What Are Relevant Costs?
Relevant costs are future, incremental cash costs caused by a decision. Learn the three features, opportunity and avoidable costs, and what to ignore.
Updated June 2026
CIMA guides
CIMA Subject Help
Plain-English explainers for the syllabus topics students search for mid-revision: cost behaviour, absorption and activity-based costing, relevant costs, budgeting, IFRS 15 and the rest. Each guide is mapped to the paper it serves, links the related concepts, and connects to the full VIVA course for that subject when you want the structured version with practice questions.
What Is Absorption Costing?
Absorption costing charges production overheads to each unit via an overhead absorption rate (OAR), giving a full production cost. Worked example inside.
Updated June 2026
What Is Activity Based Costing?
Activity based costing explained for CIMA students: cost drivers, cost objects, the five-step ABC process and a worked example - plus why ABC beats absorption costing.
Updated June 2026
Cost Behaviour: The 4 Types of Cost Explained
Cost behaviour is how costs change with activity. Learn the four patterns - fixed, variable, stepped and semi-variable costs - with clear CIMA examples.
Updated July 2022
CIMA Costing Definitions: Key Terms Explained
Clear definitions of the core costing terms: direct and indirect costs, cost centres, and the classification of materials, labour and expenses, with examples.
Updated July 2022
Financial Objectives for Different Entities
Objectives differ by entity type: profit-making firms maximise shareholder wealth; not-for-profits pursue value for money - economy, efficiency, effectiveness.
Updated July 2022
IFRS 15 Revenue: The 5-Step Model Explained
IFRS 15 recognises revenue using a five-step model: identify the contract and performance obligations, determine and allocate the price, then recognise revenue.
Updated July 2022
Sources of Long-Term Finance: Equity vs Debt
Long-term finance splits into equity (ordinary and preference shares) and debt (bank loans, bonds and convertible bonds), with hybrids in between.
Updated July 2022
Why is Budgeting Important to a Business?
A budget does five jobs (PRIME): planning, responsibility, integration, motivation and evaluation - helping a business plan, coordinate and control performance.
Updated July 2022
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