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CMA Intermediate · June 2026 · Paper 8

CMA Intermediate Cost 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)7Cost and profit statement for a manufacturer with opening and closing inventories and overheads linked to labour and salesIntroduction to Cost Accounting
2(b)7Total inventory cost of the current ordering policy versus the economic order quantity and the resulting savingMaterial Costs
3(a)7Treating under-absorbed production overheads split between abnormal causes and normal cost increasesOverheads
3(b)7Journal entries under an integrated accounting system for materials, wages and overhead absorptionIntegrated Accounting System
4(a)7Hotel operating costing: room tariffs for different room types with occupancy levels and a profit marginOperating Costing - Transport, Hotel and Healthcare
4(b)7Contract account and contractee's account over two years with notional profit and completionContract Costing
5(a)7Process costing with closing work-in-progress: equivalent production, cost per unit and process accountProcess Costing
5(b)7Labour cost, rate, efficiency, revised efficiency and mix variances for a mixed-grade workforceStandard Costing and Variance Analysis
6(a)7Break-even sales, sales needed for a target return on investment and profit at a given volumeMarginal Costing
6(b)7Optimal product mix when raw material is the limiting factor and resulting profitMarginal Costing
7(a)7Quarterly production budget and identifying the quarter in which break-even is reachedBudget and Budgetary Control
7(b)7Scope and measurement principles of the cost accounting standard on direct expensesCost Accounting Standards (CAS 1 to CAS 24)
8(a)4Differences between financial accounting and management accountingIntroduction to Cost Accounting
8(b)5Essential features of a sound purchasing procedureMaterial Costs
8(c)5Characteristics of job costingJob Costing

What stood out

  • Eleven of the fifteen written parts were numerical, so Section B rewarded practice in cost computations more than theory reading.
  • Marginal costing was the most tested chapter overall: two written parts (break-even with target return, limiting-factor product mix) plus three MCQs.
  • Each method of costing got a turn: contract, process, operating (hotel) and job costing all appeared, with batch costing in the MCQs.
  • Question 8 was a short-note style theory question (4+5+5 marks) and, with the cost accounting standard part in Question 7, offered an escape route for candidates weaker in numericals.
  • Cost accounting standards were tested in two MCQs and one written part, so the CAS summaries deserve dedicated revision.

Practise the chapters that carried the marks

Marginal Costing, Material Costs, Introduction to Cost Accounting: study guides and practice questions in the CMA Intermediate format.