G1MAGateway_nov2012_questionpaper

7/30/2019 G1MAGateway_nov2012_questionpaper

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DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

The Chartered Institute of Management Accountants 2012

G1-CIMAM

anagementAc

countantGate

wayAssessment

G1 - CIMA Management Accountant

Gateway Assessment

20 November 2012 Tuesday Afternoon Session

Instructions to candidates

You are allowed three hours to answer this question paper.

You are allowed 20 minutes reading time before the examination beginsduring which you should read the question paper and, if you wish, highlightand/or make notes on the question paper. However, you are not allowed,under any circumstances, to open the answer book and start writing or useyour calculator during this reading time.

You are strongly advised to carefully read ALL the question requirementsbefore attempting the question concerned (that is, all parts and/or sub-questions). The question requirements for Section A are highlighted in adotted box.

ALL answers must be written in the answer book. Answers or notes written

on the question paper will no t be submitted for marking.

You should show all workings as marks are available for the method you use.

ALL QUESTIONS ARE COMPULSORY.

Section A comprises three questions on pages 2 to 7.

Section B comprises one question containing 12 objective test sub-questionson pages 8 to 12.

Maths tables and formulae are provided on pages 13 to 15. These aredetachable for ease of reference.

The list of verbs as published in the syllabus is given for reference on page19.

Write your candidate number, the paper number and the examination subjecttitle in the spaces provided on the front of the examination answer book. Alsowrite your contact ID and name in the space provided in the right handmargin and seal to close.

Tick the appropriate boxes on the front of the answer book to indicate whichquestions you have answered.

TURN OVER


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Management AccountantGateway

2 November 2012

SECTION A 75 MARKS

[You are advised to spend no longer than 45 minutes on each question in this section]

ANSWERALL THREE QUESTIONS

Question One

M Company manufactures and assembles a range of components for sale to other manufacturers.The company operates in a constantly changing market and has to introduce new componentsregularly as older components are no longer produced. The market in which M Company operateshas a number of competitors producing similar items and therefore the company has alwaysconcentrated on being as efficient as possible, in particular with the control of costs. To this end,M Company has for many years used Activity Based Costing.

In order to decide whether or not to produce a new component, M Company uses a target costapproach.

M Company is considering the production of a new component, X1. The following information isavailable.

The cost pools and cost drivers used by M Company for all its components are as follows:

Cost pool $ Cost driver

Machining 1,064,000 Machine hours 380,000Assembly 580,000 Direct labour hours 725,000Set up costs 120,000 Set ups 60Order processing 84,000 Customer orders 24,000Stores and purchasing 156,960 Requisitions raised 18,000

The data for X1 are as follows:

Due to the constantly changing market, M Company is looking only at the next year, when it isexpected that 40,000 units of X1 will be produced and sold. The target selling price for X1 is to be$40 per unit. M Company expects a 15% margin on sales on all of its products.

Each unit of X1 is expected to require $10 of direct materials and to need two machine hours toproduce.

During the year the production of 40,000 units of X1 will require:

Number of set ups 10Number of orders to be processed 6,000Number of requisitions to be raised 2,500

M Company has a very experienced labour force and expects there to be an 80% learning curvein the assembly of X1. The number of direct labour hours for the first unit will be 8 hours and asteady state of labour hours for production will be reached at 474 units, after which each unit willrequire the same average number of direct labour hours.

Required

(a) Explain what is meant by 'target cost approach' and what relationship it has, if any,with life cycle costing.

(6 marks)


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November 2012 3 Management AccountantGateway

The direct labour cost per hour in assembly is $12 per hour.

The 80% learning index is -0.322

The calculation for the steady state direct labour hours of assembly per unit of X1 should be takento one decimal point.

.

Section A continues on page 4

TURN OVER

Required

(b) Calculate the estimated cost per unit of producing X1 at the steady state of productionand advise M Company as to whether it should proceed with its production.

(15 marks)

(c) DiscussTWO possible problems/limitations with M Company's use of the target costapproach in the above scenario.

