CMA Final · December 2025 · Paper 16
CMA Final Strategic Cost Management December 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICMAI; read them on ICMAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 2 | 14 | Relevant cost of using spare capacity for a new product versus selling hours, optimal price and weekly programme | Relevant Cost Analysis |
| 3(a) | 7 | Divisional and company profit at different outputs under a set transfer price, and the company-optimal output | Transfer Pricing (Cost Management) |
| 3(b) | 7 | Product life cycle cost and the effect of a price cut with higher volume and fixed costs | Product Life Cycle Costing |
| 4(a) | 7 | Throughput accounting: return per bottleneck hour, throughput accounting ratio and efficiency ratio | Throughput Accounting |
| 4(b) | 7 | Principles and practices of lean accounting | Just in Time (JIT) |
| 5(a) | 7 | Material mix, usage, price and cost variances working back from partial data | Variance Analyses |
| 5(b) | 7 | Overhead expenditure, capacity and efficiency variances derived from given totals | Variance Analyses |
| 6(a) | 7 | Formulating a product-mix linear programme and writing its dual | Linear Programming |
| 6(b) | 7 | Unbalanced assignment of contractors to jobs with fixed allocations and the discount needed to win | Assignment |
| 7(a) | 7 | Simulating arrivals and servicing with random numbers to estimate average backlog | Simulation |
| 7(b) | 7 | Quoting prices for successive orders using a learning curve table and a cost markup | Learning Curve |
| 8(a) | 7 | Profit-maximising output and maximum profit from non-linear price and cost functions | Business Application of Maxima and Minima |
| 8(b) | 7 | Monthly seasonal indices by the ratio-to-trend method with a linear trend | Business Forecasting Models - Time Series and Regression Analysis |
What stood out
- Every written part except lean accounting principles was numerical, so this paper rewards sustained computation practice more than any other Final paper.
- Question 2 was a single 14-mark relevant-costing problem on using spare capacity, the largest decision-making item.
- Quantitative techniques again filled Questions 6 to 8 (LPP with dual, assignment, simulation, learning curve, calculus optimisation, seasonal indices).
- Variance analysis took a full question built around missing-figure puzzles, testing understanding of variance relationships rather than routine formulas.
- Strategic costing topics such as transfer pricing, life cycle costing and throughput accounting each had a 7-mark computation.
Practise the chapters that carried the marks
Variance Analyses, Relevant Cost Analysis, Linear Programming: study guides and practice questions in the CMA Final format.