Monthly Archives: March 2014

Technical Knowledge & Case Writing

Technical Knowledge & Case Writing


Technical knowledge is very important part for PA exam. Many students do not have enough exposure to previous courses on account of long time gap. Also students found migrating from different countries and obtained exemption from courses studied in their countries. PA exam test the knowledge of students on main concepts they learned and passed out earlier. This knowledge is very important to solve MCQ (Multiple Choice Questions) and case analysis.

PA exam are evaluated on the basis of competencies identified by the student. They expect in depth analysis of the response along with professional approach. Points are allotted on the basis of identification, analysis, alternatives and relevant and effective recommendation. Students are required to identify direct and indirect (integrated) competencies in case analysis. Some time students are required to identify hidden competencies as well.

Effective writing is another important skill required to pass PA exam. Answer should be very well drafted, concise, clear and with easy to flow language. This requires lot of practice for physical writing. You need to have the professional skills (technical knowledge) so you are providing the “meat” for the discussion.  A wonderful write-up of a non-relevant issue is of no use to the reader. On the other hand, you need to be able to show your knowledge in a clear, coherent manner that the reader can understand and be able to use in his/her decision-making. A professional response integrates a discussion of the appropriate technical knowledge with a clearly communicated writing style. It is important to apply conceptual knowledge and exercise judgment. You will have to use your knowledge to solve practical problems. This means you will have to know what parts of that knowledge are relevant in a given situation. You also will need to be able to identify the problem from the facts provided.  You will have to consider alternatives, analyze them using your core knowledge and exercise your judgment in choosing one alternative.  Finally you must support your recommendation with a logical argument flowing from your analysis. Write your answer with proper heading and sub-headings; do not write case analysis like a story. There are many competencies that marker need to assess form your response, and therefore well-organized professional write up is the key to get success in the final exam.


Budget & Budgetary Control

Budget and Budgetary Control system:


Budget is a financial document prepared prior to the beginning of a financial period. It consists of a planned financial data about expected outcome for the next year. Budget document is prepared for both revenue and capital expenditure.

For manufacturing industries, budget preparation starts right from the preparation of Sales Budget.Sales department indicates expected sales target based on the past year data and future year trend. It consists of product-wise   quantities and prices both. On the basis of Sales budget, Production department prepare, department-wise, process-wise budget,clearly identifying, requirement of materials, stores,  spares, labor requirement, utilization of machinery and all manufacturing overhead expenses.

On the basis of sales and production budget, finance department prepare administration and sales expenses based on past year data. He also prepare detail capital expenses budget in consultation with all department head and CEO.

After compilation of all data, CFO prepares budgeted financial statements and expected requirement of finance for long term and short term bank finance

Budgetary Control System:

At the end of each month budgeted data are compared with actual and detail variance analysis statements are generated. In ERP system, statements are available on line. Analysis of significant variance will be reported to the management for future action to control cost. A forecast for the balance period is also prepared for planning and managerial decisions