Reading Time: 10 mins | Publish Date: 12 Apr 2024 | Update Date: 19 Apr 2024
How to Prepare for CIMA Operational CIMA P1 Accounting
Preparation Guide for CIMA Operational CIMA P1 Accounting
Introduction
The Chartered Institute of Management Accountants® (CIMA), founded in 1919, is the world’s leading and largest professional body of management accountants.
Passing each of the three levels of the CIMA Professional Qualification is the litmus test against which employers evaluate a candidate’s capabilities to drive organisational success.
CIMA has two grades of full membership:
- Associate – designated by the letters ACMA
- Fellow – designated by the letters FCMA
A CIMA Associate or Fellow is permitted to use the suffix letters CGMA (Chartered Global Management Accountant) after their name.
To be admitted as an Associate, a candidate must have:
- Completed a period of qualifying practice of at least two years, documented and signed by appropriate witnesses
- Passed the institute’s 16 qualifying examinations (or have a verified exemption), including 3 integrated case study exams under 2019 syllabus
To become a Fellow, a candidate ACMA must, in addition, have appropriate experience at a senior level.
CIMA helps individuals and businesses to succeed by harnessing the full power of management accounting – not just accounting for the balance sheet, but accounting for business.
Together with the American Institute of Certified Public Accountants (AICPA), CIMA established the Chartered Global Management Accountant (CGMA) designation in 2012 to provide members with a new level of resources and recognition.
The CIMA syllabus draws on the unique CGMA Global Management Accounting Principles© and CGMA Competency Framework to empower individuals with high-level abilities to help them achieve sustainable success in both business and finance.
CIMA provide continuing professional development services, fund academic research, develop thought leadership, monitor professional standards, maintain a code of ethics for members, and work with external tuition providers and assessment services to provide the best study and examination experience.
In 2017, members of CIMA and AICPA formed the Association of International Certified Professional Accountants to unite and strengthen the accounting profession globally. Representing an influential network of more than 650,000 members and students in management and public accounting, the Association prepares accountants for today’s challenges and tomorrow’s opportunities.
The CImA qualification consists of sixteen exams including three case study exam. You also need to gain three years of practical work experience.
You will gain expertise in three main areas:
- Management Accounting
- Business Management
- Financial Management
- Certificate Level
The CImA Certificate in Business Accounting is ideal for people who are new to the world of business qualification because it offers a solid grounding in the basics of management accounting, financial accounting and business and consists of 4 papers. It is also a stepping stone towards the CImA Professional Qualification.
- Operational Level
The three exams at this level introduce students to contemporary business subjects like ethics, forecasting, reporting and marketing, from an operations view.Students who pass all three operational level papers and a case study exam will be awarded the CImA diploma in management accounting.
- Management Level
The three exams at this level focus on subjects like project management, relationship management, analysis of financial accounts and budgeting. Students who pass all three management level subjects and a case study exam will be awarded the CImA advanced diploma in management accounting.
- Strategic Level
The three exams at this level build on previous knowledge and Cover Strategic Management, Risk Management and Financial Strategy.
At the Operational level, learners are expected to perform the functions of an Entry level finance professional. Companies expect finance professionals at this level to be able to leverage data and technology to breakdown medium-term decisions into short-term actionable plans. These CIMA P1 dumps will orient learners with these expectations and prepare them for their real-life roles.
In this guide, CIMA will cover the CIMA P1 practice test and CIMA P1 dumps pdf and all aspects of the CIMA Operational CIMA P1 Accounting.
Introduction to CIMA Operational CIMA P1 Accounting
CIMA Operational is the first level of the CIMA Professional qualification. After completing this level you can progress onto the Management level, then complete the Strategic level to become a chartered management accountant. You will need to have completed CIMA Certificate, AAT Professional (Level 4), or have an accountancy or finance degree.
The purpose of the CIMA P1 exam dumps is to spotlight areas of student difficulty, so that remedial measures can be taken before the chances for success are impaired. The CIMA Operational CIMA P1 Accounting is generally given by students who are interested in accounting and finance.
Topics of CIMA Operational CIMA P1 Accounting
The following topics are a part of CIMA P1 Accounting module.
- Distinguish Between The Different Rationales For Costing
- Prepare budget information and assess its use for planning and control purposes
- Analyse performance using financial and nonfinancial information
- Apply relevant financial reporting standards and corporate governance, ethical and tax principles
- Prepare information to support short-term decision-making
- Prepare information to manage working capital
- Cost Accounting for decision and control
- Budgeting and budgetary control
- Short term commercial decision making
- Risk and uncertainty in the short term
What do you learn in P1?
- Why costing is done and what it is used for, including appropriate costing methods and techniques and where digital costing might be used.
- How budgets are prepared and implemented across the organisation, the impact these have, and how techniques are applied to ensure sound short term decision making, against a backdrop of risk and uncertainty, by using appropriate risk management tools.
Understanding function and technical aspects of Distinguish Between The Different Rationales For Costing
The following will be discussed in CIMA P1 dumps:
- Plan the activities (e.g.) plan number of units to produce this year
- Make decisions regarding activities (e.g.) purchase materials required for production
- Control the activities (e.g.) control amount of materials being used for production
- Evaluate the activities (e.g.) evaluate whether more/less materials were used per unit in comparison to the original plan
- Use appropriate technologies to gather data for costing purposes, from digital and other sources.
