Introduction to ICAP (PAK) CA - Cost and Management Accounting

1. COST & MANAGEMENT
ACCOUNTING
BY
SIR ABDUL AZEEM
ICAP CAF-03

2. ICAP CAF-03
AGENDA FOR TODAY
1. Challenges in CMA exam
2. Aim of the paper
3. Background knowledge required
4. Syllabus Outline and topics
5. Past Paper Analysis
6. Study Material
7. Online Class Package
8. Tentative Schedule of lectures, live Sessions and Tests
9. Interaction with Teachers
10. Whom to Contact (in case of problem)
11. Exam Tips

3. ICAP CAF-03
1) Challenges in CMA
a) Starting point of solution
b) Length of syllabus
c) Very lengthy paper so incomplete paper attempt.
d) Excessive use of mathematical tricks

4. ICAP CAF-03
Cost and Management Accounting
AIM OF THE PAPER
(COMPETENCY)

5. ICAP CAF-03
2) Aim of the paper

6. ICAP CAF-03
Cost and Management Accounting
BACKGROUND KNOWLEDGE REQUIRED

7. ICAP CAF-03
3) Background knowledge
From Quantitative Methods (QM)
❑ Profit mark up and profit margin percentages
❑ Finding unknown figures by using ratio, proportion and
percentages
❑ Simple linear equation and
❑ Simultaneous equations

8. ICAP CAF-03
3) Background knowledge
From Introduction to Accounting
❑ Identification of assets, liabilities, incomes and expenses (also
known as cost)
❑ Rules of debit and credit
❑ Recording Journal entries and posting into ledger
❑ Elements of product cost, direct and indirect costs,
❑ Fixed cost, variable costs and semi-variable costs, prime cost,
conversion cost.

9. ICAP CAF-03
Cost and Management Accounting
SYLLABUS OUTLINE & TOPICS

10. ICAP CAF-03
4) Syllabus outline and Topics

11. ICAP CAF-03
4) Syllabus outline and Topics
Grid A: Cost Associated with Production
0 – Basics of CMA
Chapter 1 – Inventory valuation
Chapter 3 – Accounting for overheads
Chapter 4 – Activity Based Costing
Chapter 5 – Accounting for labour
Chapter 10 – Marginal & absorption costing
Grid B: Cost Flow
Chapter 6 – Cost flow production
Chapter 7 – Job order and service costing
Chapter 8 – Process costing
Chapter 9 – Joint & By product accounting
Chapter 11 & 12 – Standard costing and variances
Chapter 13 – Target costing
Grid C: Cost Management Planning & Decisions
Chapter 2 – Inventory Management
Chapter 14 – Cost volume profit analysis
Chapter 15 – Relevant Costing Principles
Chapter 16 – Decision making techniques

12. ICAP CAF-03
Cost and Management Accounting
PAST PAPER ANALYSIS

13. ICAP
5) Past paper analysis – Chapter wise
CAF-03
Q M Q M Q M Q M
Ch # 1 - Inventory Valuation
7 15 15
Ch # 3 - Overheads 1, 4 15 5 8 4 8 9 16 47
Ch # 4 - Activity Based costing 0
Ch # 5 - Labor costing 3 8 1 8 16
Ch # 6 - Cost flow in production 9 15 15
Ch # 6 - Job and service costing 0
Ch # 10 - Marginal costing and absorption costing 3 9 8 17 3 10 36
39 33 26 31 129 32%
Ch # 8 - Process costing 7 19 9 14 7(a,c) 8 8 20 61
Ch # 9 - Joint and by-product accounting 7(b) 8 8
Ch # 11 & 12 - Standard costing & Variance analysis 2 9 6 8 8 19 3 8 44
Ch # 13 - Target costing 2 7 7
28 29 35 28 120 30%
Ch # 2 - Inventory Management 8 13 1 8 2&5 18 2,4 14 53
Ch # 15 - Relevant Costing Principles
5 10 1 10 20
7 20 9 14 5 10
6 7
Ch # 14 - Cost-volume-profit (CVP) analysis 6 10 4 10 6 7 27
33 38 39 41 151 38%
100 100 100 100 400
Total
Marks %
Ch # 16 - Decision Making
Chapters SP 22
Model Paper AU 22 SP 23
Grid A: Cost associated with production (35 - 45)
Grid B: Cost Flow (20 - 30)
Grid C: Cost management, planning and Decisions (30 - 40)
51

14. ICAP
5) Past paper analysis – Marks wise
CAF-03
Model Paper SP 22 AU 22 SP 23
Marks Marks Marks Marks
19 14 16 20 69
10 20 14 27 71
13 8 18 14 53
42 42 48 61 193 48.3%
15 8 8 16 47
9 8 19 8 44
Marginal and absorption costing 9 17 10 0 36
10 10 7 0 27
43 43 44 24 154 38.5%
8 8 0 16
15 15
15 0 15
7 0 7
0 0
15 15 8 15 53 13.3%
100 100 100 100 400 100.0%
Labour costing
Cost flow in production
Target costing
Job order and service costing
Cost volume profit analysis
Super Important Topics
Important Chapters / Areas
Slightly Less Important Chapters / Areas
Inventory valuation
Overheads/Actvity Based costing
Standard costing & Variance analysis
Inventory management
Total
Marks %
Relevant costs & Decision Making
Process costing & Joint By Product

