CIMA OCS Checklist!

I’ve summarised a few topics below which came up in practise questions/mocks set by my tutor. I’d assume these are the topics they expect could be easily examined, so may be useful for you.
Business to Business Marketing
• Purchaser has greater purchasing power than normal consumer
• Form a closer / long term relationship
• Think about purchasing process within a business (who’s involved)
Different to business to consumer
• Value adding distributors
• Returns policy
• Customer relations
• Sales channel (shop)
Human Resource Planning
Review
• Strengths, weaknesses & opportunities
Audit Staff
• “stock -take”
Forecast
• Predict future needs
Fill gap between demand and supply
• Training
• Overtime
• New staff
Expected Values
• Probabilities
• Represents long term average
• Ignores risk by not evaluating spread
• Expected Values
Standard Deviation
• Shows volatility by measuring spread
Co-efficient of Variation
• Measures standard deviation as a percentage of the expected value
IAS 20 Government Grants
• Recognised in FS when reasonable assurance the following criteria will be met
Compliance with conditions
Grant will be received
• Capital grants record on BS as either deferred income and amortised or deducted from asset cost.
• Revenue grants recorded on P&L in period/s when cost is incurred
Shadow Price
• Is the maximum amount we should pay for one extra unit of resource
• Ideally pay less to make a profit
IAS2 Inventory Valuation
Cost
• Purchase costs – cost plus duties and handling
• Conversion costs – fixed/variable manufacturing overheads
• Transporting costs – costs to bring inventories to their present location and condition e.g delivery, duty and reworking costs
• Valued in FS at lower of cost and net realisable value (what it can be sold for)
Working Capital Analysis
• Inventory Days
• Trade Receivables Days
• Trade Payables Days
Classification of Investment
• Subsidiary – Acquiring more than 50% equity ownership
• Associate – Acquiring between 20% and 50% ownership
• Trade Investment – Investments are only classified in this way if the % ownership is not enough to result in significant influence
Investment impact on P&L
• Subsidiary – The Consolidated SOPL is the sum of both companies’ individual SOPL statements.
• Associate – Equity accounting is used whereby the investment is represented as a single line on the PL, titled Share of the Associate’s Profit
• Trade Investment – Dividend income
Decision Trees
• Useful in situations that require multiple decisions to be made, following on from each other.
Marketing Mix
• Product
• Place
• Promotion
• Price
Planning and Operational Variances
• Planning Variances – the differences between the original budget and the revised budget
• Operational Variances – the differences between the revised budget and actual results.
Transfer Pricing
• ‘Arms-length’ principle.
Relevant Costing
• Future Cash Flows
• Opportunity Costs
• Avoidable Costs
• Incremental Costs
Ansoff’s matrix
• Market Penetration – Growing the sales of existing products in existing markets.
• Market Development – Selling existing products in new markets.
• Product Development – Redesigning existing products or introducing new products to existing markets.
• Diversification – Producing new products or redesigning existing products for new markets; this is naturally the riskiest option as there are two variables changing and therefore less certainty on how each element will react.
IAS 38 – Research & Development
• Probable future economic benefits will be generated
• Clear Intention for sale to customers
• Availability of Adequate Resources to complete
• Sufficient Market Appetite to Sell
• Technically feasible to complete
• Costs can be reliably measured
Environmental Cost Reporting
• Same categories as quality costs