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

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CIMA P1 Exam Syllabus Topics:

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

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