How to Prepare for Strategic Cost Management and Performance Evaluation: CA Final Subject-wise Tips
Clearing CA final examination could certainly be a life-changer but each step leading towards this big, audacious goal needs to be strong and steady. CA final subject-wise tips are designed to help you with each subject for a better chance at making the cut.
Preparing for CA Final SCM and PE is no child’s play. One has to be thorough in one’s concept and dedicated in one’s practice while keeping the below mentioned CA Final SCM and PE tips in mind:
- What’s new: Comparison of CA Final SCM & PE new vs old syllabus
- How to study for CA Final SCM and PE
- How to score well in CA Final SCM and PE
- Online resources to prepare for CA Strategic Cost Management and Performance Evaluation
What’s new: Comparison of CA Final SCM & PE new syllabus v/s old syllabus
CA Final Strategic Cost Management and Performance Evaluation under new syllabus is quite different from the old syllabus (AMA). It not only includes strategic aspects of management accounting but also includes performance management and behavioral management accounting. Emphasis is laid on practical approach more than a theoretical one.
- Removal of 4 chapters (Assignment, Transportation, Simulation and PERT/CPM) from the old syllabus
- Linear programming and learning curve will be clubbed with costing concepts and will come as a case study question
- “Case Study” based questions have been introduced involving the application of different costing concepts and 2 QT chapters
- Five new theory chapters have been added
- New Practical topics related to cost management in agriculture, IT and power sector have been introduced.
- New sub-topics have been added in Performance Evaluation topic
- Pricing decision now includes questions on sensitivity analysis
- No change in Relevant Costing, Marginal Costing, and Transfer Pricing.
How to study CA Final Strategic Cost Management and Performance Evaluation
- While you need to study each and every topic, here are the important topics to set your priority:
- Decision making, CVP Analysis, Pricing decisions (~25 to 30 marks)
- Transfer Pricing (~10 marks)
- Standard costing (~8 marks)
- Budget (~8 marks)
- Transportation, Assignment (~10 marks)
- CPA & PERT (~10 marks)
- Linear Programming (~8 marks)
- Before starting your preparation for this subject, revise Cost & Management Accounting and Strategic management. This will help you to understand the concepts for SCM & PE quickly
- Begin your preparation with the ICAI study material. You cannot skip it at any cost. You have to go through it irrespective of whatever other resources you are referring to
- Ensure you are thorough with your concepts. Consult a mentor if any topic bugs you. You need conceptual clarity for answering case-based questions.
- Practice case study/case scenarios well. These have weightage of around 20% -30% marks and are generally asked to assess contemporary topics
- The objective of case study is to apply ideas and insights from theory to real life situations.Case scenarios are short cases covering a specific area. So, for case study, you need to give a holistic analysis whereas for case scenarios, more in-depth analysis is required
- Make your own noteswith key points for quick revision
- Make your timetable and fix your daily targets
- You need not be a master in all topics but if asked in examination, you should also not go blank on any topic
- Practice sums and questions from practice manual. Eventually you must be able to solve the questions without looking at the solutions. Make a note of your strengths and weaknesses
- Refer to videos wherever you feel stuck.
- Do go through suggested answers by ICAI. This will help you to understand what is expected in the examination. Try to use a similar way of presentation in examination
How to score well in CA Final Strategic Cost Management and Performance Evaluation
- ICAI gives 15 minutes to students to read the paper. These 15 minutes are extremely crucial and if utilized properly can definitely help you to score well. Use this time as following:
- Read the entire paper properly.
- Prioritize the questions in the order of your confidence in each
- Decide how much time you will give to each question. Try to have 10 minutes for revision.
- While answering case studies:
- Prepare a plan for each issue and decide what models to use
- Identify alternative actions which could be taken
- Give a detailed analysis of the issue
- Conclude with recommendations. It should include what, why and how
- Do not spend a lot of time on calculations. If you get stuck, move on to other questions that you are sure about
- Start every question from a fresh page and write all the parts of one question in the same place.
- Ensure your answers are numbered properly corresponding to relevant questions
- Try not to scribble on the first two pages of the answer sheet
- The questions and cases are based on skill assessment. So read carefully and answer as per requirement of the question.
Online resources to prepare for CA Final Strategic Cost Management and Performance Evaluation
- Syllabus & study material:https://www.icai.org/post.html?post_id=13815
- Additional case studies:https://www.icai.org/post.html?post_id=14504
- Additional case scenarios:https://www.icai.org/post.html?post_id=14505
- Additional questions:https://www.icai.org/post.html?post_id=14506
- Quick revision capsule:https://resource.cdn.icai.org/49180bos080318b.pdf
Revision Test Papers
- May 2019 English:https://resource.cdn.icai.org/53954bos43332-rtpfinalmay19-5.pdf
- May 2019 Hindi:https://resource.cdn.icai.org/54949bosrtpfnewhm-p5.pdf
Mock Test Papers
- Answers: https://resource.cdn.icai.org/54908bos44098a.pdf
- Questions: https://resource.cdn.icai.org/55225bos44438finalnewp5-q.pdf
- Answers: https://resource.cdn.icai.org/55224bos44438finalnewp5-a.pdf
Previous Year Question Papers
- Nov 2018: https://resource.cdn.icai.org/52619bos42154finalnew-nov18-p5.pdf
- May 2018: https://resource.cdn.icai.org/50198bos39790-finalp5-new.pdf
- Nov 2018: https://resource.cdn.icai.org/54573bossugansnov18finalp5.pdf
- May 2018: https://resource.cdn.icai.org/50934bos40583-p5.pdf
Frequently asked questions:
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