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SUMMERY OF EXAMINERS’’ & HEAD EXAMINERS’’ COMMENTS
DECEMBER 2008 EXAMINATION – Syllllabus 2002
INTERMEDIATE : STAGE - I
Paper : 5 : Cost and Management Accounting :
Question wise Comments :
Qn.No. General Comments Guidelines for improvement of performance
1 (a) &
(b)
Almost all the examinees have
performed well.
For those who could not do well, it is suggested that they should
go through the Study Material and the Recommended Reference
Books and the Suggested Answers of all the previous exams
thoroughly and try to build up their basic concepts and
fundamentals of the subject. Arrangement of Quiz Contests for
students may be organized at different chapters periodically with
such questions from past papers and the Study Material.
1 (c) Overall performance in this question
was not satisfactory. Majority did not
give any workings to support their
answers and had to forego 50% of marks.
Students are advised to work out and practice with the past
question papers and should practice to work out of such short
questions correctly and quickly.
2 (a) The general performance was very poor.
Many could not even write a single
complete correct sentence in English. In
many cases, their hand-writing were not
‘readable’.
From the answers, it is clear that the examinees had not prepared
well for the exams. Examinees are advised to learn the
basics/fundamentals clearly and build up their concepts by
studying diligently the Study Material, Past Suggested Answers
and the Recommended Reference Books thoroughly. They have
to improve their English as well as their hand-writing.
3. The problem given was an easy one.
Such type of problem are found in any
standard books on the subject. Many
examinees had attempted this question
and their overall performance was very
satisfactory.
Many have ignored ‘Direct wages’ of service deptt. further many
were wrong on the basis of allocation of overhead. Students are
advised to practice on similar problems from any standard books.
4 (a) The answers were in general very poor.
Some had answered that ‘Joint Products’
are ‘products joined’.
The basic concept was found lacking. Some of the answers are
indicative of ‘how unprepared’ were many examinees.
4 (b) Very few had attempted this. Many
could not work out ‘segregation of joint
expenses’ correctly.
Students are advised to learn well the method of
costing/application of Joint & By-Products. They are advised to
practice numerical on this subject and practice well.
5. The performance in this question was
good.
Standard Costing is one of the most important chapter and
students should master this topic.
6. This was a very simple question and
almost all had answered it well
These are simple problems and examinees should learn the basics
of fund flow statement and work out a number of problems from
standard books.
7 (a) Very few are attempted this question and
a few could get it right.
Marginal Costing Technique is the most important technique and
any examinee should be able to give the correct answer to the
numerical on this chapter.
7 (b) Very few could get the answer. The
average performance was very poor.
A Cost Accountant is expected to give expert/professional advice
to the Management on the different alternatives available and
suggest the optimal solution. The examinees are required to study
hard from the Study Material and the Recommended Reference
Books and try to build up their basic concepts and fundamentals
of the subject. Further the presentation of such problems is very
important.
8. Very few had given good answers on
these frequently asked questions for a
short note.
Examinees should equally lay stress on theoretical questions side
by side with practical questions.
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Paper : 6 : Information Systems and Technology :
Question wise Comments :
Qn.No. General Comments Guidelines for improvement of performance
1 Many candidates failed to match
1(a)(i)[Modem] & 1(a)(iv)[Telnet].
Performance in Part (b) & (c) was good,
overall performance was average.
It is advised to go through the Study Material extensively to
develop the knowledge & conceptual skill.
2 Most candidates attempted this question.
Overall performance was fair. Although
many candidates failed to answer 2©(ii).
Try to give equal emphasis on every sections of the Study
Material.
3 Although many candidates attempted
this question, majority of them gave
vague answers of Qn.3(b).
Application part of the subject knowledge should be developed.
4 Although most of the candidates
attempted this question, very few
candidates are able to write answer to
4(b). Overall performance was fair.
Application part of the subject knowledge should be developed.
5 This question was attempted by few
number of the candidates. Although
many candidates failed to explain Part©.
Candidates should attempt the questions after ensuring that he
properly knows all parts of questions. Many candidates lacked the
knowledge of proper question selection.
6 Most candidates fairly attempted the
question. The performance of 6(a) was
good and 6(b) and (c) were average.