- Apply different costing methods to produce costing information suitable for managers’ needs
- Explain costing information to operational and senior management using appropriate formats and media
- Compare different costing methods and systems to determine the most suitable for use by the organisation for different purposes
- Identify the cost information required for digital cost objects
Understanding function and technical aspects of Analyse performance using financial and nonfinancial information
The following will be discussed in CIMA P1 dumps:
- Identify information that can enable managers to review performance
- Interpret variances to review functional and organisational performance
- Identify appropriate KPIs for different functions of the organisation
- Explain company performance using KPIs
- Prepare performance reports for use by different functions and for different purposes in appropriate formats and media
Understanding function and technical aspects of Apply relevant financial reporting standards and corporate governance, ethical and tax principles
The following will be discussed in CIMA P1 dumps:
- Apply relevant IFRS in a given context, to facilitate the preparation of financial statements
- Apply the principles of corporate governance and ethics
- Identify the impact of tax regulation on transactions, decisions and profits
Understanding function and technical aspects of Prepare information to support short-term decision-making
The following will be discussed in CIMA P1 dumps:
- Identify relevant costs and benefits
- Apply appropriate techniques that support short-term decision-making
- Prepare information to support operational decisions
- Explain factors that could influence short-term decisions
- Apply appropriate techniques to deal with situations where there is risk and uncertainty
Understanding function and technical aspects of Prepare information to manage working capital
The following are a part of CIMA P1 practice exams:
- Identify appropriate sources of short-term finance and methods of short-term investments
- Explain how to manage and control working capital
- Explain working capital ratios in comparison to prior periods or to other organisations
- Identify the impact of changing working capital policies
Certification Path for CIMA Operational CIMA P1 Accounting
The CIMA Professional Qualification is suited for anybody who wants to pursue a career in finance focusing on accounting, reporting and business strategy. It is quite different than the conventional courses which concentrate more on accounting, taxation and audit.
CBAs are available for all the papers of the Certificate Level and can be taken at any time of the year, allowing students to progress through CIMA papers at their own pace.
CBA uses computers to deliver questions and receive answers. Objective test questions are used in the assessment (the most common type is multiple choice but there are other formats).
The CBA system has many benefits:
- You will receive your results immediately after you finish the assessment, because the computer can mark it instantly.
- You will receive individual performance feedback after the assessment, if you are unsuccessful this will help you to identify the areas of the syllabus where you require a better understanding of the topics.
- You can sit computer based assessment whenever you wish - you aren’t restricted to the two paper based exam sittings per year.
- You can also re-sit assessments as and when you are ready.
- CBA allows for a wide range of the syllabus to be covered so you can be confident that you have a sound grounding in business and accounting in preparation for the Intermediate level exams.
- Upon successfully completing an exam by computer based assessment you will receive a ‘Certificate of Achievement’ from the centre. Your student record will automatically be updated by CIMA and an exemption will be awarded for the appropriate paper based subject.
- CBA can be taken at any time of the year, provided that you are a registered CIMA student. However, if you are using CBA to fast track through to the Intermediate level papers you need to be aware of CIMA’s registration, exam entry and exemption deadlines.
Below is the CIMA Operational CIMA P1 Accounting
- Format: Multiple choices, multiple answers
- Length of Examination: 90 minutes
- Number of questions: 60
- Passing score: 70%
- Language: English
What is the cost of CIMA Operational CIMA P1 Accounting?
CIMA Operational CIMA P1 Accounting costs GBP 425.
Benefits of Getting the CIMA Operational CIMA P1 Accounting
The CIMA Professional Qualification is divided into three levels — Operational, Management and Strategic. Each of these levels consists of three pillars of domain knowledge — Enterprise, Performance and Financial. Passing each level of the qualification confirms a candidate’s capabilities to perform the tasks at that level in the workplace to the highest standards. When combined with the required practical experience, the CIMA Professional Qualification ensures that members are ready to support and lead their organisations, through the challenging environment of continuous change. The syllabus, assessments and practical experience requirements ensure members are not only competent in the essential accounting, finance and business-related skills, but also in the skills required to lead the finance function in a digital age. The Operational level focuses on the short term and the implementation of decisions. Learners of CIMA P1 practice exams and CIMA P1 practice test will be able to work with others in the organisation and use appropriate data and technology to translate mediumterm decisions into short-term actionable plans.
Difficulty in taking the CIMA Operational CIMA P1 Accounting
The CIMA CIMA P1 Management Accounting is a tricky little paper pass but it’s one of the more interesting papers as it builds your knowledge of Management Accounting and the various concepts involved – and, after all, this is why we are studying for the CIMA qualification!
Over half (60%) of the CIMA P1 Management Accounting is concerned with;
- Cost accounting systems
- Short-Term Decision making
CIMA P1 practice exams can be a great way to prepare for this exam. With our experts, we produced the draft blueprints that provides a clearer direction on the approach to be taken in examinations.