(4 marks)

(Total for Question One = 25 marks)


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4 November 2012

Question Two

TP Company has invested in the development of a new customer relationship information systemwhich will improve customer ordering and invoicing and provide better customer information. It willalso enable the company to track trends in customer behaviour.

However, the project which was set up to design, develop and deliver the new customerrelationship information system has experienced numerous problems throughout its lifecycle. Theproject ended up being well over budget and was not ready for launch by the due date.

Two months after the new system was installed it is clear that there are major errors within thesystem. A number of customers have complained that the new system is not user friendly andothers say that they have not received the correct orders. In addition, some customers say thatthey have received incorrect invoices. Even worse, some customers are saying that they will nolonger do business with TP Company because of the problems they have encountered with thenew system.

A meeting, called to discuss the failures of the project, between the project manager, the projectteam and the project sponsor has ended up with everyone blaming each other. The project teammembers said they were unclear about their responsibilities and that there was poorcommunication throughout the project.

It is apparent that a project management methodology, which could have helped in identifying andrectifying earlier in the project lifecycle the problems that have now transpired, was not used.

Section A continues on page 6

Required:

(a) Explain to TP Company how a project management methodology, such as PRINCE2,could have helped to prevent the failures of the customer relationship informationsystem project.

(15 marks)

(b) Discuss howeach of the two project management techniques, work breakdownstructure and Gantt charts, could have been used to help communication in thecustomer relationship system project.

(10 marks)

(Total fo r Question Two = 25 marks)


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TURN OVER


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6 November 2012

Question Three

J KL, a listed entity, made investments in three entities, AB, CD and EF, during the financial yearto 31 December 2011. The summarised statements of financial position for J KL, AB and CD as at31 December 2011 are provided below:

JKL AB CD

ASSETS $000 $000 $000Non-current assetsProperty, plant and equipment 90,200 24,000 13,100Investments 23,400 - -

113,600 24,000 13,100Current assets 9,000 4,200 3,300Total assets 122,600 28,200 16,400

EQUITY AND LIABILITIESEquityShare capital ($1 ordinary shares) 50,000 10,000 5,000Share premium 10,000 - -Revaluation reserve 12,000 2,000 1,000

Retained earnings 24,600 10,800 7,60096,600 22,800 13,600

Liabilities

Non-current liabilities 18,000 2,000 -Current liabilities 8,000 3,400 2,800Total liabilities 26,000 5,400 2,800

Total equity and liabili ties 122,600 28,200 16,400

1. J KL acquired 8 million of the $1 ordinary shares of AB on 1 J anuary 2011 for $17.3 million.The investment is carried at cost in the financial statements of J KL. At the date ofacquisition, AB had retained earnings of $8.2 million and a balance on revaluation reserveof $2 million. The fair value of the net assets acquired was the same as their carrying valueat the date of acquisition.

The non-controlling interest was valued at fair value at the date of acquisition. The fair valueof the non-controlling interest at 1 J anuary 2011 was $4.1 million.

2. J KL acquired 40% of the ordinary share capital of CD on 1 J uly 2011 for $5 million. Theinvestment is carried at cost in the financial statements of J KL. At that date, CD hadretained earnings of $6.2 million and a balance on the revaluation reserve of $1 million.

3. J KL made a further investment in EF, a listed entity, at a cost of $1.1 million. The sharesacquired amounted to 8% of the ordinary share capital of EF. The investment was not

classified as held for trading and is currently carried at cost in the financial statements ofJ KL. At 31 December 2011 the investment in EF had a market value of $1.3 million.

4. In the year to 31 December 2011, AB sold goods to J KL with a sales value of $1.2 million.10% of the goods remain in inventories at the year end. AB made a 25% profit margin on allsales to J KL.

5. An impairment review conducted at the year end estimated that goodwill on acquisition ofAB was impaired by 10%. There was no evidence of the other investments being impaired.

6. The revaluations are performed every two years by an independent valuer. The pastrevaluations relate solely to non-depreciable assets.


