CIMA Flashcards

All 48 terms

CIMA

The Chartered Institute of Management Accountants, the UK-founded professional body behind the qualification.

CGMA

Chartered Global Management Accountant: the designation awarded after completing the exams, the experience requirement and membership.

AICPA & CIMA

The combined association of the AICPA and CIMA that awards the CGMA Professional Qualification.

Certificate in Business Accounting (Cert BA)

The four-paper entry-level certificate (BA1-BA4) and the open door into the professional qualification.

Objective Test

A 90-minute, on-demand, computer-marked exam; one per pillar at each level.

Case Study exam

The 3-hour, human-marked capstone at the end of each level, based on a pre-seen company.

Pre-seen material

The fictional-company pack released before each Case Study window; the exam is set inside that company.

Operational level

The first professional level, focused on short-term implementation; completing it earns the CIMA Diploma in Management Accounting.

Management level

The middle level, focused on medium-term performance; completing it earns the CIMA Advanced Diploma in Management Accounting.

Strategic level

The final level, focused on long-term direction, ending with the Strategic Case Study.

Enterprise pillar (E)

The pillar covering how organisations are structured, managed and transformed.

Performance pillar (P)

The management accounting pillar: costing, budgets, decisions, risk and investment.

Financial pillar (F)

The pillar covering financial reporting, analysis and financial strategy.

Gating rule

The requirement to pass all three of a level's Objective Tests (or hold equivalences) before its Case Study.

PER

Practical Experience Requirement: three years of verified relevant work experience needed for membership.

ACMA, CGMA

The designatory letters used by CIMA members holding the CGMA designation.

Finance Leadership Program (FLP)

The subscription-based alternative route that replaces the Objective Tests with guided learning; the Case Studies remain.

Exemption

Credit for prior qualifications that removes specific exams; CIMA charges no fee for exemptions.

Scaled score

The 0-150 reporting scale: 100 passes an Objective Test, 80 passes a Case Study.

Case Study window

One of four annual sittings (February, May, August, November) for Case Study exams.

Finance business partnering

Finance professionals working alongside managers to shape operational and commercial decisions.

Robotic process automation (RPA)

Software that automates high-volume, rule-based, repetitive tasks such as invoice matching.

Data analytics

Turning data into insight; spans descriptive, diagnostic, predictive and prescriptive analysis.

ERP system

Enterprise resource planning software that integrates data and processes across functions in one system.

Direct cost

A cost traceable in full to a specific cost unit, such as the materials in a product.

Indirect cost (overhead)

A cost that supports production generally and cannot be traced to a single cost unit.

Fixed cost

A cost that stays constant in total as activity changes, within a relevant range.

Variable cost

A cost that varies in total in line with activity, staying roughly constant per unit.

Contribution

Sales revenue minus variable costs: what each sale contributes toward fixed costs and profit.

Breakeven point

The activity level at which contribution exactly covers fixed costs, so profit is nil.

Margin of safety

How far sales can fall below the budgeted or actual level before reaching breakeven.

Marginal costing

Valuing inventory at variable cost and treating fixed production overheads as period costs.

Absorption costing

Including fixed production overheads in inventory values as part of product cost.

Standard costing

Setting predetermined unit costs and analysing variances between standard and actual results.

Variance analysis

Breaking the gap between budgeted and actual results into causes such as price and usage.

Flexed budget

The original budget restated at the actual activity level so like is compared with like.

Relevant cost

A future, incremental cash flow that changes as a result of the decision being taken.

Transfer price

The price charged when one division sells to another; good designs keep divisional and group interests aligned.

Responsibility centre

A unit whose manager is accountable for costs, profit or investment, matching what they control.

Net present value (NPV)

A project's discounted cash inflows minus discounted outflows; a positive result adds value.

IFRS

International Financial Reporting Standards, issued by the International Accounting Standards Board.

Accruals basis

Recognising income and expenses when earned or incurred, not when cash moves.

Working capital

Current assets minus current liabilities: the funds tied up in day-to-day trading.

Cash operating cycle

Inventory days plus receivables days minus payables days: how long cash is tied up in operations.

Consolidated financial statements

Group accounts presenting a parent and its controlled subsidiaries as a single entity.

Goodwill

The excess of consideration paid over the fair value of identifiable net assets acquired in a business combination.

Non-controlling interest (NCI)

The share of a subsidiary's equity not owned by the parent, shown within group equity.

Gearing

The proportion of debt in long-term financing; higher gearing means higher financial risk.