SCMPE – Strategy to score

SCMPE – Strategy to score


Studying this subject feels like being in a never-ending race. Just when you think you’re ahead, you turn the page and find another marathon.

Yes, you guessed it right – SCMPE – The name of the subject is itself so complicated … “Strategic cost management and performance evaluation. A significant reason for the difficulty behind this subject is its mixture of heavy theory and heavy practical concepts. The first of suggestions we’d like to state has to be to study this subject with an actual consultant mindset. 

To a major extent, Group 2 is dependent on this paper. Oh yes, it is the crossroad of success – it can either build you up or break you down. Which is exactly the reason, there should be a detailed and appropriate approach to the subject.  Below are the few given ways to ensure maximum possibility of the subject being the primary factor for clearing the group 2.

This is such a huge and such an important thing to follow. I hope you stay till the end because this section is so huge. Hang in there, fellas!

Detailed Explanation by Krishnam Saraf (AIR 9)
  1. Be a know it all and a have it all: 
  1. BOS, has given immense resources for making SCMPE easier. Below is the list of resources that is available on the website:
  • Skill Assessment – Every question includes as to what is needed in the answer. It is important that students answer according to the verb provided in the question. This document provides an illustrative list of the verbs that appear along with the meaning, in order to facilitate accurate answering for the students.
  • Study material –Most important and required materials which is very underestimated amongst the students. You can use this for conceptual clarity and the sums covered in here as well. 
  • Case study Digest – This serves as a revisionary book and shall help the students to build the gaps between preparation and execution. It is an unmissable book for ensuring full coverage preparation.
  • Additional resources – This provides material and data/ questions pertaining to strategic cost management and performance evaluation. The knowledge update and capsule cover more concepts along with some case studies
  • RTP, MTP and previous papers – One can’t emphasize enough on the importance of covering papers – whether they are MTP, RTP or past papers. This covers papers from November 2021 attempt – all of which should be mandatorily covered. 
  • Referencer for quick revision – It is a compilation of subject-wise capsules that have been published in the monthly journal “The Chartered Accountant student”.
  1. Apart from the above, it is essential to have command on the class materials or the study materials that have been used for conceptual clarity from the beginning.
  1. It is important to have awareness of general marls distribution in order to know your strong and weak points. ICAI – BOS has released the generic weightage system, the link of which is as follows:

  1. Theory V/s Practical:
  1. SCMPE is the complicated mix of theory and practical. Generally, covering theory completely is taxing. It is not feasible to cover all the theory and also retain the same. But in regards to SCMPE, theory is not only important but is also more coveted in exams than the practical part. Thus, undoubtedly you must ensure a tight hold on theory.
  1. As mentioned before, theory is huge. However, it is also extensively present in the chapters. Thus, in order to facilitate easy reading and retention of the theoretical concepts, it is suggested to do cross-referencing to the points that have been discussed at more than one places, to ensure that theory stays in one place for revision. 
  1. In order to facilitate an equal balance, you may set the schedule accordingly for frequent readings of theory. I would suggest reading theory every night for subconscious mind retention.
  1. Practical sums are NOT supposed to be read – writing practice is a must. It is of utmost importance that we first try to solve the problem. While solving, if you get stuck, that’s when you look for solution. Directly reading the sum will cause us to freeze while solving and writing the sums in exams. 
  1. All in all, strong hold is required over both. Using ABC analysis, (marks wise importance), it is necessary that you devise a time table which caters to both – Theory, as well as practical.  
  1. Topic-wise Approach

You cannot leave any of the topics in SCMPE. It is suggested to rather cover shapter on the basis of thery and practical, whichever is more prominent in the chapters. Below is the snapshot of chapters in SCMPE

Core theory chapters:

1: Introduction to Strategic Cost Management 

2: Modern Business Environment 

3: Lean System and Innovation 

4: Cost Management Techniques

5:  Cost Management for Specific Sectors

8: Performance Measurement and Evaluation 

Theory and Practical mix chapters:

6: Decision Making 

7: Pricing Decision 

9: Divisional Transfer Pricing 

10: Strategic Analysis of Operating Income 

11: Budgetary Control 

12: Standard Costing 

13: Case Study

SCMPE is a huge, huge subject. You may revise all the materials once, but how will one retain? – That’s where the next point comes in – 

  1. Retention, Revision and Practice

Ideally, for Theory – Retention and for Practical – Practice, is unskippable. 

  1. First Revision – When you do classes, it should not be considered as revision obviously. So, when one studies first by itself, you should not only try to cover everything but also do markings/ summary notes for the next revision. First revision is only focussed on COVERAGE. That you do all theory, all sums pertaining to the chapter is the motto of the first revision.
  1. Second revision – It is impossible to retain and read everything repeatedly. We have limited time. Thus, during the first reading, the important readings, notes and summary notes shall come to your rescue. It is very effective for retention as well. Since the second reading is for retention, you should focus on that. Give the theory, time to sink in and covering the sums in manner that you start understanding the type of sum is the real win. 
  1. Third revision – This focusses on practice and retention of theory. Use your summary notes prepared in the first 2 readings. In this reading prepare the material that you plan to refer one day before the exam. Ensure maximum coverage and maximum retention. 
  1. Use materials – The ICAI and the classes material should be appropriately referred during the revisions. Also, the early the better – for the MTP, RTP and the past papers. Cover all the materials. This gives you immense and undefeatable confidence. Always write mocks- as many as possible. Test Series you may follow from this link.

Last, but in no way the least, keep yourself first. You are your greatest cheerleader!

Always listen to yourself! Always remind yourself of what you can do!

No one never said it isn’t tough,

But trust yourself, you’re gonna do it.



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