15. ICAP CAF-03
Cost and Management Accounting
STUDY MATERIAL

16. ICAP CAF-03
6) Study Material
1) Video lectures
2) CAF3 Lecture notes
3) From old CAF-08:
 Use of Past papers for selected topics
 Use of Examiner’s comments of selected topics
 Use of Marking plan of selected past papers
4) ICAP papers for CAF-03
 Model paper
 Spring 2022
 Autumn 2022 CAF-03
5) ICAP Study text for CAF-03

17. ICAP
Cost and Management Accounting
ONLINE CLASS PACKAGE
(WHAT IS INCLUDED?)
CAF-03

18. Voice Discussion Sessions
Issues in Recorded lectures
(Zoom live)
Frequent Live Sessions
4
Save Time, Deliver more in less time
Purposefully built and recorded lectures
Bit size learning
Customised Video Lectures
1
Dedicated access to teacher, TAs & Other
Class mates
Fastest and easiest mode (with voice notes)
(Whatsapp)
24/7 Access to teacher
2
Hard copy of handouts relating to all Lectures
Mind Maps / Handouts
5
Weekly tests including 1 mid term and 1 final
mock
Dedicated team of Experienced Individuals
At test.canotes.net
Weekly testing system
3

19. ICAP
Cost and Management Accounting
TENTATIVE SCHEDULE OF LECTURES,
LIVE SESSION & TESTS
CAF-03

20. ICAP
8) Tentative weekly Schedule of CMA (CAF-03)
CAF-03
CAF 03 (CMA) - Pre-result - Tentative Weekly Schedule at Nearpeer inshaALLAH
Contents to be covered Tests Live Session
27-Mar to 01-Apr
Module 1: Introduction to paper
Module 1: Chapter 1 - Basics of CMA
03-Apr to 08-Apr Module 2 - Chapter 2 - Inventory Valuation 8-Apr-23 9-Apr-23
10-Apr to 15-Apr Module 2: Chapter 3 - Accounting For labour cost
17-Apr to 22-Apr Module 2: Chapter 4 - Accounting for FOH 22-Apr-23 23-Apr-23
24-Apr to 29-Apr Module 3: Chapter 5 - Actvity Based Costing
01-May to 06-May Result week
08-May to 13-May Module 3: Chapter 6 - Marginal & Absorption costing 13-May-23 14-May-23
15-May to 20-May Module 3: Chapter 7 - Target Costing
22-May to 27-May Module 4: Chapter 8 - Relevant Costing Principles 27-May-23
29-May to 03-Jun Module 4: Chapter 9 - Short term Decision Making
Relevant Week

21. ICAP
CAF 03 - Tentative weekly Schedule
CAF-03
CAF 03 (CMA) - Pre-result - Tentative Weekly Schedule at Nearpeer inshaALLAH
05-Jun to 10-Jun Module 4: Chapter 9 - Short term Decision Making 10-Jun-23 11-Jun-23
12-Jun to 17-Jun Module 4: Chapter 10 - Inventory Management
19-Jun to 24-Jun Module 4: Chapter 11 -Cost volume profit Analysis 24-Jun-23 25-Jun-23
26-Jun to 01-Jul Module 5: Chapter 12 - Job order costing & Process Costing 1-Jul-23
03-Jul to 08-Jul Module 5: Chapter 13 - Joint and By product Accounting 8-Jul-23 9-Jul-23
10-Jul to 15-Jul Module 5: Chapter 14 - Standard Costing and variance Analysis 15-Jul-23
17-Jul to 22-Jul Module 5: Chapter 15 - Cost Flow production (Cost accounting entries) 22-Jul-23
24-Jul to 29-Jul Live Revision
31-Jul to 05-Aug Live Revision
07-Aug to 12-Aug Full Mock 12-Aug-23
14-Aug to 19-Aug Personal Revision
21-Aug to 26-Aug Personal Revision

22. ICAP
CAF 03 - Tentative weekly Schedule
CAF-03
20-Feb to 25-Feb Personal Revision
27-Feb to 4-Mar Personal Revision
6-Mar to 11-Mar ICAP Exams
CAF 03 (CMA) - Pre-result - Tentative Weekly Schedule at Nearpeer inshaALLAH

23. ICAP
Cost and Management Accounting
INTERACTION WITH TEACHERS
CAF-03

24. ICAP
9) Interaction with teacher
CAF-03
Cell # 03304534503

25. ICAP
Cost and Management Accounting
CONTACT TO WHOM
(IN CASE OF PROBLEM)
CAF-03

26. ICAP
10) Contact to Whom (in case of problem
Website
Issues
Representative
0349-7331076
0322-4330393
Missing videos
or missing
chapters
Mr. Rehan
Sarwar
0332-4330393
Test Guidance
Mr. Hafeez
Baig
0324-4922886
Overall
Support
Mr. Jahanzaib
0333-4748659
CAF-03

27. ICAP
Cost and Management Accounting
EXAM TIPS
CAF-03

28. ICAP CAF-03
11) Exam Tips
❑ Plan your study properly and strictly follow provided weekly schedule.
❑ Practice to present your answer in a logical approach with proper steps and
workings.
❑ Focus on basic concepts and purpose of each topic
❑ Complete your syllabus prior to revision sessions.
❑ Use assumed figures if stuck anywhere.
❑ Efficient time management is the key to success.

29. ICAP CAF-03
Cost and Management Accounting