Candidates are advised not to overlook any sections of the study
material. Instead of just memorizing, proper understanding of the
subject matter is of vital importance.
7 Many candidates attempted this
question. Performance of Qn.7(b) was
very poor, as many candidates expressed
confused knowledge of the full form and
name of two RDBMS.
Proper development of conceptual knowledge & skill is required
with respect to DBMS. Knowledge of internet & intranet,
different cyber rules & regulations should be studied with
appropriate conceptual framework.
8 Most of the candidates attempted this
question. Almost all candidates were
wrote the answer of 8(e) i.e., Ecommerce.
Overall performance was
good.
Development of subject knowledge is required for better
performance.
General recommendation :
▲ Candidates are advised to give technically precise answers without attempting the questions on the basis of guess.
▲ Candidates should give the answer point-wise, if possible, instead of giving the answers in paragraph shape.
▲ Students are advised to attempt the question as per given instructions after reading the questions carefully.
▲ Correct spelling of various computer terminologies is of vital importance in professional arena.
▲ Modern computer application thoughts should be given special importance.
Paper : 7 : Business Laws and Communication Skill :
Question wise Comments :
Q.NO. COMMENTS
1 Not satisfactory – lack of study, lack of understanding the question ; lack of presentation
1(a) (i) – (vii) Poor – could not answer correctly by many.
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1(a) (viii) –
(x)
Average
1. (b) It is regretted that a large number of candidates avoided the question although ‘coercion’ and “undue
influence” are common. Majority could not distinguish ‘coercion’ and “undue influence”
2.a(i) Unsatisfactory – large number of candidates avoided this question, wrong answer by many.
2.a(ii) &
2.d(ii)
Wrong answer by majority
2b, 2c, 2d(i) Average
3a Satisfactory
3b & c Not satisfactory – majority avoided this question
3d Average
3e Wrong answer by many – some could not understand the question
4a Majority avoided – answer were poor and wrong
4b,c,d Average
4e Poor – wrong answer by majority-lack of understanding the question-majority answered types of
meeting instead of “method of ascertaining the sense of meeting”
5 Specific answers i.e. consequences were absent in majority cases
5a,b,c Poor – wrong answer, few attempted.
5e,h Wrong answer in majority cases
5d,f,g Average
6 Quality of Answer is not upto mark, unsatisfactory and incomplete answer in majority cases
6a Inter connected undertaking – very few attempted
6b Accounting standard – large number of candidates attempted but incomplete answer
6c Nominee Director – wrong answer by many
6d Industrial Disputes – average incomplete answer
6e Air pollution control area ; not satisfactory
6f Directors Report : not up to mark – lacking vital points
7a Lack of knowledge on the subject ; Answers were not based on legal provisions, poor drafting
7b,8a, 9b Average
8b Very poor
9a Not satisfactory – majority avoided; some could not understand
10a, b Poor, not satisfactory, majority avoided these question
7, 8, 9 Majority Attempted
General recommendation :
(i) To keep in touch with periodical amendments, to study the Institute’s Study Notes and books of latest
edition
(ii) Thorough and in depth study is necessary specially for compulsory question no.1
(iii) Careful reading and understanding the meaning and basic requirement of question
(iv) To avoid repetition of same points
(v) To provide margin on both sides of the answer book, with adequate space in between two answers, to
present in a legible manner
(vi) Not to write vague answers
(vii) To improve handwriting
(viii) To improve communication skill etc.
Paper : 8 : Business Taxation :
Comments :
The performance of students was just satisfactory. The communication skill of the students was very poor. Several students
were found wanting in use of precise legal terminology, imperative in a statute-based paper like Business Taxation. Most
students appear to indulge in Selective Reading ; in some areas they are good, whilst in several topics, poor knowledge is
exhibited.
INTERMEDIATE : STAGE - II
Paper : 9 : Management Accounting – Performance Management:
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Question wise Comments :
Qn.No. General Comments Guidelines for improvement of performance
1 Fair attempt generally None
2 The core question deals with
contribution per unit of key factor. This
has been missed altogether except in a
couple of cases.
Ability to identify the thrust of the question in cases centering on
contribution analysis needs to be developed. Practicing under
examination conditions can help.
