CIMA P2 Advanced Management Accounting: Complete 10 Sessions

Overview

CIMA P2 cost and investment decision analysis

CIMA P2 is the Performance subject at Management level of the CGMA Professional Qualification. It links cost management, capital investment and unit performance with decisions about how an organisation uses its resources.

A sound calculation is only part of the work. For example, CIMA P2 Advanced Management Accounting study roadmap

First, examine what drives a cost. Then compare performance measures and investment options. Finally, test the assumptions behind a recommendation and explain the risks that remain.

Sessions	Topic	Study task
1–3	Cost planning, management and pricing	Compare cost methods and explain their use.
4–6	Responsibility centres, performance and control	Link measures with objectives and manager decisions.
7–8	Long-term investment decisions	Build cash-flow workings and compare project options.
9	Risk in medium-term decisions	Test uncertain inputs and possible responses.
10	Integrated P2 revision	Connect calculations with reasoned advice.

Offered By

The Chartered Institute of Management Accountants (CIMA)

The CIMA was founded in 1919. The CIMA head office is located in London, UK.

Members

AICPA & CIMA support a global community of members, candidates and registrants. Use their official organisation resources for current membership information.

Learning purpose

The learning purpose is to make a decision model clear enough for another person to question. State the objective, show what drives the result and separate evidence from assumptions.

In addition, explain what the analysis leaves out. A recommendation is more useful when managers can see both its basis and its limits.

What is the eligibility?

Progression: Complete the CIMA Operational level before entering the Management level, unless CIMA has approved an applicable exemption or entry route.
Registration: Maintain the CIMA candidate registration required for your qualification route.
Exemptions: Relevant previous study may support an exemption application. However, only CIMA can confirm an exemption; obtain its decision before relying on it.

Who can do?

Candidate profiles for CIMA P2 preparation

Anyone who is interested to learn about following concepts can pursue CIMA P2: Advanced Management Accounting:

CIMA learners meeting the relevant progression requirements, candidates with CIMA-approved exemptions, professionals developing skills in this subject.

Individuals with the following designations:

Management-level CIMA learners, management accountants, cost analysts, finance business partners, professionals preparing investment appraisals, staff reporting on business-unit performance.

Lecture plan

The 10 sessions move from cost choices to unit performance, investment appraisal and risk. First, practise each method on a defined problem. Then compare alternative approaches and explain the implications of your result. Finally, bring the topics together in revision tasks.

Session 1:

Cost Planning & Strategic Cost Management (1)

Introduction to P2, cost drivers, modern cost structures, Activity-Based Costing (ABC), Activity-Based Management (ABM), and customer and product profitability analysis.

Session 2:

Cost Management Techniques (1)

Total Quality Management, cost of quality, continuous improvement, Kaizen costing, Just-in-Time (JIT), Theory of Constraints, throughput accounting, and business process re-engineering.

Session 3:

Cost Planning & Pricing (1)

Learning curves, life-cycle costing, target costing, value chain analysis, pricing strategies, and techniques for improving long-term profitability.

Session 4:

Responsibility Centres & Performance Management (1)

Types of responsibility centres, decentralization, controllability, divisional performance, performance measurement, and alignment of organizational and divisional objectives.

Session 5:

Financial & Non-Financial Performance (1)

Return on Investment, Residual Income, Economic Value Added, financial performance measures, non-financial performance indicators, Balanced Scorecard, and performance evaluation.

Session 6:

Transfer Pricing & Budgetary Control (1)

Transfer pricing methods, divisional decision-making, goal congruence, flexible budgets, budgetary control, behavioural aspects of budgeting, and performance evaluation.

Session 7:

Long-Term Decision Making (1)

Relevant cash flows, investment appraisal, Accounting Rate of Return, Payback Period, Discounted Cash Flow, Net Present Value, Internal Rate of Return, and investment decision-making.

Session 8:

Advanced Investment Decisions (1)

Project ranking, capital rationing, taxation and inflation in investment appraisal, sensitivity analysis, uncertainty in investment decisions, and evaluation of long-term projects.

Session 9:

Risk and control in medium-term decisions (1)

Identify uncertain inputs in a medium-term plan, assess their effect on the decision, compare possible responses and explain which risks remain. For example, test how a demand estimate changes an investment recommendation, then identify evidence that would improve the estimate.

