Management Accounting – Case Study (FLCS)

Aim

The case study aims to test the student’s ability to:

• apply strategic management accounting techniques to make and support decisions within a simulated business context.

This paper represents a new approach to assessment for CIMA. Previously, papers at the final stage have used scenarios and mini case studies, but still within the context of a specific syllabus for that subject. The syllabus content for this paper will be that for the other Final level papers, and will draw upon material already covered in the previous levels.

The aim of the case study is to integrate the material covered to date, particularly the Final level papers.

The emphasis will be on testing the higher-level skills of synthesis, analysis and evaluation, and recognises that the Chartered Management Accountant’s skill in presenting and communicating information to users is of prime importance.

The other three papers at the final level each have a specific syllabus content and will normally deal with that content within a specific context. The case study will require the student to deal with material in less structured situations and to integrate a variety of tools in arriving at a recommended solution. It is obvious that it is unlikely that there will be a single right answer to a complex business problem, and students will be expected to recognise the possible alternatives in dealing with a problem. The processes that students undertake in arriving at potential solutions are viewed as being more important than the recommendations.

Learning outcomes

Students will be required to go through these stages to prepare for, and to answer, the case:

Preparatory to the exam

• analyse and identify the current position of an organisation.;
• analyse and identify the relevant problems facing an organisation.

Case exam

• appraise possible feasible courses of action available;
• evaluate and then choose specific proposals;
• identify and evaluate priorities related to the proposals;
• prepare and present information in a format suitable for presentation to senior management.

There will be a three-hour written paper with a limited number of questions. They will normally be answered by using the form of a report, presentation or letter/memo to a variety of users. The questions will be based upon a case study issued in advance of the exam. There will be sufficient time before the exam to allow the student to undertake preparatory analysis. Further information regarding the case will be added as part of the exam paper. As a guide to the volume of material within the case it is likely to be up to fifteen sides of A4 issued in advance of the exam and up to five sides of A4 contained within the exam paper.

It should be noted again that questions will test the processes undertaken by students in dealing with the problems identified in the exam and their ability to present and communicate information. It is unlikely that preparing very detailed notes, including cramming knowledge, before the exam will be of benefit. Students should use the preparation time to become familiar with the case.