise potential savings made. This is a relevant cash-flow.

• Step four: Calculate the tax depreciation, don’t forget it is reducing balance method and remember we have residual value at year 6. This is a relevant cash-flow.



• Step five: Calculate the relevant cash-flows including the following;

Income from sale of recycled waste

Savings in waste disposal costs

Fixed maintenance costs

Fixed operating costs without deprecation (step 2)

Government fines savings



• Step six: Calculate the tax of 30% on relevant cash flows from

step 5 and remember to split the tax payable between 2

years.

Practising past exam papers• Example P1 – Nov 2012 exam paper- Q4a (13 marks)

• Step 7- Set up your NPV table as follows:

Ref Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7

Initial investment

Residual value

Cash flows 5

Tax Payable 6

Net cash flows

DF @12%

Present Value



• Last but not least add up your present values for each

year to give a total NPV figure.

• State your outcome, if a negative NPV do not recommend

the investment. (Nov 2012 exam paper)

• If a positive NPV accept the investment.


• Example P2 –Q6a Mar 2013 (13 marks)

Identify, using graphical linear programming, the optimal production

plan for products E and R to maximise THS’s profit in the month.

• Analyse what you are being asked, 2 products to maximise

profit with limited resources available and display on a graph.



• Step one: Decide what workings are required before you draw

the graph.

• Step two: Calculate the costs per product.

• Step three: Calculate the contribution per product

• Step four: Identify the constraints per resource and per

product.

• Step five: Decide how you will set up graph, what units is

needed for each axis. If you plan before you draw it will save

time.



• Step six: Remember to ask for graph paper from the

invigilator.

• Step seven: Using a ruler plot the lines required from your

constraint workings.

• Step eight: Don’t forget to highlight what each line on the

graph represents.

Finally identify and state the optimal production plan as

from the graph.


• Remember to clearly show your workings for each questions

and state the question number it refers to.

• Reference your workings back to the question you are

answering, especially if they are on different pages.


• Clearly present your answers and show reasonable logic so

the examiner can follow your answer progression.

• Write down on paper any calculations you do, as if you make

a mistake on a calculator and show no workings an examiner

cannot give you marks.

Day of exam - Do’s and Don'ts

Do:

• Bring plenty of pens, tippex, calculator, highlighters etc.

• Arrive in plenty of time with you exam admission advice and

photographic ID.

• Bring some flash cards/revision notes with you that you can

go through before exam hall opens.


Do:

• Stay calm and focused, it will be a long day.

• Use your reading time wisely, write notes on exam paper and

highlight verbs and important notes in questions.

• Plan your answers.

• Write everything in your answer book including workings.

• Label and reference your workings.


Don’ts:

• Arrive late.

• Cram the night before.

• Talk to other students, it will only increase your nerves.

• Start writing furiously when you open paper.

• Waste time if you cannot answer a question, move on leave

space in your answer book for later.

Free study resources

• Available at Available at

www.cimaglobal.com/Students/Exam-preparation

• Make use of free articles from Velocity and FM magazine that

are provided for each paper and syllabus area

• Get plenty of practice of past exam papers, and use the

suggested examiners answers and post exam guides after

you have finished.

Free study resources

• Available at www.cimaglobal.com/Students/Exam-

preparation

• View the study help videos that give guidance from

examiners, tutors, and previous students on exam day help,

study tips and effective studying.

• Follow the study support blogs on CIMAsphere in the run up

to exam day, also see the discussion boards for operational

and management level to chat with other students.

CIMA exam technique session (E1,F1,P1,P2) Russia and CIS - … locations docs/Russia and CIS… ·...

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