Question about gate exam

Hi,
Thanks for your question.

From what I understand, CIMA’s management gateway route is exactly the same exam as the Management case study. But for those who are fortunate enough to be eligible for accelerated entry via gateway they will receive 12 exemptions once they have passed the management case study exam.

We dont currently offer the resources relating to the CIMA case study examinations at the moment. But there are many resources available on the CIMA website itself – including a management Gateway tutorial and a chance to try out an example of the questions asked.
https://www.cimaglobal.com/Study-with-us/CIMA-Professional-Qualification/management-accountant-gateway/

There is no syllabus specifically for the case study exams but they will be based on knowledge gained in the previous management level papers as well your business acumen, your exam technique and your common sense.

Your prior learning must have given CIMA reason to offer you this fast-track route – so I think you should have a try of the resources on that link and make a judgement for yourself if you feel your technical accounting knowledge could do with an update.
If this is the case then our Open Tuition notes, videos and questions will be available for you to brush up your knowledge in preparation for the gateway/ case study exam sitting.

Hi,
Yes thats no problem.
Volume based recovery is referring to the manner in which the costing method is able to ‘recover’ or ‘recoup’ the overhead or indirect costs incurred by passing these costs onto the customer as part of the inventory cost.

The more the volume – i.e. the more units that are made – the lower the allocated cost per unit relating to overheads will be.

In terms of the Gateway/ managerial pre-seen case study , you’ll notice the costs that need to be recovered in this way are ‘research and development’ and ‘tooling’.
These are indirect costs of production which need to be added to the cost of making the cars but are not as straightforward to allocate as direct materials or labour charges.

Therefore, this factory shares these indirect costs across all the units ( cars) produced.

When the factory is working at 100% volume there are more units of output over which to share these costs – so you will notice that just $2000 of the research and development cost is added to each car’s cost per unit.

When the factory is at 70% volume the overhead cost per unit (cost per car) is much greater because not as many units are made over which to share the total overheads. So in the case of reduced capacity each car in the scenario will be charged $2857 of the research cost per unit.

Hope that explains ok
Kind Regards
Cath

You’re welcome ?