Via- CA Sanjay Aggarwal sir
(must read)
Dear students, following are some
effective tips which should be
followed while attempting your
Costing (AMA) paper.
COSTING CONCEPTS
{I} While attempting a question on
cost management, it is the most
essential to read the requirement of
the question carefully.
{II} After reading the requirement of
the question, concentrate whether
the requirement is related to
decision-makingor to profit and loss
statement.
{III} If the requirement is related to
decision-makingwe will have to
follow Relevant cost concept.
Decision-makingwill always show
effect on profit ascertained by
working out relevant gain and
relevant cost.
{IV} 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.
{V} 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.
{VI} 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.
{VII}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.
{VIII} 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.
{IX} 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.
{X} If the question is silent on some
point whose interpretation is
required for solving the question,
we should always follow the most
acceptable practice.
{XI} 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.
{XII}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).
{XIII} 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.
{XIV} ÞEnsure 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" and for any querry,
you can contact me either by call or
sms. Thanks.
CAclubindia
