BA1 - Fundamentals of Business Economics

Overview

This subject primarily covers the economic and operating context of business and how the factors of competition, the behaviour of financial markets and government economic policy can influence an organisation. It also deals with the information available to assist management in evaluating and forecasting the behaviour of consumers, markets and the economy in general.

The focus of this syllabus is on providing candidates with an understanding of the areas of economic activity relevant to an organisation’s decisions and, within this context, the numerical techniques to support such decisions.

Summary of syllabus

Each subject is divided into a number of broad syllabus topics.

A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.

It is essential that all topics in the syllabus are studied, as all topics will be examined.

WeightSyllabus Topic
25%A. Macroeconomic and Institutional Context of Business
30%B. Microeconomic and Organisational Context of Business
20%C. Informational Context of Business
25%D. Financial Context of Business

Assessments

  • Format: computer based
  • Availability: on demand at any of the 5,500 Pearson VUE centres around the world
  • Length: 2 hours
  • Questions: BA1, BA2 and BA3 each contain 60 objective test questions, while BA4 contains 85 objective test questions.
  • Marking: computer marked
  • Results: provisional result available immediately followed by confirmation no more than 48 hours later

Further information

Objective Tests are comprised of a range of items including short multiple choice questions, number entry questions, drag and drop questions and other formats. In BA2 and BA3 short scenarios may be given to which one or more objective test questions relate.

BA2 - Fundamentals of Business Economics

Overview

This subject deals with the fundamental knowledge and techniques that underpin management accounting. It identifies the position of the management accountant within organisations and the role of CIMA. The subject portrays the role of management accounting in the contexts of commercial and public sector bodies and its wider role in society.

The identification and classification of costs and their behaviour provides the basis for understanding and applying the tools and techniques needed to plan, control and make decisions. Budgetary control requires the setting of targets and standards which then allow the performance of organisations to be reported and analysed by the calculation of variances. Investment appraisal, break-even analysis and profit maximisation are used to inform both long and short term decision making.

Summary of syllabus

Each subject is divided into a number of broad syllabus topics.

A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.

It is essential that all topics in the syllabus are studied, as all topics will be examined.

WeightSyllabus Topic
25%A. The Context of Management Accounting
10%B. Costing
30%C. Planning and Control
35%D. Decision Making

Assessments

 

  • Format: computer based
  • Availability: on demand at any of the 5,500 Pearson VUE centres around the world
  • Length: 2 hours
  • Questions: BA1, BA2 and BA3 each contain 60 objective test questions, while BA4 contains 85 objective test questions.
  • Marking: computer marked
  • Results: provisional result available immediately followed by confirmation no more than 48 hours later

 

Further information

Objective Tests are comprised of a range of items including short multiple choice questions, number entry questions, drag and drop questions and other formats. In BA2 and BA3 short scenarios may be given to which one or more objective test questions relate.

BA3 - Fundamentals of Business Economics

Overview

The main objective of this subject is to obtain a practical understanding of financial accounting and the process behind the preparation of financial statements for single entities.

These statements are prepared within a conceptual and regulatory framework requiring an understanding of the role of legislation and of accounting standards. The need to understand and apply necessary controls for accounting systems, and the nature of errors is also covered. There is an introduction to measuring financial performance with the calculation of basic ratios.

Summary of syllabus

Each subject is divided into a number of broad syllabus topics.

A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.

It is essential that all topics in the syllabus are studied, as all topics will be examined.

WeightSyllabus Topic
15%A. Accounting Principles, Concepts and Regulations
50%B. Recording Accounting Transactions
30%C. Preparation of Accounts for Single Entities
15%D. Analysis of Financial Statements

Assessments

  • Format: computer based
  • Availability: on demand at any of the 5,500 Pearson VUE centres around the world
  • Length: 2 hours
  • Questions: BA1, BA2 and BA3 each contain 60 objective test questions, while BA4 contains 85 objective test questions.
  • Marking: computer marked
  • Results: provisional result available immediately followed by confirmation no more than 48 hours later

 

Further information

Objective Tests are comprised of a range of items including short multiple choice questions, number entry questions, drag and drop questions and other formats. In BA2 and BA3 short scenarios may be given to which one or more objective test questions relate

BA4 - Fundamentals of Business Economics

Overview

The main objective of this subject is to obtain a practical understanding of financial accounting and the process behind the preparation of financial statements for single entities.

These statements are prepared within a conceptual and regulatory framework requiring an understanding of the role of legislation and of accounting standards. The need to understand and apply necessary controls for accounting systems, and the nature of errors is also covered. There is an introduction to measuring financial performance with the calculation of basic ratios.

Summary of syllabus

Each subject is divided into a number of broad syllabus topics.

A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.

It is essential that all topics in the syllabus are studied, as all topics will be examined.

  
30%A. Business Ethics and Ethical Conflict
45%B. Corporate Governance, Controls and Corporate Social Responsibility
15%C. General Principles of the Legal System, Contract and Employment Law
10%D. Company Administration

Assessments

 

  • Format: computer based
  • Availability: on demand at any of the 5,500 Pearson VUE centres around the world
  • Length: 2 hours
  • Questions: BA1, BA2 and BA3 each contain 60 objective test questions, while BA4 contains 85 objective test questions.
  • Marking: computer marked
  • Results: provisional result available immediately followed by confirmation no more than 48 hours later

 

Further information

Objective Tests are comprised of a range of items including short multiple choice questions, number entry questions, drag and drop questions and other formats. In BA2 and BA3 short scenarios may be given to which one or more objective test questions relate.