Session 10:

Integrated P2 Revision & Exam Preparation (1)

Integrated case-based application of P2 concepts, numerical and analytical practice, performance evaluation, investment decision-making, risk and control scenarios, mock questions, exam techniques, and final revision.

Learning Methodology

Build a small model, then explain what would make its conclusion change. Start with a clear choice between alternatives rather than a list of formulas.

State the decision and the objective.
Choose relevant data and show its source.
Apply the method with consistent units and timing.
Test a key assumption and compare the result.
Explain the choice and the risk that remains.

Finally, revisit the same choice with different evidence. This checks whether your recommendation follows the facts.

Lectures

Use teaching discussions to connect a method with the question it answers. For example, compare two investment options and ask why the chosen measure is useful. Discuss the assumptions before treating a numerical result as a decision.

CIMA P2 calculation and interpretation practice

Practice Session

Practise with linked calculations and a short written conclusion. First, check the data and timing. Next, change one input and explain the effect on the choice. Record whether an error came from the method, the working or the interpretation.

Mock Examination

Use a mixed set of P2 tasks to practise switching between methods. After the attempt, review your choice of method as well as the answer. However, a practice result does not prove readiness or replace CIMA assessment. Use the review to choose the next topic to study.

Berkeley Middle East Performance Standards

A useful P2 response makes its working and judgement clear. Review it against these questions:

Does the method fit the stated decision?
Are the inputs, units and timing consistent?
Can another person follow the calculation?
Is the effect of a changed assumption clear?
Does the conclusion acknowledge relevant risk?

For example, a correct total may still support a weak recommendation if the model uses unsuitable data. Therefore, review the basis of the answer as well as its accuracy.

What are the Exam Information?

CIMA P2 objective test examination information

P2 is a computer-based objective test. Therefore, prepare to select or enter an answer accurately, as well as understand the method behind it.

Item	P2 assessment information
Duration	90 minutes
Question formats	Short multiple-choice, number-entry, drag-and-drop and other objective-test formats
Availability	On demand from January to December, subject to booking availability
Delivery	Pearson VUE test centres or online where available; check local rules and technical requirements before booking

Before booking, check the official CIMA examination guidance and your candidate account. In addition, use CIMA’s current results guidance to interpret your result. Berkeley tuition does not determine the official assessment outcome.

Success Stories

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- H.H. Shaikh Khalifa Al Hamid

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‣ Educational Discounts: Enjoy a 20% discount on open-enrollment programs and access to workshops focused on emerging trends.

‣ Global Alumni Network: Connect with a diverse alumni community through the Berkeley School’s online network and engage in country and interest groups.

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Career applications

Advanced management accounting can inform decisions about costs, investment and the performance of organisational units. Use the subject to explain the assumptions behind an analysis and the implications of changing them.

For example, a management accountant may compare a proposed investment with an alternative use of resources. In addition, communicating uncertainty helps managers understand the limits of a recommendation.

Progression Route:

The Management level also includes CIMA E2: Managing Performance and CIMA F2: Advanced Financial Reporting. Pass, or hold exemptions from, all three objective tests before progressing to the Management Case Study.

After passing that case study, candidates can progress to the Strategic level. However, completing Berkeley P2 tuition alone does not complete a CIMA level or confer CIMA membership. Confirm your individual route and exemptions with CIMA.

What You Earn

Berkeley’s certificate records P2 training completion. CIMA results and awards are separate; P2 tuition does not itself confer CIMA membership.

Berkeley course completion certificate for CIMA P2 training

Model discipline

Set out data, timing and assumptions so another person can follow your analysis. For example, make clear which input changes between the options being compared.

Risk-aware recommendations

Explain how an uncertain input affects a choice. In addition, show what evidence would help a manager judge the remaining risk.

Performance interpretation

Connect a unit measure with the activity it reflects. Then consider whether the measure encourages behaviour that serves the wider organisation.

Related courses

CIMA - Chartered Institute of Management Accountants

The CIMA qualification is a globally recognized certification in management accounting, focusing on business strategy, performance management, and financial decision-making.