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(Total for Section A = 75 marks)

End of Section ASection B starts on page 8

TURN OVER

Required:

(a) Explain howeach of the three investments held by J KL should be classified andaccounted for in the consolidated financial statements of J KL for the year to 31December 2011.

(7 marks)

(b) Prepare the consolidated statement of financial position of the J KL Group as at 31December 2011.

(18 marks)

(Total for Question Three = 25 marks)


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8 November 2012

SECTION B 25 MARKS

[You are advised to spend no longer than 45 minutes on this section]

ANSWERALL TWELVE QUESTIONS

Question Four

4.1 M produces a single product, T, for which the following direct labour budget was set for theperiod:

Budgeted production 4,000 unitsDirect labour hours 20,000Budgeted labour cost $160,000

The actual results for the period were:

Production 4,200 unitsDirect labour hours 23,520Labour cost $176,400

During the period, the manager of M realised that, due to a planning error, the originalstandard cost that was set was unrealistic and therefore unacceptable for cost control. Therevised standard to be used for analysis purposes is:

5.5 direct labour hours per unit of TLabour cost per hour $7.80

What was the total planning variance for the period?

A $8,400 adverse

B $12,180 adverse

C $16,400 adverse

D $19,360 adverse

(2 marks)

Section B continues on the opposite page

Instructions for answering Section B:

The answers to the twelve sub-questions in Section B should ALL be written in youranswer book.

Your answers should be clearly numbered with the sub-question number and ruledoff so that the markers know which sub-question you are answering. For multiplechoice questions you need only write the sub-question number and the letterof the answer option you have chosen. You do not need to start a new page foreach sub-question.


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4.2 A is divided into divisions and each division is a cost centre. In the Machining Division,where capacity is limited to 10,000 hours per period, two products are manufactured. Theproduction costs of the two products are as follows:

Product A Product B per unit per unit

Variable costs 40 25Fixed costs 20 16

60 41

Period demand 3,000 units 3,000 units

Fixed costs are absorbed at 8 per machine hour.

Each of the products can be bought in from external suppliers to meet any excess demand;Product A can be bought for 71 per unit and Product B for 48 per unit.

What is the minimum total cost (divisional production costs plus any external purchasecosts) the manager of the Machining Division must incur to meet the total demand for bothproducts?

A 312,750

B 315,250

C 318,400

D 320,500(2 marks)

4.3 D is a very large manufacturing company which has six divisions. Each division is based ona geographical area of the country in which D operates and most of the divisions supplyand receive components to/from each other.

Like many other companies, D has always used a cost-based approach to transfer pricing

between divisions within the company.

The following explanations are often given as to why cost-based approaches to transferpricing are used.

(i) Because the receiving division wishes to maximise its profits(ii) Because the external market is imperfect(iii) Because there is no external market for the component being transferred(iv) Because the transferring division wants to maximise profits

Which of the above is/are correct?

A (i) only

B (ii), (iii) and (iv)

C (ii) and (iii)

D (i) and (iv)(2 marks)

Section B continues on page 10

TURN OVER


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10 November 2012

4.4 Q is due to launch a new product into the market but is undecided about which pricingstrategy to use. When is market penetration pricing appropriate?

(i) If demand is inelastic(ii) If there are significant economies of scale to be achieved(iii) If the firm wishes to discourage new entrants from entering the market(iv) If the product has a short life cycle

A (ii) and (iii)

B (i) and (iv)

C (iii) only

D (ii), (iii), and (iv)(2 marks)

4.5 Which ONE of the following, according to Herzberg's motivation theory, is NOT an exampleof a hygiene factor?

A Policies and procedures for staff treatment

B Pleasant physical and working conditions

C Recognition of good work

D Appropriate level of salary and status for the job(2 marks)

4.6 Which ONE of the following approaches to managing stakeholders is recommended if thestakeholder has a high level of interest but a low level of power?

A Participation

B Education/communication

C Intervention

D Direction(2 marks)

4.7 Describe the TWO main ways in which an organisation can generate superior competitiveperformance and gain competitive advantage.

