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Important For CA -IPCC May 2016 – COST-FM

Question Paper Pattern

  • One Compulsory question of 20 Marks.
  • Six Questions of 16 Marks each out of which Five are to be attempted.
  • One Full Question of Theory achat de viagra pharmacie.
  • Each question would have one question from Cost and one from FM – be it practical or theory question.
  • 32 marks sure shot theory questions – 16 marks each from Cost and FM – Give one day of thorough study to read theory.



Important Theory topics in Cost-

  1. Cost Units
  2. Costing methods for different products and services
  3. Cost control and reduction
  4. Fixed and flexible budget
  5. Perpetual inventory system – materials
  6. Bin Card and Stores Ledger Card
  7. Waste, scrap, spoilage and defective
  8. Product and period costs
  9. Time keeping and booking
  10. Job evaluation and merit rating
  11. Labour turnover – causes and different methods
  12. Treatment of by products
  13. Treatment of overtime premium and night shift allowance
  14. Accounting of profits in incomplete contract
  15. Explicit and Implicit costs



Important Theories in FM

  1. Bridge finance
  2. Seed capital financing
  3. Debt securitisation
  4. Capital rationing
  5. Important roles of CFO
  6. Treasury management functions
  7. Virtual banking
  8. Acceleration of cash collection
  9. Value maximisation vs wealth maximisation
  10. Depository receipts – ADR, GDR and IDR
  11. Fund flow vs cash flow
  12. Return on capital employed
  13. Du pont chart
  14. MM assumptions
  15. Miller orr and Baumol Model
  16. Venture financing methods
  17. Factoring vs Forfaiting
  18. Ploughing Back of Profits
  19. Risk Return Trade off
  20. Zero Coupon Bonds
  21. Secured Premium Notes
  22. Deep Discount Bonds
  23. Convertible Debentures
  24. Cumulative Preference Shares



Practicals of Cost –

  1. Treatment of under absorption in csot accounting
  2. Machine hour rate Problem
  3. Secondary distribution Methods
  4. Operating Costing  – Bus Transport
  5. EOQ with supplier offer and stock level computation
  6. Halsey and Rowan scheme Sums
  7. Reconciliation of cost and financial profits – check last asked sum in scanner
  8. Control accounts – Non Integrated – check last asked sum in scanner
  9. Process costing simple sums on valuation of output
  10. WIP based process accounts – FIFO
  11. Joint cost apportionment and profit computation – revise all methods
  12. Bus transport service
  13. Material and labour variance
  14. Flexible budget preparation
  15. Efficiency, activity and capacity ratio.



Important Practicals for FM –

  1. Leverage – income statement preparation from given leverage ratios.
  2. Indifference EBIT and financial break even point
  3. Ratio computation – liquid ratio, proprietary ratio, operating exp ratio, gearing ratio, turnover ratios, debt equity ratio.
  4. Working capital requirement estimation
  5. Optimum credit policy decision in receivables
  6. Cash budget – simple problem
  7. Optimum capital structure practical sums
  8. WACC sums based on book value and market value
  9. Cost of equity
  10. Project evaluation under different methods and EAC concept for unequal lives.
  11. Fund Flow Statement


Suggestions for Final Day before Exam –

  1. Revise FM First, immediately after coming from the last exam.
  2. Revise all theory of FM and Cost – Uptil here, you will be able to complete portions of 60 marks of your exam.
  3. Revise Cost after this. Recall Concepts of each chapter with examples done in class.
  4. Check tricky part of each and every sum of Costing.


In the exam hall remember the following three-

1. Speed Management – keep writing the answers in full speed from very beginning, especially when you know the answers perfectly.

2. Time management – keep track in your wrist watch. Every 15 mins = 8 marks attempt

3. Presentation management – Do not overdo it and do not ignore it. Remember that,  you would be able to distinguish your answer paper amongst others only through your presentation skill.



February 14, 2017

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