CA Pankaj Kumar Agrawal
A quick disclaimer before i start : My Articles doesn’t give 100% guarantee for success in exam but You’ll have to sit down, work hard & work smart. If you can stick to it, I’m damn sure you’ll definitely be able to score a good marks in the exam.
The purpose of these articles is to enable CA Final Students to achieve 100% success in CA exams.
Hello everyone, first of all, thanks a lot for giving such a favorable response to all my previous articles. Now in the same manner I would like to throw light on preparation CA Final Advanced Management Accounting i.e. Cost. “Successful completion of ‘Chartered Accountancy’ course needs smart hard work, doing hard work without understanding the concept is like driving a car without knowing the direction”
I would like would like to give some guidance on CA final Cost Paper based on my experience.
Some students have been made a concept that Cost is all about Standard Costing, Transfer Pricing and relevant costing. But there a slight difference if you have analyzed this paper properly. According to me there are lot of small topics which are easier and can be prepared with 100% accuracy in short span of time. Rather than devoting timing on preparing on these said papers (and getting it half correct in exam hall) students can easily cover small topics in a short span of time (and score 40-50 marks with full accuracy). If prepare this paper well, then surely you will awarded with exemption.
Topic wise in order of preference :-
|1. Transportation Problem|
|2. Linear Programming|
|3. PERT & CPM|
|5. Learning Curve|
|6. Developments in the Business Environment|
|7. Budget & Budgetary Control|
|8. Pricing Decision & Transfer pricing|
|9. Cost Concepts in Decision making|
|10. CVP Analysis and Decision making|
|11. Standard Costing|
While starting, you can go to practical topic like Transportation Problem, Developments in the Business Environment, Pricing Decision & Transfer pricing etc. But never ignore or try to underweight theory part, these cover 20-25 percentage of exam paper in paper 5 “AMA”.
Theory portion plays a vital role in this paper. If nothing will work, then surely theory will work in this paper. Weightage of theory portion usually remains 20-30 marks, but generally we found 16 marks of theory in every term paper. So, make your plan accordingly.
I personally recommend you to read theory portion at least one hours on daily basis then only you can able to memories and able to write in exam hall.
ABC Analysis according to trend of marks allocations
|A||Transportation Problem, Liner Programming, Network Analysis, Simulation, Learning Curve, Developments in the Business Environment||50-60 Marks|
|B||Budget & Budgetary Control, Pricing Decision & Transfer pricing, Theory portion||30-40 marks|
|C||Cost Concepts in Decision making, CVP Analysis and Decision making and Standard Costing etc||30-35 marks|
Effective Method Of Studies
Please understand the concept. The institute will not ask any irrelevant questions. All the questions are based on the concept. This correction you need to be made during the time of study. The clarity in the concept will help you for dealing such type of questions.
Following steps to be followed :-
|Step No. 1||
a) Need to have an Open mind and Understand the concept
b) First of all cover the topics mentioned in Category A & B thereafter focus on Category C. After covering the Category A & B , you would gain confidence on the subject. If you feel that you have a little space in time then accomplish the topics Category C. Category A & B is equally important.
|Step No. 2||
Sources of Preparation/Books to be referred
Recommends books :- Any good coaching notes like Sanjay Aggrawal Sir and Padhuka’s book.
b) Must read Practice manual.
c) Read revision test papers, suggested answers for Past years, this will give you variety type of questions with answer writing pattern.
1) To understand the pattern of questions and answers I would advise you to observe the answers from the scanner and ICAI suggested.
2) I personally recommend you to attempt Revision test papers, Suggested answers, Mock test papers at least one in a day. you will find variety of answers and you will never get disappointed in exam hall.
3) The above practice will consume your time. But if you are not doing in the above manner , you cannot able to handle the questions in the exam.
4) Refer only one book as more than one will create lot of confusions
|Step No. 3||
Making a good notes of concept and Share your doubts with experts, seniors and friends.
“Improve your speed by practice and revision to be able to attempt all questions in limited time”
“Focus on writing simple and correct English”
|Step No. 4||
Answer writing practice
You should test your preparation by attempting some previous exam paper, revisions test papers, mock test papers under ultimate exam condition or environment. Later on check the result of your effort and make necessary correction/modification to your study preparations. Strictly recommend for this paper.
