Operational level
P1 stresses the importance of costs and the drivers of costs in the production, analysis and use of information for decision making in organisations. The time focus of P1 is the short term. It covers budgeting as a means of short-term planning to execute the strategy of organisations. In addition it provides competencies on how to analyse information on costs, volumes and prices to take short-term decisions on products and services and to develop an understanding on the impact of risk to these decisions. P1 provides the foundation for cost management and the long-term decisions covered in P2.
Summary of syllabus
Each subject is divided into a number of broad syllabus topics.
A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.
It is essential that all topics in the syllabus are studied, as all topics will be examined. The weightings do not specify the number of marks that will be allocated to topics in the examination.
Weight Syllabus topic
30% A. Cost accounting systems
25% B. Budgeting
30% C. Short-term decision making
15% D. Dealing with risk and uncertainty
Summary of syllabus
Each subject is divided into a number of broad syllabus topics.
A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.
It is essential that all topics in the syllabus are studied, as all topics will be examined. The weightings do not specify the number of marks that will be allocated to topics in the examination.
Weight Syllabus topic
30% A. Cost accounting systems
25% B. Budgeting
30% C. Short-term decision making
15% D. Dealing with risk and uncertainty
Assessment
Format: computer based Objective Test
Availability: on demand at any of the 5000 Pearson VUE centres around the world
Length: 90 minutes
Marking: computer marked
Results: provisional result available immediately followed by confirmation no more than 48 hours later
Further information
Objective Tests are comprised of a range of items including short multiple choice questions, number entry questions, drag and drop questions and other formats. They test all component learning outcomes across the whole subject.
What do you learn at Operational Level?
The Operational level focuses on short term decision making. You’ll be able to work with others in your organisation and use appropriate data and technology to translate medium term decisions into short term actionable plans.
Part – Qualified designatory letters CIMA Dip MA
After successfully completing the level, you are awarded with the part-qualified designatory letters ‘CIMA Dip MA’ and are ready to embark upon your Management Level journey.
E1 Managing Finance in a digital world
A. Role of the finance function
B. Technology in a digital world
C. Data and information in a digital world
D. Shape and structure of the finance function
E. Finance interacting with the organisation
What do you learn in E1?
• The central role that finance plays in an organisation, and how and why technologies used impact the finance function.
• How to use and examine data collected and processed by machines to create and preserve value for organisations.
• How the finance function is structured and shaped, and how it interacts with other parts of the organisation to achieve the objectives of the whole organisation.
P1 Management Accounting
A. Cost Accounting for decision and control
B. Budgeting and budgetary control
C. Short term commercial decision making
D. Risk and uncertainty in the short term
What do you learn in P1?
• Why costing is done and what it is used for, including appropriate costing methods and techniques and where digital costing might be used.
• How budgets are prepared and implemented across the organisation, the impact these have, and how techniques are applied to ensure sound short term decision making, against a backdrop of risk and uncertainty, by using appropriate risk management tools.
F1 Financial Reporting
A. Regulatory environment of financial reporting
B. Financial statements
C. Principles of taxation
D. Managing cash and working capital
What do you learn in F1?
• Who the regulators are, what they do and why and how regulations are applied.
• How to prepare basic financial statements using financial reporting standards.
• How to distinguish between types of taxes, calculate corporation taxes and issues affecting taxation.
• What tools are used to ensure that the organisation has enough cash to ensure its continuing operations.
Operational Level Case Study
Each level of the CIMA Professional Qualification culminates in a Case Study Examination, which integrates the knowledge, skills and techniques from across the three pillars into one synoptic capstone examination.
At the Operational level, the role simulated is that of an Entry level finance professional and the capstone Case Study Examination provides a simulated context, which allows candidates to demonstrate that they have acquired the required knowledge, skills, techniques and mindset for that role.
Further detail of the Operational Case Study can be found in the Examination Blueprints
Exam pass rates
We publish up-to-date pass rates for the Professional Qualification exams every three months.
