How to get an Exemption in Costing in CA Inter

Costing is one of the crucial subjects of the CA Intermediate. Costing is known as Cost and Management Accounting. This subject is challenging, and students often find it difficult to grasp because it combines both theoretical and practical components. To deal with the complexities, students need to follow a balanced approach that focuses on conceptual understanding and problem-solving. 

Exemption is one of the best parts to crack the costing exam in one go. To achieve exemption in costing, students have to plan strategically and focus on practicing and revising. In this guide, we will help you understand the concept of exemption with the steps of getting an exemption in CA Inter costing.

What is an Exemption in Costing in CA Inter 

The exemption refers to securing 60 + marks in costing. According to the ICAI guidelines, these marks are carried forward to the next attempt if you are unable to qualify for other exams in this attempt. 

It means if you appear again for CA Inter Group 1 and already scored 60 + marks in costing, you will get an exemption and will only be liable to give exams of the remaining subjects. 

Important Points about Exemption 

• The exemption is valid for the next three attempts. 

• If you get an exemption, it will automatically apply to the next attempts.

• If you achieve more than 60 marks in costing, you will be rewarded with the exemption and not need to reappear for the costing subject in the next attempt. 

• The exemption in costing reduces the exam burden and helps in time management for other subjects.

• The knowledge of costing at the Intermediate level works as a base for the final level subjects (Financial Management and Strategic Cost Management). 

How to Secure Exemption in CA Inter Costing

To secure exemptions in CA Inter costing, students have to understand the paper and prepare a proper strategy to deal with the complexities. 

1. Understand the Paper Structure 

• Students should keep one thing in mind that costing is not a subject that you can memorize, as you require conceptual understanding and the logical explanation of the formulas and topics.

• Students need to work equally on both the theory and the practical portion. Sometimes, students focus on the practical portion and lose marks in theory.

• Most importantly, the revision and practice. Students have to solve revision test papers, mock test papers, and past paper questions.

2. Deeply Understand the Syllabus 

Do a deep analysis of the topics because white range of concepts are covered in costing. Analyse the whole syllabus based on the weightage, for example, 20-25% weightage is given to the material, labour, and overhead costing, 10 to 15% to marginal costing, activity-based costing, and standard costing, etc. 
 

So, focus on high-weightage areas and the topics that are repeatedly asked by the examiner. 
 

Important Note:

Most of the costing paper part deals with the practical questions, and only 20 to 25 marks are given to the theory-based portion. The theory portion is the best scoring opportunity where students can easily answer the questions in less time. 

3. Focus on Logical Understanding 

• Learn all the chapters and topics through logical understanding rather than focusing on rote memorization. 

• If required, take expert classes of CA Ranjan Periwal because his costing classes are completely focused on the real-life examples and concept building that are necessary for practical understanding. 

• Follow the ICAI study material and guidelines while preparing. 

4. Prepare a Smart Study Plan 

Divide your available time into phases. Start your preparation at least 3 months before the exam. 

• In the first month, focus on concept building using ICAI study material, illustrations, and real-life examples. 

• In the second month, focus on practicing and start solving questions from each topic, attempt mock test papers, and revision test papers. 

• At the end, in the last month, revise the syllabus 2-3 times and attempt full-length mock tests based on the exam conditions. 

5. Work on Presentation and Other Skills 

In costing, you will get step-wise marking. For a good score, focus on the presentation skills. 

• Use proper headings and subheadings. 

• Explain the important points in working notes.

• Use charts and tables for diagrammatic representation. 

• Clearly show the formulas that how you substitute values using that formula. It will count in the step-wise marking. 

• Moreover, work on time management and problem-solving skills for better performance. 

Important Tips to Secure 90 + or Full Marks in CA Inter Costing 

• Maintain a balance between the theory and the practical portion. 

• Prepare short notes using flash cards in your own language for the theoretical portion. Try to revise them daily for 20 minutes in the morning. 

• Attempt at least 3 full-length mock tests before the exam.

• Maintain consistency and study at least 2 to 3 hours daily.

• Solved at least two practical questions daily. 

• Follow ICAI guidelines and solve previous year papers. 

• Focus on logic instead of memorization because memorization is not possible without logic.

• Do not ignore small topics; give proper time to each chapter, including small topics.

Conclusion 

Yes, sometimes students find it difficult to secure an exemption in CA Inter costing, but with the right approach and consistency, it is possible. By focusing on the logical aspect, students can easily secure an exemption with 60 + marks. 
 

Students have to follow the ICAI guidelines, study material, and work on skills like consistency, time management, presentation, and concepts. The exemption in costing works as an advantage for the next attempt because you can easily focus on other subjects.