3 Reasonable attempt in most cases Ability to keep in view the main requirements of the question was
important. Practicing under examination conditions can help.
4 Worked out successfully by many.
Confusion in some cases observed for
not following straight forward
interpretation while deciding on
variability of expenses.
Practicing under examination conditions can help.
5 Fair attempt None
6 Worked out correctly generally, barring
a few cases of arithmetical error.
None, except noting the figures in question with greater care to
avoid costly mistakes.
7a A few of the examinees had considerable
confusion on relevant units, time in
hours or persons in part (a).
The deeper significance of units needs to be appreciated.
7b A few of the examinees apparently
tended to lose sight of the main
requirement of the question in part (b)
Ability to identify the thrust of the question in cases centering on
contribution analysis needs to be developed. Practicing under
examination conditions can help.
8 Fair attempt in almost all cases None
Paper : 10 : Advance Financial Accounting :
Question wise Comments :
1. Performance was by and large fair. However, for improvement examinees must study Institute’s study
notes effectively.
2. Though few students attempted this questions, inadequate conception of the subject was observed.
Students should study good text book and do regular practice.
3. Answer was by and large satisfactory, for improvement regular practice and solving of past questions will
improve the standard of answer.
4. Very few students attempted this question and solved correctly. This is really a practice-oriented topic.
Student must acquire sound knowledge to improve their performance.
5. Most of the candidates attempted this question. Hence, for improvement of the standard of answer
Institute’s study notes alongwith good text book must be referred to.
6. Performance of this question was very poor. Poor knowledge of the topic is noticed. Students must read
good text book and regular practice of solving previous questions is necessary.
7. Answer to the question was by and large satisfactory. But standard of answer was below mark.
Candidates must read study notes and solve problems from good text books.
8. Answer was average. However, to improve the performance, students must be conversant with
Government accounting procedure & read study notes regularly.
General recommendation :
In order to clear such professional examination, student must make rigorous and in-depth study of Institute’s
study notes, complied with taking help of good text books followed by regular practice and solving of past
examination questions. Casual treatment in no way will help a student to clear this paper. Since, it is observed,
that students are ill-prepared for such examination.
Paper : 11 : Auditing :
Question wise Comments :
1. R & D Cost concept not clear. A S 10 not clear.
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2. CARO – 03 lack of concept. AAS – 9 knowledge confused.
3. Composition of Indian and U S GAAP not at all clear.
4. Compliance Audit mostly referred to formalities for Bank Loan without explaining the concept.
5. Cost Audit importance and reference of record u/s 209 (1). Statutory Auditor has to comment and qualify
for non-compliance is not clear.
6. Operation Audit and Internal Audit. The purpose and objective – not clear.
7. No reference to A S 26.
8. Auditor/Audi tee relation – existence of good Internal Audit in the organization is the focus area not
touched upon.
General recommendation :
A good number of examinees have not adhered to the instructions of the Institute of answering a fresh question
on a separate page. The conceptual knowledge of the examinees is not adequate considering the expected
standard level. Answers exhibited lack of systematic and logical approach, clear presentation. Incorrect
English/wrong spelling etc. are rampant. A good number of candidates wrote their Roll Numbers in the
additional sheets used by them. This should be prohibited as per the instructions contained in the front page.
Paper : 12 : Quantitative Methods :
Question wise Comments :
The areas in which the students are found to have deficiency in knowledge are limits and continuity in differential
calculus and integration in integral calculus. In Statistical Techniques the students are found to have very poor
knowledge in testing of Hypothesis. Most of the students lack in elementary knowledge of algebra.
