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CMA Intermediate · June 2026 · Paper 12

CMA Intermediate Management Accounting June 2026: 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.

QMarksTestsChapter
2(a)7Scope of management accounting as an information system for analysis and interpretationIntroduction to Management Accounting
2(b)7Overhead cost per unit under a traditional machine hour rate compared with activity based costingActivity Based Costing
3(a)7Profit-maximising production mix when departmental labour hours are fixed and non-transferableApplications of Marginal Costing in Short Term Decision Making
3(b)7Transfer price for a captive division under profit margin, return on investment and cost-plus strategiesTransfer Pricing
4(a)7Deriving fixed costs and unit contributions of two products from break-even and indifference pointsMarginal Costing (Management Accounting)
4(b)7Pricing a special export order using spare capacity and semi-variable cost behaviourApplications of Marginal Costing in Short Term Decision Making
5(a)7Labour rate, efficiency, mix and total cost variances for a mixed-grade work groupStandard Costing and Variance Analysis (Management Accounting)
5(b)7Fixed overhead expenditure, calendar, capacity, efficiency, volume and cost variancesStandard Costing and Variance Analysis (Management Accounting)
6(a)7Production budget and department-wise direct labour budget allowing for normal loss and stock changesForecasting, Budgeting and Budgetary Control
6(b)7Flexible budget: unit cost at lower and higher capacity with partly variable expensesForecasting, Budgeting and Budgetary Control
7(a)7EBIT and economic value added using CAPM-based cost of equity and an unrecorded intangibleDivisional Performance Measurement
7(b)7Accepting a bulk order when labour time falls under a learning curve effectApplications of Marginal Costing in Short Term Decision Making
8(a)7Probability of break-even, of a target profit and expected profit from a sales distributionDecision Theory
8(b)7Types of responsibility centres and their featuresResponsibility Accounting

What stood out

  • Twelve of the fourteen written parts were numerical; only the scope of management accounting and types of responsibility centres were theory.
  • Marginal costing applications dominated Section B with three parts (limiting factor, export order pricing, learning-curve order acceptance) plus a break-even and indifference-point puzzle.
  • Variance analysis took a full 14-mark question split between labour mix variances and a six-way fixed overhead variance analysis.
  • Budgeting had two parts (functional production and labour budget, flexible budget), and EVA appeared under divisional performance measurement.
  • The MCQ section covered all ten chapters, giving every chapter one or two questions, so selective study is risky in this paper.

Practise the chapters that carried the marks

Applications of Marginal Costing in Short Term Decision Making, Standard Costing and Variance Analysis (Management Accounting), Forecasting, Budgeting and Budgetary Control: study guides and practice questions in the CMA Intermediate format.