Quick & Easy Preparation Tips & Tricks on CA Intermediate - Cost & Management Accounting
CA-Intermediate Exams are far off, you may be thinking. But do not get carried away by such illusions. In CA-Inter, Paper 3- Cost & Management Accounting (CMA) is a practical subject and calls for intensive practice. To score good marks in this paper, you will have to adopt a systematic approach and focus on developing conceptual understand alongside solving problems. CA- Intermediate is a comparatively newer exam, introduced by ICAI under the revised scheme. And rumors have it that CA-Intermediate is a more difficult to crack than CA-IPCC, its former counterpart.
So, to make sure you clear exam smoothly in the upcoming attempt, start studying now. Not to instil fear in you or anything, clearing Cost & Management Accounting can get difficult if you do not set aside enough time for revision and mock tests. Read on to find out why, and what you can do right now to score good marks in CA-Inter Paper-3.
CA-Intermediate – Cost & Management Accounting in a Nutshell
Total marks allotted: [100 marks]
Passing Marks: [40 Marks]
i. To develop an understanding of the basic concepts and applications to establish the cost associated with the production of products and provision of services and apply the same to determine prices.
ii. To develop an understanding of cost accounting statements.
iii. To acquire the ability to apply information for cost ascertainment, planning, control and decision making.
Section 1: Overview of Cost and Management Accounting
(10% to 15% Weightage)
Unit 1: Introduction to Cost and Management Accounting
Unit 2: Elements of Cost and Preparation of Cost Sheets
Section 2: Ascertainment of Cost and Cost Accounting System
(35% to 40% Weightage)
Unit 3: Material Costs
Unit 4: Employee Costs
Unit 5: Direct Expenses
Unit 6: Overheads
Unit 7: Activity Based Costing
Unit 8: Recording and Accounting of Costs
Section 3: Methods of Costing
(25% to 30% Weightage)
Unit 9: Unit Costing
Unit 10: Job Costing and Batch Costing
Unit 11: Contract Costing
Unit 12: Operation Costing
Unit 13: Costing of Service Sector
Section 4: Cost Control and Analysis (20% to 25% Weightage)
Unit 14: Standard Costing
Unit 15: Marginal Costing
Unit 16: Budget and Budgetary Control
How to Score good marks in CA-Inter Paper- 3 Cost & Management Accounting?
Scoring well in any paper in CA-Intermediate depends on hard work and a strategic approach. When it comes to Cost & Management Accounting, students make some mistakes that cost them dearly. Let’s take a look at the common mistakes that students are prone to making, and which keeps them from doing well in this paper.
- Students start preparing late. They undermine the length and breadth of the syllabus
- Students undermine the theory portions since CMA is a practical subject
- They do not plan their study; even if they come up with a study planner, they forget about it midway
- They prepare in a haywire manner without considering the weightage of the topics
- They do not make the extra effort of maintaining a concept register
- They ‘read’ the sums from solved examples instead of practicing it hands-on
- They go for selective study, and have a tendency to skip ‘unimportant’ chapters
Preparation tips for CA Intermediate Paper 3 Cost & Management Accounting
- Get thorough with the Study Material issued by ICAI. You should keep coming back to it while practicing and revising. You can also refer to Past Year Papers during the rounds of revision. And, actually solve the problems, instead of simply reading them. In a practical paper like CMA, practice equals speed and precision.
- Make your own notes while attempting the sums. Maintaining a chapter-wise concept register will make your life easier while revisiting the sums. Also, you can revise the concept or the logic behind the problems at a glance. This will save your time and make learning effective.
- Don’t go for selective study as it will not help you. There are no such thing as ‘unimportant chapters’. Only some chapters can be said to hold more importance over others. For that, refer to the chapter-wise weightage given above and study accordingly.
- Assess your progress periodically. It is important to visualize what you learn every day. This way the sums will get engraved in your mind and facilitate long term retention. If you simply finish one chapter after another, after finishing the whole syllabus you will have to begin from day 1 again.
- Appear for at least one mock test before attempting the real exam. Mock tests are the best way to check preparedness for the exam. In any case, it is better to make mistakes before the real exam and rectify them while there’s still time.
- Do not start with new topics too close to the exam –Like we said start early, complete as much as possible and revise what you know. But don’t start with absolutely untouched topics just a few days before the exam.
Cost & Management Accounting – The importance of working notes
For papers like Cost & Management Accounting, working notes are a crucial aspect of writing answers. Not all questions will require it but for those questions that do, you must treat working notes as a part of the answer itself and not just a mere addition. Illegible and incomplete working notes will create a bad impression the examiner and invariably lead to deduction of marks. So, keep it neat and show all calculations. Do not leave anything incomplete.
Some Additional tips:
- Write to the point and correct answers in Theoretical Questions
- Try to attempt those question first, where you have complete knowledge and are confident with.
- Remember formulas by understanding their derivation. Don’t simply rote learn them.
- Keep your paper presentable.
- Begin your numerical with what is already given in the question and by stating what is required. Then proceed to your computations and working notes necessary to arrive at the solutions.
Follow the preparation tips and tricks in this blog post, and keep coming back to revisit the pointers from time to time. We are sure you will score well in CA-Inter Paper-3 Cost & Management Accounting.