Q.NO. COMMENTS
1. a,c,f Most of the students done correctly
1.b Most of the students wrote n=4 but it is n=±4
1.e,i,j Many students answered correctly
1. d, g Only few students done correctly
2. a Many students done correctly
2.b Only few answered correctly and many of them found det(A) correctly and many used Cramer’s rule
method
2.c Many of the students wrote ▲2 = adj A and they did not found adj A and simply wrote the answer
3.a,b,c Only few done correctly
4. a,b,c Few students answered partially correct
5. a Many students wrote correctly
5.b Only few students derive correct answer
5.c Most of the students did not write the units for arrival rate, service rate, queue length and time spent in the
system
6. a to j Many students attended correctly
7. a,b Many students wrote correctly
8.a Many students attended correctly
8. b A few attended this question
9. a Many students done correctly
9. b Many students done correctly
10. a, b Many students did not attend
11. a Only few answered correctly
11. b Most of the students did not know how to find the stock-demand table (pay-off table)
12. a to h Many students done correctly
13. a Only few attended correctly
13. b Except few most of the students did not find the slope
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13. c Many students done correctly
13. d Almost all students took the weight of the commodities as it is but it should be 10a, a, 2a, 3a, 4a.
13. e Nobody wrote correctly
Suggestions :
(i) Avoid careless mistakes.
(ii) Write the formula correctly.
(iii) Answer the Objective questions in Statistics (Q.no.6) with proper reasons.
FINAL : STAGE - III
Paper : 13 : Operations And Project Management And Control :
Question wise Comments :
1. a Not satisfactory
1. b Not to be point in 75% cases
1. c (i) Not correctly expanded in 80% cases other acronyms correctly expanded.
1. d (i) In 80% cases answer was wrong, in 75% cases answer to (ii) was correct, (iii), (iv) & (v) were correctly
answered by almost candidates.
2. a Answer was not to the point as asked for i.e., not in appropriate format.
2. b (i) diagram was correct by drawn by many (ii) Answer was correct in 95% cases (iii) line balancing was not
done by many those who tried, in few cases it was correctly done (iv) in 50% cases answer was incorrect.
3. a Answer was not correct in 90% cases as they failed to compute processing Cost of Rs.110/- because of
incorrect calculation of metal removal per bar (Initial volume –final machined volume)
3. b Answer was to be point
4. a Essay type answer and average in nature. All the points were not covered.
4. b Total standard man power output was correctly determined by almost all. No. of piece workers in each shift
was not calculated at all but many did find out. No. of shifts in the year. Productivity of piece workers could
not be worked out by 90% candidates.
5 Short notes answer was average in nature
6 Answers were satisfactory in 90% cases
7. (a) Satisfactory answers (b) 1st part of the answer was good but subsequent crashing could not be correctly
worked out by many
8. Answer was satisfactory in 90% cases. Those who could not correctly worked out the problem failed to
calculate operational cash flow, Payments, DSCR and average DSCR(as they divided sum total of 7 years
DSCR by 7 instead of total payments against debts.
9.a Theoretical answer – not much to the point.
9. b Many worked the problem correctly.
10. a NPV of each project was correctly worked out by 95% candidates. But in case of feasible combinations based
NPV and BCR – almost all the candidates failed to do it.
10. b Answer was good.
Suggestions : The students should be more serious in their studies – both for theoretical and practical parts of the
subject.
Paper : 14 : Advanced Financial Management and International Finance. :
Question wise Comments :
1. Answers to this questions are not satisfactory.
2. (a) & (b) Very few could show calculation of interest in debts payments and schedule of cash outflows.
3. (a) While some students could work out volume of commitment in INR but failed to comment upon
proper advice. (b) Majority of students could not advice at expected loss as well as advice.
4. (a), (b) & (c) Average performance is good.
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5. All most all candidates skipped the problem as well as theory. Those who had attempt the problem failed
to compute expected return on the portfolio and SD of return. Students have displayed utter lack of
knowledge in portfolio management.
6. Average performance is good.
7. Candidates in a majority of cases had made correct calculation in finding out additional contribution from
increased sales but failed to work out additional receivables, additional investment in Receivables. Bad
Debt losses, amount of receivables, investment in receivables, profits etc..
8. Answers to this question burring a few are sketchy and superficial.
Paper : 15 : Strategic Management and Marketing :
Question wise Comments :
Qn.No. General Comments Guidelines for improvement of performance
1 Short/objective type. Candidates have attempted
questions.
Some candidates have failed to choose correct alternative, due to lack of
knowledge.
2 to 6 Candidates attempted these questions in different
combinations.
They have attempted in an average manner, because they are lacking knowledge.
7 Case study oriented. Some candidates attempted
these questions.
Candidates have been lacking knowledge. Even they have presented their answer
in a very poor manner.