(2 marks)

4.8 Identify THREE of the fundamental principles underlying CIMA's guidelines on professionalethics.

(3 marks)

Section B continues on the opposite page


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4.9 AB granted 1,000 share options to its 300 employees on 1 J anuary 2011. To be eligible,employees must remain employed for three years from the date of issue and the rightsmust be exercised in J anuary 2014. In the year to 31 December 2011, 32 staff left and afurther 35 were expected to leave over the following two years.

The fair value of the share options at 1 J anuary 2011 was $8.

The accounting entry to record the expense associated with the share options (to thenearest $), for the year to 31 December 2011, in accordance with IFRS 2 Share-basedPayment is to:

A debit staff costs $1,864,000 and credit other reserves (within equity) $1,864,000.

B debit staff costs $1,864,000 and credit liabilities $1,864,000.

C debit staff costs $621,333 and credit other reserves (within equity) $621,333.

D debit staff costs $621,333 and credit liabilities $621,333.

(2 marks)

4.10 NM acquired an equity investment in another entity and classified it immediately as held for

trading. The investment cost $880,000 on 1 May 2011 and at its following year end NM hadrecognised a gain of $6,800 on the investment. NM pays 2% commission to its broker on alltransactions.

The value of this investment will be included in NM's statement of financial position at:

A $886,800

B $904,400

C $904,536

D $912,560

(2 marks)

4.11 GHJ operates a defined benefit pension plan for its employees. At 1 J uly 2011 the presentvalue of the plan liabilities was $1,400,000. The interest cost on the plan liabilities wasestimated at 7%.

The actuary estimates that the current service cost for the year ended 30 J une 2012 is$300,000. GHJ made contributions into the pension plan of $400,000 in the year.

The pension plan paid $220,000 to retired members in the year to 30 J une 2012.

At 30 J une 2012 the present value of the plan liabilities was $1,600,000.

GHJ recognises actuarial gains and losses in other comprehensive income in the period inwhich they occur.

The actuarial gain or loss on the pension liabilities that GHJ will recognise in othercomprehensive income for the year ended 30 J une 2012 is:

A gain of $198,000

B gain of $22,000

C loss of $8,000

D loss of $22,000

(2 marks)

Section B continues on page 12TURN OVER


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12 November 2012

4.12 ABC issued6% debentures on 1 J anuary 2010 at their par value of $3 million. Issue costswere $200,000. The interest on the debentures is paid annually in arrears. The debentureswill be redeemed in 4 years' time at a premium of $400,000. The effective interest rate inrespect of these debentures is approximately 11%.

The debentures will be included in the statement of financial position of ABC at 31December 2011 at a value of:

A $2,928,000

B $2,940,000

C $3,070,080

D $3,150,000

(2 marks)

Total for Section B = 25 marks)

End of Question Paper

ReminderAl l answers to Section B must be written in your answer book.

Answers to Section B written on the question paper will not besubmitted for marking

Maths tables and formulae are on pages 13 -15 which are detachablefor ease of reference


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Maths Tables and Formulae

Present Value Table

Present value of $1, that is ( ) nr +1 where r=interest rate; n = number of periods untilpayment or receipt.

Periods(n)

Interest rates (r)1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9092 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.8263 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.7514 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.6835 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.6216 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.5647 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.5138 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.4679 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424

10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.38611 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.35012 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.31913 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.29014 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.26315 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.23916 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.21817 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.19818 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.18019 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.16420 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149

Periods(n)

Interest rates (r)11% 12% 13% 14% 15% 16% 17% 18% 19% 20%

1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.8332 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.6943 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.5794 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.4825 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.4026 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335

7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.2798 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.2339 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194

10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.16211 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.13512 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.11213 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.09314 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.07815 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.079 0.06516 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.05417 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.04518 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.03819 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.03120 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026


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14 November 2012

Cumulative present value of $1 per annum, Receivable or Payable at the end of each year for n

years rr n+ )(11

Periods(n)

