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Understanding function and technical aspects of Prepare information to support short-term decision-making

The following will be discussed in CIMA P1 exam dumps:

  • 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
  • Identify relevant costs and benefits
  • Apply appropriate techniques that support short-term decision-making

Reference: https://www.cimaglobal.com/Qualifications/Professional-Qualification/Operational-level/

Understanding function and technical aspects of Prepare information to manage working capital

The following are a part of CIMA P1 practice exams:

  • Explain working capital ratios in comparison to prior periods or to other organisations
  • Explain how to manage and control working capital
  • Identify appropriate sources of short-term finance and methods of short-term investments
  • Identify the impact of changing working capital policies

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CIMA P1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Short-term Decision Making- Decision techniques
  • 1. Make or buy decisions
    • 2. Limiting factor analysis
      - Relevant costing principles
      • 1. Opportunity cost analysis
        • 2. Relevant vs irrelevant costs
          Topic 2: Cost Accounting for Decision and Control- Costing systems
          • 1. Activity-based costing (ABC)
            • 2. Absorption vs marginal costing
              - Cost classification and behavior
              • 1. Cost estimation techniques
                • 2. Fixed, variable, and semi-variable costs
                  Topic 3: Risk and Uncertainty in Decision Making- Risk evaluation methods
                  • 1. Sensitivity analysis
                    • 2. Expected values
                      Topic 4: Budgeting and Management Control- Budget preparation
                      • 1. Cash budgets
                        • 2. Functional budgets
                          - Budgetary control systems
                          • 1. Variance analysis basics
                            • 2. Flexible budgeting

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