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What do you learn in P1?

Why costing is done and what it is used for, including appropriate costing methods and techniques and where digital costing might be used.
How budgets are prepared and implemented across the organisation, the impact these have, and how techniques are applied to ensure sound short term decision making, against a backdrop of risk and uncertainty, by using appropriate risk management tools.

CIMA P1 Exam Syllabus Topics:

Topic	Details
Topic 1	Calculate the breakeven point and output level required to meet income targets Understand costing and the different reasons for calculating costs
Topic 2	Understand how budgets can help energize and motive individuals and teams Recognise how management accountants help make tactical business decisions
Topic 3	Determine the activity that causes the change in cost Understand the difference between variable costs and fixed costs
Topic 4	Understand relevant cash flows and non-financial factors and how it affects make or buy decisions Understand the strategic implications of short-term decision-making
Topic 5	Understand relevant cash flows and their use in pricing decisions Calculate the costs for products or services using activity-based costing
Topic 6	Determine causality in cost function estimates and impact on budgets Identify inventory costs and period costs
Topic 7	Calculate subdivision of total usage efficiency variances into mix and yield variances Use material, labour, variable overhead, fixed overhead and sales variances
Topic 8	Establish manufacturing standards for material, labour, variable overhead and fixed overhead Understand the difference between financial accounting and cost accounting
Topic 9	Calculate revenue and cost estimates using quantitative analyses Calculate and interpret overall flexed budget variances