CMA Intermediate · December 2025 · Paper 8
CMA Intermediate Cost Accounting 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(a) | 7 | Profit statement per unit and revised selling price to keep the profit-to-sales ratio after cost increases | Introduction to Cost Accounting |
| 2(b) | 7 | Optimum order size among alternatives with quantity discounts, ordering and carrying costs | Material Costs |
| 3(a) | 7 | Comprehensive machine hour rate including operator wages with allowances and bonus | Overheads |
| 3(b) | 7 | Cost sheet for two products with overhead absorption and reconciliation of over or under absorption | Introduction to Cost Accounting |
| 4(a) | 7 | Freight per tonne per trip for a truck with partial return-load utilisation | Operating Costing - Transport, Hotel and Healthcare |
| 4(b) | 7 | Contract account with work certified, uncertified work, lost materials and profit to be recognised | Contract Costing |
| 5(a) | 7 | Three process accounts with normal wastage and computing wastage percentage in the last process | Process Costing |
| 5(b) | 7 | Labour cost, efficiency and idle time variances for a three-grade workforce | Standard Costing and Variance Analysis |
| 6(a) | 7 | Break-even point, sales for a target profit and revised price after capacity expansion | Marginal Costing |
| 6(b) | 7 | Whether to discontinue a product line using contribution rather than total-cost profit | Marginal Costing |
| 7(a) | 7 | Three-month cash budget with collection lags, payment lags and one-off outflows | Budget and Budgetary Control |
| 7(b) | 7 | Scope of the cost accounting standard on transportation cost | Cost Accounting Standards (CAS 1 to CAS 24) |
| 8(a) | 4 | Factors to consider when installing a costing system | Introduction to Cost Accounting |
| 8(b) | 5 | Meaning of idle time and its causes | Employee Costs |
| 8(c) | 5 | Different methods of costing and where each applies | Introduction to Cost Accounting |
What stood out
- Eleven of fifteen written parts were numerical, and every major costing method (contract, process, operating) had a 7-mark computation.
- Marginal costing took a full question (break-even with expansion, discontinuing a product line) and two MCQs.
- Question 8 was again a three-part short-answer theory question, which together with the CAS part gives about 21 theory marks.
- Material and labour costing each appeared through optimum order size with discounts and a comprehensive machine hour rate with wage allowances.
- Budgeting was tested through a cash budget rather than flexible budgets, while variance analysis was limited to labour variances.
Practise the chapters that carried the marks
Introduction to Cost Accounting, Marginal Costing, Budget and Budgetary Control: study guides and practice questions in the CMA Intermediate format.