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Thursday, 22 May 2014

IPCC COSTING AND FM PREPARTAION TIPS

Weightage Of Marks
Costing – 45-50 Marks
Financial Management – 50-55 Marks
Overall Weightage
Theory – 35-40 Marks
Practical – 60-65 Marks
Now Moving on to Preparation Part in Paper III
1) Start With Theory in any of the two subjects u wish, But preferablly better to start with Financial Management as it is a Practical Subject u will become confident by chosing it First.
Concentrate on the Topics which are applied in solving the problems as this enables u to solve the problems easily… along with a ability to write theory if asked in the exam
Better if U read the theory chapter wise as reading all theory at a time doesn’t work..
2) Now Let’s move on to the Order of Preference to be chosen
a) First Start with Time Value of Money (an Easy and Important one ) – Base of Financial Management as it is applied in Capital Budgeting , Capital Structure Decisions which are major topics in Fm with this u will be able to solve the problems in these two chapters easily..
b) Now Come on to Chapter IV Financing Decisions(Cost of Capital , Capital Structure Decisions , Leverages) take on the theory part and start solving problems on your own.(helps a lot)
c) After on, take Investment Decisions which also carries more weightage follow the same rule as above Study the theory and apply thereon
d) Now,You have covered with the major topics lets move on to other topics Next it is better to choose Ratio Analysis In this Formulas Play a major role as Two-Four mark questions are asked on the simple formulas and most important is Advantages of Ratio Analysis
e) Now Move on to Cash Flow and Fund Flow Analysis for CFS much efforts are not required as it will be covered in Accounts Paper I just look at Funds Flow once..
f) Now Last Part is Current Assets Managament i.e 1)Working Capital Management 2) Debtors Management
In this section in majority questions are asked on Deriving Working Capital(WC Statement) , Preparation of Cash Budget so concentrate more on these..
Overall Tips – Practice the Problems in the Practice Manuals by the Institute it is enough no other Books are required
Now Let’s Move on to Second Part Costing..
1) In Costing it is better to start with the basic concepts the problems are unpredictable i.e Start with Basic Concepts and understand the objective of the subject it will enable you to understand better the succeeding topics…
2) Now Come on to Major costs i.e Material , Labour , Overheads
in these understand the following
Materials – Control Mechanism to Prevent costs, Selection of Pricing while purchasing , Valuation Principles (FIFO,LIFO,WAM), Accounting Treatment for Material costs incurred
Labour – Cost Control Techniques , Wage Payment Methods
Overheads – Classification of Overheads ,Methods of Absorption of Overheads , Accounting and control of Overheads
3) Now , Take Methods of costing(I) i.e Job costing , Batch costing Contract costing etc.,
4) Major Questions asked in the Methods of costing are from Contract costing.,
5) Now the Last three chapters may be choosed as ur wish as choosing anyone doesn’t make any difference
Note:Important Thing to remember is that these chapters ( Standard Costing , Marginal Costing , Budgetary Control ) Carries a weightage of 20-25 Marks almost 40 % More Practice is required in these chapters
6) At Last take on the Reconciliation of Cost Accounts with Financial Accounts as a finishing Step..
Overall Tip : It is better to choose some reference book like Padhuka for Costing to score better
Hope this will be useful for u Guys
All the best for your Preparation….