8 Short notes. Candidates attempted this question. In
some cases, they have given good answers.
Candidates should read through the book.
Suggestions :
Examinees should read through the books and their Study Material subject like ‘Marketing’ has a unique dimension of
its own. Candidates should be more realistic, materialistic and technically sound. They should know how to present
their answers in the answer book, because presentation is an art.
Paper : 16 : Strategic Tax Management :
Question wise Comments :
1. Candidate performance is satisfactory except few wrong answers.
2. Through overall performance of the candidates is satisfactory, most of them committed mistakes in
segregating assets according to number of days in use and applied the rate of depreciation wrongly.
3. Only a few candidates attempted the part and those attempted committed mistakes. Candidates failed to
distinguish between the taxability of a HUF and Firm.
4. Presentation/approach should be more developed.
5. Conceptual knowledge of the subject matter was observed inadequate. Read reference books and practice
this type of model problem more analytically.
6. Presentation / approach should be developed. Absence of conceptual knowledge of the subject matter was
prevalent. Consult reference books to acquire conceptual skills of the same.
7. Most of the candidates wrongly determined total taxable income including income from lottery and hence
determined tax liability wrongly.
8. Answer to the question except part © & (d) is satisfactory. Candidates failed to explain & distinguish
between ‘Identical goods’ & Similar goods.
General Observations :
▲ Examinees need to revise the topics and important points including solving practical problems before the
examination.
▲ Examinees would perform better if they noted and clearly grasped what is asked for in the questions and if
they covered the salient points in their answers.
▲ Practice of solving questions from past papers and study material as well as prescribed books could have
helped improve performance.
Suggestions :
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i) Read the question carefully and understand what is required to be stated.
ii) Answers written should have relevance to the marks allotted.
iii) Time distribution requires proper attention to answer the paper completely.
FINAL : STAGE - IV
Paper : 17 : Management Accounting – Decision Making :
Question wise Comments :
1. Loss of marks for these objective type Part tells about inadequate study and lack of comprehension.
2. (a) This capital budgeting problem called for a simple mathematical exercise, but most answers failed to
reach the harmonious blend of cash flow (Rs.30 cr.) and Present Value (Rs.24.04 cr.)
3. (a) This very sum corresponds to the one illustrated in the Study Note. Hardly a correct answer was
availed. (b) Discussion of the impact of desired human behavior application of (i) Absorption Costing and
(ii) Installation of Costing and management Accounting System was needed. Many answers stopped short
after defining the said two terms.
4. It is the same sum as is illustrated in the Study Notes. Hardly there was a correct answer. Even the Project
Network diagram was wrong.
5. 6 & 7. Good attempts are noted.
Paper : 18 : Management Accounting – Financial Strategy & Reporting :
Question wise Comments :
1. The part (a) and part (b) of this question were answered reasonable good by most of the examinees. The
overall performance was well.
2. (a) Most of the candidates could answer to this question properly except a few. The overall performance
was well. (b) Most of the candidates did few steps right, few got the answer correct. Some of them
performed good. The overall performance was of average level.
3. (a) Most of the candidates could do few steps right, few got the answer correct. Some of them performed
well. The overall performance was of above average level. (b) Except few cases, answers were not
appropriately organized. Most of the answers lacked the conceptual knowledge of the subject matter – like
– Borrowing Cost to be capitalized as per As-16. the overall performance was not up to the mark.
4. Most of the answers exhibited confused knowledge of the concept – Systematic and Unsystematic risk. The
overall performance was below average level. (b) Most of the candidates could do few steps right. Few got
the answer correct. Most of them failed to answer properly. Some of them preformed good. The overall
performance was of average level.
5. (a) Most of the candidates were able to solve the few steps correctly. Some of them performed good. The
overall performance was more or less well. (b) Except few cases, the answers were not appropriately
organized. Most of the answers lacked conceptual knowledge of subject matter – Cash Flow Statement as
per As-3. the overall performance was not upto the mark.
6. (a) Most of the candidates could do few steps right, few got the answer correct. Some of them performed
well. The overall performance was of average level. (b) Most of the candidates could do few steps right, few
got the answer correct. Some of them performed good. The overall performance was more or less well.
