Module Materials
Broadband, Core Text: " Corporate Financial Management, 5th Edition" by Glen Arnold
Module Content
P1 MF Section 8 Management Accounting in Decision Support
1 Balanced Scorecard

2 Question 5 August 2012

3 Question 3 April 2012

4 Linear Programming using ACCA example

5 Profit Maximation Model

6 Relevant Costing

7 Target Costing

8 Standard Costing Examiner Article

9 Standard Costing Question 2 August 2011

10 Standard Costing Question 2 August 2012

11 Relevant Costing Question 5 August 2011

12 Break Even Analysis

13 Limiting Factors

14 Activity Based Costing

15 Question 2 August 2010

16 (SPM) Variances, Interdependencies and Investigation

17 (SPM) Materials Usage Mix & Yield Variances

18 (SPM) Sales Volume, Mix & Quantity (Yield) Variances

19 (SPM) Using Variance Analysis

20 Revising a Budget and Planning & Operational Variances

21 SPM Past Papers S2 August 2014 Q1a Materials Mix & Yield

22 SPM Past PapersS2 August 2014 Q1b  Sales Volume, Market Size & Market Share Variance

23 SPM Past PapersS2 April 2013 Q2  Reconciling Budgeted to actual profit using Advanced Variances
 1 Balanced Scorecard
 2 Question 5 August 2012
 3 Question 3 April 2012
 4 Linear Programming using ACCA example
 5 Profit Maximation Model
 6 Relevant Costing
 7 Target Costing
 8 Standard Costing Examiner Article
 9 Standard Costing Question 2 August 2011
 10 Standard Costing Question 2 August 2012
 11 Relevant Costing Question 5 August 2011
 12 Break Even Analysis
 13 Limiting Factors
 14 Activity Based Costing
 15 Question 2 August 2010
 16 (SPM) Variances, Interdependencies and Investigation
 17 (SPM) Materials Usage Mix & Yield Variances
 18 (SPM) Sales Volume, Mix & Quantity (Yield) Variances
 19 (SPM) Using Variance Analysis
 20 Revising a Budget and Planning & Operational Variances
 21 SPM Past Papers S2 August 2014 Q1a Materials Mix & Yield
 22 SPM Past PapersS2 August 2014 Q1b  Sales Volume, Market Size & Market Share Variance
 23 SPM Past PapersS2 April 2013 Q2  Reconciling Budgeted to actual profit using Advanced Variances
P1 MF Supplementary Resources
MF The nature, elements and importance of working capital.

MF Working Capital Cycle Calculation.

MF Managing Inventories.

MF Inventory Calculations 1.

MF Inventory Calculation 2.

MF Managing Accounts Receivable (AR) 1.

MF Managing Accounts Receivable (AR) 2.

MF Accounts Rec Calculation.

MF Managing Accounts Payable .

MF Accounts Payable Calculation.

MF Managing Cash.

MF Cash Management Question.

MF Introduction to Capital Appraisal .

MF Payback Period .

MF Return on Capital Employed.

MF Net Present Value.

MF Internal Rate of Return.

MF Allowing for Inflation and Taxation in Capital Appraisal .

MF Calculation of Reducing Balance and StraightLine Depreciation.

MF Capital Appraisal Calculation 1.

MF Capital Appraisal Calculation 2 .

MF Specific Investment Decisions – Lease or Buy .

MF Sources of Finance  Debt.

MF Sources of Finance  Equity.

MF Rights Issue and TERP Calculation.

MF Business Finance Calculation.

MF Dividend Policy.

MF Estimating Cost of Capital Introduction.

MF Estimating Cost of Equity – Dividend Models.

MF Estimating Cost of Equity – (CAPM).

MF Gearing and its effects.

MF Calculating the Cost of Debt.

MF Weighted Average Cost of Capital.

MF Cost of Capital Calculation 1.

MF Cost of Capital Calculation Ungearing and Regearing.

MF Business Valuation.

MF Business Valuation Calculation 1.

MF Market Efficiency.

MF Cash Operating Cycle.

MF Company Valuation.

MF Revision Money Market Hedge on a Sale.