CIMA BA1: Fundamentals of Business Economics

BA1: Fundamentals of Business Economics introduces the core economic principles businesses use to understand markets, resources, costs, demand, supply, and decision-making.

CIMA BA2: Fundamentals of Management Accounting

BA2: Fundamentals of Management Accounting develops essential knowledge of management accounting, costing, budgeting, and financial information for effective business decision-making.

CIMA BA3: Fundamentals of Financial Accounting

BA3: Fundamentals of Financial Accounting develops essential knowledge of financial accounting principles, financial statements, accounting records, and reporting practices for business decision-making.

CIMA BA4: Fundamentals of Ethics, Corporate Governance and Business Law

BA4: Fundamentals of Ethics, Corporate Governance and Business Law develops essential knowledge of ethical principles, corporate governance, business law, and responsible professional conduct.

CIMA E1: Managing Finance in a Digital World

CIMA E1: Managing Finance in a Digital World explores how finance teams use data and technology. Build judgement for digital finance processes and business collaboration.

CIMA P1: Management Accounting

CIMA P1: Management Accounting connects costs, budgets and uncertainty with short-term decisions. Build the reasoning needed to compare options and explain an operational recommendation.

CIMA F1: Financial Reporting

CIMA F1: Financial Reporting develops a foundation in financial statements, taxation, cash and working capital. Learn to connect reporting rules with the information a business needs.

CIMA Operational Case Study

The Operational Case Study applies CIMA knowledge and skills to realistic business scenarios, assessing learners' ability to analyze information, make decisions, and provide practical business solutions.

CIMA E2: Managing Performance

CIMA E2: Managing Performance connects organisational goals with decisions about people and projects. Develop an enterprise perspective for practical management situations.

CIMA F2: Advanced Financial Reporting

CIMA F2: Advanced Financial Reporting connects reported figures with business understanding. Build clear workings, question comparisons and explain what financial information can and cannot show.

CIMA Management Case Study

The CIMA Management Case Study integrates E2, P2, and F2 knowledge, assessing learners' ability to apply management accounting, performance management, and financial reporting skills to realistic business situations.

CIMA E3: Strategic Management

E3: Strategic Management develops advanced skills in strategic analysis, leadership, business strategy, organizational change, and long-term decision-making.

CIMA P3: Risk Management

P3: Risk Management develops advanced skills in identifying, assessing, managing, and responding to financial and business risks to support effective strategic decision-making.

CIMA F3: Financial Strategy

F3: Financial Strategy develops advanced skills in financial strategy, investment decisions, financing, valuation, and financial risk management to support long-term business objectives.

CIMA Strategic Case Study

The CIMA Strategic Case Study integrates E3, P3, and F3 knowledge, assessing learners' ability to apply strategic management, risk management, and financial strategy skills to complex business situations.

FAQ: CIMA P2: Advanced Management Accounting

How can I make an investment comparison fair?

What should I check before using a project cash-flow estimate?

How can I review a sensitivity calculation?

How do I avoid mixing cash flows with accounting measures?

How can I explain a disagreement between performance measures?

What makes a business-unit comparison useful?

How can I practise transfer-pricing reasoning?

How should I challenge a proposed cost saving?

How can I keep investment-appraisal workings easy to review?

How can I distinguish an error in my method from an error in interpretation?

What should a risk-aware recommendation include?

What should I confirm before selecting Berkeley CIMA P2 preparation?

BERKELEY SCHOOL OF BUSINESS, ARTS & SCIENCES

CIMA P2: Advanced Management Accounting

Overview

Table of contents

Offered By

Members

Learning purpose

What is the eligibility?

Who can do?

Lecture plan

Session 1:

Session 2:

Session 3:

Session 4:

Session 5:

Session 6:

Session 7:

Session 8:

Session 9:

Session 10:

Learning Methodology

Berkeley Middle East Performance Standards

What are the Exam Information?

Success Stories

Alumni Benefits

Career applications

Progression Route:

What You Earn

Model discipline

Risk-aware recommendations

Performance interpretation

Related courses

The CIMA qualification is a globally recognized certification in management accounting, focusing on business strategy, performance management, and financial decision-making.

FAQ: CIMA P2: Advanced Management Accounting

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