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🇮🇳 CMA Intermediate · flashcards
CMA Intermediate Cost Accounting Flashcards
50 question-and-answer cards covering Cost Accounting as it is examined in CMA Intermediate. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Cost Accounting deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is 'Retention Money' in Contract Costing?
The portion of work-certified value withheld by the contractee (not yet paid) as security until satisfactory completion; Retention Money = Work Certified - Cash Received.
What is 'Notional Profit' on a contract?
Notional Profit = Value of Work Certified - (Cost of work to date - Cost of work uncertified). It is the apparent profit on the certified portion.
What proportion of profit is taken to P&L when a contract is between 25% and 50% complete?
Profit to P&L = (1/3) x Notional Profit x (Cash Received / Work Certified).
What proportion of profit is taken to P&L when a contract is 50% or more complete (but not near completion)?
Profit to P&L = (2/3) x Notional Profit x (Cash Received / Work Certified).
How is profit treated when a contract is less than 25% complete?
No profit is transferred to P&L; the entire notional profit is kept as a reserve (treated as prudence).
What is an Escalation Clause in a contract?
A clause allowing the contractor to recover increased costs (of material, labour, etc.) above an agreed level from the contractee, protecting against price rises.
What is Process Costing?
A costing method used where production is continuous and output passes through a series of processes; cost is accumulated per process and averaged over units produced.
Give two industries suited to Process Costing.
Chemicals, textiles, oil refining, sugar, paper, paint, cement, food processing (continuous mass production).
What is Normal Loss in Process Costing and how is it treated?
Normal Loss is the unavoidable, expected loss inherent in the process; its cost is absorbed by good units, and any scrap value reduces the process cost.
What is Abnormal Loss and how is it valued?
Loss exceeding the normal loss; valued at the cost per good unit = (Total process cost - scrap value of normal loss) / (Total input units - normal loss units), and charged to Costing P&L.
What is Abnormal Gain?
When actual loss is less than normal loss; the extra good output is valued at the normal cost per good unit and credited to Costing P&L.
What are Equivalent Units (Equivalent Production)?
Incomplete (WIP) units expressed as a number of fully complete units based on degree of completion, e.g., 400 units 50% complete = 200 equivalent units.
What is a Joint Product vs a By-product?
Joint products are two or more main products of significant value produced simultaneously from the same process; a by-product is a secondary product of relatively minor value arising incidentally.
What is a Budget?
A quantitative and/or financial statement of the plan and policy to be pursued during a defined future period, prepared and approved prior to that period.
What is Budgetary Control?
The system of using budgets to plan and control operations by comparing actual results with budgeted figures, analysing variances, and taking corrective action.
What is a Flexible Budget?
A budget designed to change (flex) with the level of activity attained, recognising the distinction between fixed and variable costs — unlike a fixed budget.
What is a Master Budget?
The summary budget consolidating all functional/subsidiary budgets, culminating in a budgeted P&L and Balance Sheet for the organisation.
What is Zero-Based Budgeting (ZBB)?
A budgeting technique where every activity must be justified from a 'zero base' each period rather than basing it on previous budgets/actuals.
What is the Principal (Key) Budget Factor?
The factor that limits the activities of an organisation (e.g., sales demand, raw material, capacity); it must be identified first as all other budgets are prepared around it.
What is Standard Costing?
A technique of setting predetermined (standard) costs, comparing them with actual costs, and analysing variances to control costs and measure performance.
What is a Standard Cost?
A predetermined cost computed in advance of production, based on expected efficient conditions, used as a benchmark against actual cost.
What is the Material Cost Variance and its formula?
The difference between standard cost of materials for actual output and actual cost. MCV = (Std Qty x Std Price) - (Actual Qty x Actual Price).
State the formulas for Material Price Variance and Material Usage Variance.
MPV = Actual Qty x (Std Price - Actual Price); MUV = Std Price x (Std Qty for actual output - Actual Qty). MCV = MPV + MUV.
State the formulas for Labour Rate Variance and Labour Efficiency Variance.
LRV = Actual Hours x (Std Rate - Actual Rate); LEV = Std Rate x (Std Hours for actual output - Actual Hours). Labour Cost Variance = LRV + LEV.
What this deck covers
The Cost Accounting deck follows the CMA Intermediate Cost Accounting syllabus — 3 chapters and 8 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 16.7 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 144 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Cost Accounting flashcards FAQ
How many Cost Accounting flashcards are in this CMA Intermediate deck?
50 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these CMA Intermediate flashcards free?
Yes. The preview here is free to read with no signup, and the full 50-card deck is free inside the Examius app.
What do the Cost Accounting cards cover?
They follow the CMA Intermediate Cost Accounting syllabus — 3 chapters and 8 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.