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CA Final Costing (AMA) Paper Tips



Dear students, following are some effective tips which should be followed while attempting your
Costing (AMA) paper.

COSTING CONCEPTS

1. While attempting a question on cost management, it is the most essential to read the requirement of the question carefully.

2. After reading the requirement of the question, concentrate whether the requirement is related to
decision-making or to profit and loss statement.

3. If the requirement is related to decision-making we will have to follow Relevant cost concept.
Decision-making will always show effect on profit ascertained by working out relevant gain and relevant cost.

4. If the requirement is related to profit and loss statement, we will have to follow total cost concept. Profit and loss statement will always show the profit or loss which is ascertained by working total revenue and total cost.

5. In some questions, some times requirement are given by number a, b, c, & so on. Then in such requirements we should always preassume that each & every requirement are independent unless & until information are interlinked with each other. Solve these requirements independently with information given in question.

6. In some questions, it may happen that all the information given in the question are not required to be used at the same time. Some information may be useful in requirement number (b) or (c) or so on. The thought on this information shall be given only when we are going to attempt that requirement.

7.Sometimes many information are given in the question, but these information are not required to be used in the light of requirement of the question. We should identify these information as irrelevant/useless/ baseless and keep ourselves away from them.

8. We always have to follow the instruction of management blindly even if sometimes the instruction is contrary to our conceptual understanding. Under no circumstances we have any right to disregard the management instruction.

9. It should always he kept in mind that each and every information is to be read carefully. Casual approach or idea approach plain reading is very dangerous in most of the cases.

10. If the question is silent on some point whose interpretation is required for solving the question,
we should always follow the most acceptable practice.

11. Advise/recommendation to the management should be always specific and unconditional but if these appears to be some ambiguity in the information, give the advise/ recommendation subject to qualifying remarks.

12.Presentation can vary from student to student. It is not at all a cause of worry but it has to be ensured that the presentation should be up to acceptable norms (if not the best) with working notes (only essential working notes).

13. One of the most essential part while attempting a question on costing is to ensure proper planning. Before we start the paper, the entire paper has to be first read carefully so that the proper planning to attempt the paper can be formulated. Selection of right a question at right time is the vital key for grand success in this paper which can be ensured through proper planning.

14. Ensure proper time management through effective planning choosing the sequence of attempting the question in such a manner so that time management may not go out of control. (For example choosing one lengthy question with some light weight question so that time spent over in one question should be set off against another question). Since the Costing paper is quite lengthy, it is
generally not advisable to target 100 marks attempt. We should target around 90 marks attempt and put our sincere efforts to achieve the same through proper and effective planning. If we are able to achieve higher than our own designed benchmark, it will be a bonus for us.

All the best ..

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