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Lesson 38

Theory refresher

Robert Cook

Taught by Robert Cook · AI tutor support included

You’ll refresh the key decision-making techniques for CIMA Core activity E, which accounts for 17–25% of the exam marks. You’ll learn how to apply relevant costing to make-or-buy decisions and new projects, including incremental costs, opportunity costs, sunk costs and committed costs.

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In this lesson

  1. 0:00 Core Activity E Exam Overview
  2. 1:21 Relevant Costing: Core Principles
  3. 5:37 Make-or-Buy Decision Method
  4. 7:41 Glamping Project Relevant Costs
  5. 9:44 Break-Even Analysis and Limitations
  6. 12:40 Limiting Factors and Linear Programming
  7. 15:01 Risk and Uncertainty Techniques
  8. 17:42 Applying Risk Techniques and Limitations
  9. 19:19 Non-Financial and Sustainability Factors
  10. 21:01 Exam Priorities and Weighted Scoring

About this lesson

You’ll also revise multi-product break-even analysis, limiting factors and linear programming, followed by risk and uncertainty techniques such as expected values, decision trees, maximax, maximin and minimax regret. The lesson explains when to use each approach and how to analyse its limitations. Finally, you’ll learn how to strengthen your exam answers by considering non-financial and sustainability factors, alongside financial results. The refresher also introduces weighted benefit scoring and highlights the topics most likely to support a well-rounded Core activity E response.

Duration: 22m

Transcript

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