CIMA P1 Formula Sheet
The key formulas for CIMA P1 (Management Accounting) on a single A4 page, free to download and print. Built to the paper's current examinable scope.
P1 Formula Sheet · PDF · 1 page · A4 · print-ready
Download the P1 formula sheetUpdated 25 September 2026: the Σ in the NPV formula now prints correctly, and the sheet has been re-typeset with proper maths symbols. If you printed an earlier copy, please download it again.
The formulas on the P1 sheet
The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.
Cost Behaviour & Absorption Costing
- High-low: VC/unit = (High cost − Low cost) ÷ (High units − Low units)
- Fixed cost = Total cost − (VC per unit × Units)
- OAR = Budgeted overhead ÷ Budgeted activity level
- Under/over absorption = Absorbed OH − Actual OH
Material & Labour Variances
- Mat. price = (Std price − Actual price) × Actual qty purchased
- Mat. usage = (Std qty for AO − Actual qty used) × Std price
- Labour rate = (Std rate − Actual rate) × Actual hours paid
- Labour eff. = (Std hrs for AO − Actual hrs worked) × Std rate
- AO = actual output
Mix & Yield Variances
- Mix (per material) = (Actual total input × std mix % − Actual qty) × Std price
- Yield = (Actual output − Std output for actual input) × Std cost/unit output
- Mix + Yield = total usage/efficiency variance
Overhead Variances
- Var OH exp. = (Actual hrs × Std rate) − Actual variable OH
- Var OH eff. = (Std hrs for AO − Actual hrs) × Std rate
- Fixed OH exp. = Budgeted FOH − Actual FOH
- Fixed OH vol. = (Actual output − Budgeted output) × Std FOH/unit
- Fixed OH cap. = (Actual hrs − Budgeted hrs) × Std FOH rate
- Fixed OH eff. = (Std hrs for AO − Actual hrs) × Std FOH rate
Sales Variances
- Sales price = (Actual price − Std price) × Actual volume sold
- Sales volume (contribution) = (Actual vol − Budgeted vol) × Std contribution/unit
- Sales mix = (Actual total sales × std mix % − Actual qty) × Std margin/unit
- Sales quantity = (Actual total sales at std mix − Budgeted qty) × Std margin/unit
Contribution & Break-even
- Contribution = Selling price − Variable cost per unit
- BEP (units) = Fixed costs ÷ Contribution per unit
- C/S ratio = Contribution ÷ Sales revenue
- MoS % = (Budgeted − BEP sales) ÷ Budgeted sales × 100
Inventory Management (EOQ)
- EOQ = √(2 × Co × D ÷ Ch)
- Co = order cost, D = annual demand, Ch = holding cost/unit/year
Throughput Accounting
- Throughput/unit = Selling price − Direct material cost/unit
- TPAR = (Throughput/unit ÷ Bottleneck time/unit) ÷ (Total factory cost ÷ Total bottleneck time)
- TPAR > 1 = process profitable at current cost structure
Investment Appraisal
- Payback = Initial investment ÷ Annual cash inflow
- NPV = Σ discounted cash flows − Initial investment
- ARR = Average annual profit ÷ Average investment × 100
- IRR (interpolation) = L + [NPVL ÷ (NPVL − NPVH)] × (H − L)
How to use it
A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.
Print it and keep it beside you while you work through P1 questions. Once you stop reaching for it, you know the formulas are in place.
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This sheet is an original compilation of standard formulas mapped to CIMA P1's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all CIMA formula sheets. GoQualified is not affiliated with CIMA.