CIMA Paper 1: Management Accounting

CIMA Paper 1: Management Accounting

For a career as a management accountant the best first step is the CIMA Paper 1: Fundamentals of Management Accounting. This is the first of a set of five papers which, together, will qualify you for membership of the Chartered Institute of Management Accountants (CIMA). Employers looking for skills in strategic and financial management know that CIMA membership is a sign of high level skills that go beyond basic accountancy.

The Fundamentals of Management Accounting course forms the first step of your five-paper progression to membership of the Chartered Institute of Management Accountants (CIMA), and is the sort of qualification corporate employers seek when recruiting high-level positions.

For CIMA Paper 1 you will learn about cost determination and study the fixed and variable elements of cost, learning how to prepare 'break-even' charts and profit/volume graphs.

As you study management accounting you'll also look at the preparation of 'standard costs' for the material, labour and variable overhead elements of cost in a product or service.

As part of the Fundamentals of Management Accounting course you will also study the principles of production accounts and look at different costing and accounting systems. You will learn why organisations use budgets, examine different types of budgets, and learn to prepare them.

This course is the first step towards the CIMA Certificate in Business Accounting.

Entry Requirements

You don't need any previous experience or qualifications to enrol in our CIMA courses. That's because we believe in making home study - and a rewarding future - as accessible as possible. However, you will need a good standard of maths, and a solid grasp of English.

Where will I go from here?

With the skills you gain from this and the other papers that make up this qualification, you will be able to provide accounting, management and finance skills from a variety of roles within business. You'll be in demand for positions as diverse as systems analyst, sales manager, Chief Financial Officer or consultant, depending on your particular interests. 

What will I gain?

On completion, you'll receive the CIMA Paper 1: Fundamentals of Management Accounting qualification.

Completion of Papers 1 to 5 qualifies you for a CIMA Certificate in Business Accounting.

Awarding Body

CIMA is the world's largest and leading professional body of management accountants, with 172,000 members and students in 165 countries. The papers we offer make up the Certificate in business accounting. It is the entry level accounting qualification for students with little or no accounting background and is a recognised qualification in its own right which is valued by employers.

Assessment

In order to complete the course, you'll need to undertake three formative assessments (set by ICS) during your course and one final exam (set by CIMA).

Formative Assessment 1

  • 20 multiple-choice questions and 4 scenario-based questions

Formative Assessment 2

  • 25 multiple-choice questions and 3 scenario-based questions

Formative Assessment 3

  • A mock exam

Final Exam

  • A computer-based exam consisting of 50 questions which must be completed within 2 hours

Notes
Scenario-based questions use hypothetical scenarios to test your application of knowledge. These questions are typically multi-part.

Generally, assessments can be sent to us online via the ICS Student Community: it's the fastest way to receive your results.

The format of the exam is subject to change. The details provided are intended only as a guide and should not be regarded as definitive.

Please note that you will be required to register with CIMA to sit the exam.

What will I get?

Because we're experts in home learning, ICS knows about and offers all the support you need along the way.

You'll receive study materials that have been specially designed for distance learning by experts in your chosen field.

You'll receive CIMA approved study materials, including the CIMA Official Learning System (the only test written and endorsed by CIMA).

You'll have access to an experienced personal tutor both online and over the phone, ready to help you with guidance and motivation.

You'll also be part of the ICS Online Student Community, where you'll have access to library materials and your account information, as well as vital links with your fellow students, with the chance to discuss your work, ask questions and make new friends.

Study Period

12 months

Hours of study

130 hours

(That's equivalent to 2 ½ hours of study a week over the 12-month support period)

Support period

12 months

Course code

M02

Course cost

£229.00

Additional fees

There are CIMA registration, exam and exemption fees that are additional to your course fees:

  • CIMA Registration Fee: £63
  • Exam fees: £45 per paper
  • Exemption fees: £45 per paper

Find out more information about arranging your examinations.

See your course content

Key Topics

Cost Determination

  • Examine the idea of 'cost objects', as well as the concepts of direct cost and indirect cost. Study first-in-first-out (FIFO), last-in-first-out (LIFO) and average cost (AVCO) methods of accounting for stock and calculating stock values and related gross profit. Learn how to calculate direct, variable and full costs of products, services and activities. Consider the use of cost information in pricing decisions.

Cost Behaviour and Break-even Analysis

  • Examine the fixed and variable elements of cost using both the high-low method and the 'line of best fit' method. Learn how to prepare break-even charts and profit/volume graphs. Discover how to determine the profit-maximising sales mix for multi-product companies.

Standard Costing

  • Learn how to prepare 'standard costs' for the material, labour and variable overhead elements of cost in a product or service. Examine the reconciling of actual contribution with budgeted contribution.

Costing and Accounting Systems

  • Examine the principles of production accounts and the integration of the cost accounts with the financial accounting system. Examine job costing, batch costing and contract costing. Consider process costing and specific order costing. Study both subjective and objective classifications of expenditure, and consider the importance of tracing costs both to products/services and to responsibility centres.

Financial Planning and Control

  • Consider why organisations set out financial plans in the form of budgets, and learn how to prepare functional budgets. Discover how to prepare a 'master budget' based on functional budgets. Gain the skills to interpret budget statements and so advise managers on financing projected cash shortfalls and/or investing projected cash surpluses. Examine fixed and flexible budgets.

 

You can either pay for your Fundamentals of Management Accounting course in full or opt for a monthly payment plan.

Course fee: £229 (excluding discounts)

Or speak to one of our course advisors now for payment plans.

 

There are CIMA registration, exam and exemption fees that are additional to your course fees:

  • CIMA Registration Fee: £63
  • Exam fees: £45 per paper
  • Exemption fees: £45 per paper

Find out more information about arranging your examinations.