Interest rates (r)1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909

2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.7363 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.4874 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.1705 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791

6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.3557 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.8688 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.3359 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759

10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145

11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.49512 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.81413 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.10314 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.36715 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606

16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824

17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.02218 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.20119 17.226 15.679 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.36520 18.046 16.351 14.878 13.590 12.462 11.470 10.594 9.818 9.129 8.514

Periods(n)

Interest rates (r)11% 12% 13% 14% 15% 16% 17% 18% 19% 20%

1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.8332 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.5283 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.1064 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.5895 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991

6 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.3267 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.6058 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.8379 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031

10 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192

11 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.32712 6.492 6.194 5.918 5.660 5.421 5.197 4.988 7.793 4.611 4.43913 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.53314 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.61115 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675

16 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.73017 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.77518 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.81219 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.84320 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870


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FORMULAEAnnu ity

Present value of an annuity of $1 per annum receivable or payable for n years,commencing in one year, discounted at r% per annum:

PV =

+ nrr ][1111

Perpetuity

Present value of $1 per annum receivable or payable in perpetuity, commencing in one year,discounted at r% per annum:

PV =r

1

Growing Perpetuity

Present value of $1 per annum, receivable or payable, commencing in one year, growing inperpetuity at a constant rate ofg% per annum, discounted at r% per annum:

PV =gr

1

Time series

Additive model:Series =Trend +Seasonal +Random

Multiplicative model:Series =Trend*Seasonal*Random

Regression analysis

The linear regression equation ofY onX is given by:

Y =a +bX or Y Y =b(X X ),where:

b =)(

)(

X

XY

Variance

Covariance=

22)(

))((

XXn

YXXYn

and a =Y b X or solve

Y =na +b X

XY =a X +b X2

Exponential Y =abxGeometric Y =aX

b

Learning curve

Yx = aXb

where:Yx = the cumulative average time per unit to produce X units;a =the time required to produce the first unit of output;X = the cumulative number of units;b =the index of learning.

The exponent b is defined as the log of the learning curve improvement rate divided by log 2.


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16 November 2012

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LIST OF VERBS USED IN THE QUESTION REQUIREMENTS

A list of the learning objectives and verbs that appear in the syllabus and in the question requirements foreach question in this paper.

It is important that you answer the question according to the definition of the verb.

LEARNING OBJECTIVE VERBS USED DEFINITION

Level 1 - KNOWLEDGE

What you are expected to know. List Make a list of

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

Define Give the exact meaning of

Level 2 - COMPREHENSION

What you are expected to understand. Describe Communicate the key features

Distinguish Highlight the differences between

Explain Make clear or intelligible/State the meaning or

purpose ofIdentify Recognise, establish or select after

consideration

Illustrate Use an example to describe or explainsomething

Level 3 - APPLICATION

How you are expected to apply your knowledge. Apply

Calculate

Put to practical use

Ascertain or reckon mathematically

Demonstrate Prove with certainty or to exhibit by

practical means

Prepare Make or get ready for use

Reconcile Make or prove consistent/compatible

Solve Find an answer to

Tabulate Arrange in a table

Level 4 - ANALYSIS

How you are expected to analyse the detail of

what you have learned.

Analyse

Categorise

Examine in detail the structure of

Place into a defined class or division

Compare and contrast Show the similarities and/or differences

between

Construct Build up or compile

Discuss Examine in detail by argument

Interpret

Prioritise

Translate into intelligible or familiar terms

Place in order of priority or sequence for action

Produce Create or bring into existence

Level 5 - EVALUATION

How you are expected to use your learning to

evaluate, make decisions or recommendations.

Advise

Evaluate

Recommend

Counsel, inform or notify

Appraise or assess the value of

Advise on a course of action


20/20


20 November 2012

CIMA Management AccountantGateway Assessment

November 2012

Tuesday Afternoon Session

G1MAGateway_nov2012_questionpaper

Documents

Transcript of G1MAGateway_nov2012_questionpaper