7. Most of the candidates who attempted this question did few parts right, few got the answer correct. Most
of them failed to answer properly. Some of them performed good. The overall performance was not upto
the mark.
8. Part (a) to (f) Being the theoretical questions (short notes), most of the candidates performed well. Some of
them were beating about the bush writing unnecessary and irrelevant details in their answers. In general,
overall performance was fair.
GUIDELINES TO THE EXAMINEES :
• The overall performance has not been upto the level which may be expected from the students desirous
of entering into this profession of high expertise and knowledge.
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• Their answers exhibited lack of systematic and logical approach, clear presentation, proper and adequate
conceptual and analytical explanation.
• They had poor knowledge of concepts and also lacked in adequate practice to solve diverse range of
practical problems.
• Certain candidates did not start answer to each question on a FRESH PAGE as instructed by the
Institute.
• More questions having different parts were answered by some of the examinees at different places of their
answer books.
Suggestions :
i) The examinees/students are advised to read and understand questions thoroughly and carefully before
writing the answers.
ii) The examinees should consult/read standard reference books (latest edition) /Study Notes thoroughly
and analytically.
iii) Read the theoretical portion before attempting the theoretical/practical problems. Only theoretical
knowledge will help to develop the conceptual and computational skills.
iv) Adequate practice of practical/theoretical model problems is essential to acquire command over the
fundamentals of the subject matters.
v) Due attention must be given towards orderly presentation of solutions of practical problems in
suitable FORMAT along with sufficient working notes in order to secure good marks.
vi) Comprehensive preparation and acquiring indepth knowledge of the subject matters is extremely
required.
vii) Avoid writing unnecessary and irrelevant details in the answers to the questions.
viii) Consult the past questions and Suggested answers of the Institute to know the pattern/standard of the
questions and presentation of answers to the questions.
Paper : 19 : Cost Audit and Management Audit :
Overall Performance of the Students :
Very good. Most of them secured pass mark particularly those who attempted problem oriented questions in Qn. 2(a)
& 3 and those who have covered full syllabus and thoroughly studied the Study Notes. Candidates should think what is
required to be answered.
Suggestions :
a) For objective questions in both the Sections, cover all the Chapters/Syllabus wherefrom, True/False with
reasons (write yourself at the time of study), Multiple choice with reasoning, Fill up the Gaps, and in some
cases with numerical examples.
b) For Problem Oriented questions, all working notes, right presentation with Limit/Cost wherever applicable &
good Cost Accountant report rules as per Para, viz Para 28 – Profit Reconciliation & Para – 27 Central Excise
Reconciliation etc. etc. (Qn. No. 4), Cost Sheet Stage wise with Unit Cost (Q. 2a ) etc.
Paper : 20 : Valuation Management And Case Study :
Question wise Comments :
1. Mostly correct answers.
2. Good answers.
3. (a) A few answers wrongly showed different values of the company, Vedika Ltd., under different situations of
payment of dividend – which goes against the principle of M M approach. (b) Various methods of valuing
goodwill of a firm were well discussed.
4. While capital employed in the firms, Krishna and Gopal were correctly worked out, WACC of the combined
firm produced wrong answers. Some examinees read the question as requiring WACC for each of Krishna and
Gopal as if they were not to be considered as a unit of combined capital structure. That an all-equity firm
cannot have WACC is a common knowledge.
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5. Good answers were available in most scriptts.
6. Good answers.
7. (a) In some scriptts the “Life Cycle Cost” (PV) of the machine to be purchased was compared with the total
“Cost of running” the present machine. Obviously, the approach (and the answers) was wrong as like was not
compared with the like.
8. Relevancy of other costs were correctly ascertained except for material Y, Supervisory labour and general
overheads ‘Relevant Costing’ is gaining more importance now –a-days as business is becoming more
competitive. Management Accounting Students should have a thorough comprehension of it.
Disclaimer : The summary of comments of the Head Examiner/Examiners’ have been given as guidance to assist the
students in preparing themselves for the Institutes examinations. The opinion has been given by the Head
Examiners’/Examiners’ and should not be taken to reflect the views of The Institute of Cost And Works Accountants
of India, Kolkata.
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