MF Discount Policy Decisions.
 MF The nature, elements and importance of working capital.
 MF Working Capital Cycle Calculation.
 MF Managing Inventories.
 MF Inventory Calculations 1.
 MF Inventory Calculation 2.
 MF Managing Accounts Receivable (AR) 1.
 MF Managing Accounts Receivable (AR) 2.
 MF Accounts Rec Calculation.
 MF Managing Accounts Payable .
 MF Accounts Payable Calculation.
 MF Managing Cash.
 MF Cash Management Question.
 MF Introduction to Capital Appraisal .
 MF Payback Period .
 MF Return on Capital Employed.
 MF Net Present Value.
 MF Internal Rate of Return.
 MF Allowing for Inflation and Taxation in Capital Appraisal .
 MF Calculation of Reducing Balance and StraightLine Depreciation.
 MF Capital Appraisal Calculation 1.
 MF Capital Appraisal Calculation 2 .
 MF Specific Investment Decisions – Lease or Buy .
 MF Sources of Finance  Debt.
 MF Sources of Finance  Equity.
 MF Rights Issue and TERP Calculation.
 MF Business Finance Calculation.
 MF Dividend Policy.
 MF Estimating Cost of Capital Introduction.
 MF Estimating Cost of Equity – Dividend Models.
 MF Estimating Cost of Equity – (CAPM).
 MF Gearing and its effects.
 MF Calculating the Cost of Debt.
 MF Weighted Average Cost of Capital.
 MF Cost of Capital Calculation 1.
 MF Cost of Capital Calculation Ungearing and Regearing.
 MF Business Valuation.
 MF Business Valuation Calculation 1.
 MF Market Efficiency.
 MF Cash Operating Cycle.
 MF Company Valuation.
 MF Revision Money Market Hedge on a Sale.
 MF Discount Policy Decisions.
Hi All. Closing in on exam day now so make your revision count.
Three tips:
1. Make sure you have covered that recent examiners article thoroughly. (See below)
2.Answer your best question first in the exam.
3.Watch your timing. Only allow 1.8mins per mark and break that down for each part of each question. Say your piece and move on.
Any last minute queries? Come straight back to me. Tena
Hi all,
Please see the following article from Joe Molumby, Examiner, P1 Managerial Finance. He looks here at the deficiencies of traditional performance measurement systems and demonstrates how the Balanced Scorecard (BSC) method attempts to overcome these deficiencies.
While there are no guarantees, previous articles have been seen on subsequent exam papers so ignore at your peril!!
http://www.cpaireland.ie/docs/defaultsource/cpainternationaldocs/p1mfperformancemanagementframeworksaneedforadaptation.pdf?sfvrsn=2
Good Evening, Are there any plans to review & do a revision tutorial on the April & August 2017 past papers?
I have a query in relation to Question 1 on the August 2017 paper which I am having difficulty with. Thanks
Hi Teresa. Just let me know what your query was and I will work through it with you. Tena
Thank you Tena,
I actually have two queries in relation to Question 1. The Suggested solution Purchases figure.. I don’t get where the 40% of sales figure is coming from ?
If the mark up is 150%, therefore if the purchases are for sufficient for the first 3 months sales, should the purchases amount not be (sales amount €216,000/150*100)= €144,000.
Also the overdraft interest figure.. I was unsure of where this came from, however as I got caught in the Purchases side I may have missed on something relating to this.
Thanks I’d appreciate the help
Regards
Teresa
Hi Teresa. Mark up is 150%. So cost of sales (purchases) plus 150% = sales.If the markup up is 150%, the margin is 40%. For example, if purchases were 100, sales would be 250. So purchases would be 100/250 = 40%.
Have a look at this it might help on this type of question.
Markup is the percentage of Cost of Sales that is added on as profit to give us our sales price.
To find Sales from cost of sales: Sales = Cost of sales x (100% + the Mark up%)
To find Cost of sales from sales: Cost of Sales = Sales/ (100% + the Mark Up%)
Margin is the percentage of Sales that is profit.
To find Sales from cost of sales: Sales = Cost of sales/ (100% – the margin%)
To find Cost of sales from sales: Cost of Sales = Sales x (100% – the margin%)
Does that help on the first one? Tena
Thanks so much for the response, yes this really does help & explains it. I think I got a big bogged down in thinking of it in the wrong way & couldn’t see past it.
Delighted to help. Keep in touch. Tena
No Teresa I don’t think you have missed something ref overdraft. In the first instance, the question does not tell you anything about the charge on the overdraft at all so you actually could not have been expected to calculate it.
Even, at a stretch, if you assume that similar terms stand as for the bank loan (7.5% based on the first quarter maybe) you do not get that answer. This is a typo and the answer does not reflect the information in the question. I know that does not help!!!! But unfortunately it does happen. Tena
Excellent thanks Tena, At least I know I am on the right path as even though I felt a lot of information in this question apart from these two queries I had the all the other calculations correct.( now just to get the timing correct with a bit more practice.)
As a new and welcome addition to the support resources for your CPA F2 and P1 exams CPA has added Revision Quizzes which can be accessed through your MyCPA page. These will be useful during your studies and especially now as the examination dates draw closer.
For details see here:
http://www.cpaireland.ie/students/studysupport/quizzes
Enjoy and come back to me with any queries, Tena
Attention Students:
The following errata have been noted on the CPA sample answer for August 2011 Q1 available in the Managerial Finance Tutor Manual pages 8587 :
The correct loan amount of €25,000 has been changed in error to €24,000 for interest calculations.
The original incoming loan amount should certainly be in the February column.
With regard to calculation 4, the totals only are in the wrong columns. For example, the €2340 should be in the February column, €4290 in the March column.
To clarify, the January costs are paid 60% in February and 40% in March, so the timing of the calculations is correct, only the totals are incorrectly timed.
New material has been added to the course. Material was sourced from our Strategic Performance Management course and inputted into section 11 of Managerial Finance in order to provide students with extra assistance on Variance Analysis topic also studied at P2 level of Strategic Performance Management. Those addons can be recognized by their title beginning with letters “SPM”. Corresponding notes are also available to download from Section 11.
Please ensure that you have viewed the Dec 2016 article on Working Capital Management
http://www.cpaireland.ie/students/studysupport/professional1/p1managerialfinance/p1managerialfinancewebinars