Find the latest pass rates
Blueprints
For the first time, under the updated 2019 CIMA Professional Qualification, CIMA has published examination blueprints based on the syllabus which set out what is examinable in each of the nine Objective Tests and three Case Study exams. The Blueprints are published annually, and provide information about the format, structure and weightings of the assessments.
Find Out More
Objective Tests
Format: computer based
Availability: on demand at any of the 5,000 Pearson VUE centres around the world
Length: 90 minutes
Marking: computer marked
Results: provisional result available immediately followed by confirmation no more than 48 hours later
Further information
Objective Tests are comprised of a range of items including short multiple choice questions, number entry questions, drag and drop questions and other formats. They test all component learning outcomes across the whole subject.
QUESTION 1
A company is preparing its annual budget and is estimating the number of units of Product A that it will sell in each quarter of year 2.
Past experience has shown that the trend for sales of the product is represented by the following relationship:
y = a + bx where
y = number of sales units in the quarter a = 10,000 units b = 3,000 units x = the quarter number where 1 =
quarter 1 of year 1
Actual sales of Product A in Year 1 were affected by seasonal variations and were as follows:
Quarter 1:14,000 units Quarter2: 18,000 units Quarter 3: 18,000 units Quarter 4: 20,000 units
Calculate the expected sales of Product A (in units) for each quarter of year 2, after adjusting for seasonal
variations using the additive model.
A. The expected sales for year 2 Quarter 4 was 32700 units
B. The expected sales for year 2 Quarter 4 was 32000 units
C. The expected sales for year 2 Quarter 4 was 33000 units
D. The expected sales for year 2 Quarter 4 was 40000 units
Correct Answer: B
QUESTION 2
‘A zero-based budgeting system involves establishing decision packages that are then ranked in order of their
relative importance in meeting the organization’s objectives’.
Which of the following is true regarding he difficulties that a not-for-profit organization may experience when
trying to rank decision packages.
Select ALL true statements.
A. The activities that are being proposed in a budget are described in variable packages. There will often be
more less than one decision package proposed for an activity.
B. The activities that are being proposed in a budget are described in decision packages. There will often be
more than one decision package proposed for an activity.
C. Some of these packages will be inclusive and will require operations to select the best solution to the issue
involved.
D. Some of these packages will be mutually inclusive and will require management to select the best solution
to the issue involved.
E. Each decision package is evaluated. Its costs are compared to its benefits and net present values or other
measures calculated.
F. Management may decide to reject packages even though the activity was done last year. In this way the
organization is said to be starting from a zero base with each package given due consideration.
07B13F58239056B81577933EB624485B
G. Management may decide to accept packages even though the activity was done last year. In this way the
organization is said to be starting from a 100% cost base with each package given due consideration.
H. In a public sector body, for example, decision packages will relate profit making activities.
I. In a public sector body, for example, decision packages will relate to very disparate activities.
Correct Answer: F,I,E,D,B
QUESTION 3
A company is considering whether to develop an overseas market for its products. The cost of developing the
new market is estimated to be $250,000. There is a 70% probability that the development of the new market
will succeed and a 30% probability that the development of the new market will fail and no further expenditure will be incurred.
If the market development is successful, the profit from the new market will depend on prevailing exchange
rates. There is a 50% chance that exchange rates will be in line with expectations and a profit of $500,000 will
be made. There is a 20% chance that exchange rates will be favorable and a profit of $630,000 will be made
and a 30% chance that exchange rates will be adverse and a profit of $100,000 will be made.
The profit figures stated are before taking account of the development costs of $250,000.
Use a decision tree to decide whether the company should develop an overseas market for its products.
Select one correct answer.
A. There is 70% chance that the project will fail.
B. There is 65% chance that the project will fail.
C. The overseas market should not be developed.
D. The overseas market should be developed.
E. There is a chance to make $506 000 profit.
F. There may be a loss of $110 000.
Correct Answer: D
Click here to view complete Q&A of CIMAPRO15-P01-X1-ENG exam
Certkingdom Review,
Certkingdom PDF
Best CIMA Certifications CIMAPRO15-P01-X1-ENG Certification, CIMA Certifications CIMAPRO15-P01-X1-ENG Training at certkingdom.com