1) As per my understanding of Cost is a requires lots of quick and logical application of mind to answer practical problems. Hence I’d suggest you to give a reading to ICAI costing study material to understand the depth and figure out the efforts and time required for preparation.
2) Lack of good presentation especially in practical paper is one of the major drawbacks for most of the students.
3) ICAI expects professional language from us. A common feedback from the Examiners was that students are generally week in English language though they are thorough in the subject. As a result, the presentation of answers does not give a brand image as of candidate at final level. This problem among many of the candidates can be overcome only by way of writing practice and also undertaking self-examinations
4) Cost, the question paper is purely practical. Therefore, you have to practice solving a good number of questions on each topic. Try to solve each problem on your own (by yourself), in spite of just auditing the solution from notebook or study material. So, Do practice on regular basis. Don’t refer to solution from your notebook or any where else.
|Step No. 5||
Make habit of good reading along with preparing notes otherwise you won’t able to cover the syllabus.
1) While reading the chapters try to highlight the important line or mark appropriate headings and sub- heading. it will help you a lot in the last days of the exams to have a quick view.
2) Don’t use different notes foe one topic. Finalize your notes before starting final examination preparation and stick with them.
|Step No 6||The most part of preparation is Revision. So, Give ample emphasis to a good revision plan. There is nothing is this world which can substitute a good revision plan.|
This is CA Final and not B.Com. Here the “Approach to the Sum” matters much more than “Numericals” that you solve. You can’t game the Paper. So, solve it the above mentioned materials .
OTHER KEY POINTS
To Score high in this paper, Keep these points in your mind while preparing for this paper.
1) Use of proper and prescribed format for presentation. Provide Total columns where applicable in accounts and costing. State currency in subjects such as costing and accounts and draw columns with double lines when time permits
2) After the Group-1 exam, first and foremost, forget about the group-1 exam-it’s a sunk gain or sunk cost not relevant in decision making.
3) Adequate Working Notes in supporting to your answers and State the assumption clearly.
4) Go through each and every topic thoroughly and understand conceptual points supporting each topic.
5) If you failed more than three times, I prefer you to replace your all the old books with new books preferably new authors.
6) Impress the valuator with the Starting answers. It should represent you caliber to give a good answer in all respects: content, neatness and presentation.
7) Avoid overwriting. Where they become inevitable, strike off and write again. Clarity is more important than neatness
8) Always leave left hand page for showing workings, assumptions and notes. Workings are a must for the answer to be valid and should be fairly elaborate. Present them parallel to the question concerned. Use last page of the booklet for rough work.
9) If there is a question for which you do know the answer but do not have the time to write it fully, write a synopsis for the answer. This should be done, if required, only at the end of the answer sheet.
10) Do not try to deceive the valuator in any subject. They are likely to be smarter than you, in which case the penalty will be high.
11) Try to mange two pens i.e. Blue and Black ink only in exam hall. Use black ink pen only for underling the key words of answers, for making columns and headings.
12) You are advised to practice such numerical questions which cover the technical points, formulas and adjustments of entire chapters.
13) Before answering any question you need to make a rough solution in your mind and then go accordingly. No need to make hurry in papers like SFM and costing as one mistake may spoil your entire efforts. In Costing you won’t get amendments very frequently, so no need to worry about amendments etc.
14) Answer the easiest question first and in that order the rest. It is preferable to answer the fewer questions correctly and fully rather than more questions answered partially in each case.
15) Just before answering each question, read the question very carefully word by word trying to make the significance of each word, atleast once. If necessary, this may repeated even three or four times, particularly in the numerical subjects.
16) Answer the theory questions preferably last in the case of numerical subjects as these can be answered correctly in shorter periods quite often.
Your professional approach and qualitative effort is the key to pass CA examination. To be a successful chartered accountant you should be able to analyze and develop an understanding of topics and to be present in good manner.
So that’s just about it! This is exactly what you have to do & more importantly, how you have to do it. I know you must feeling really good after reading all this but in order to get the desired results, its very important to follow the abovementioned steps and implement your study plans. Just reading all this, won’t do you any good.
Believe me, if you would study in this way, would be able to secure good marks in the subject.
I sincerely believe that the suggestions mentioned above would be of some help in Costing preparation.
Further, if you will need any kind of help, please feel free to ping me. Please keep in your mind the spelling of my mail id specially “agrawal” spelling while typing it.