The CGMA exam is formatted as a case study in which you are asked to take the role of a senior management accountant. The entire exam will carry you through the case study and you will fulfill tasks (make recommendations and decisions) based on information you receive during the exam.
This exam simulation is not formatted like the actual CGMA exam. It is a tool designed to give you an idea of the types of tasks you will be asked to carry out on the exam.
At the end of December 2014, La Vie will have 630 shops in operation worldwide, and sales of almost €2.8 billion.
Founded on the fast-fashion principle where speed from drawing board to retail store is vital, the company
operates in the highly competitive clothing retail market in difficult trading conditions. The final accounts
for the year ending 31 December 2014 show that the company will achieve the forecasted operating profit of €634
million (before finance costs and taxes). The latest full year forecast for 2015 shows that the planned
operating profit of €690 million should be achieved.
You’ve just been hired as an executive management accountant for La Vie clothing company — a retail fashion chain that operates in Europe selling trendy clothing for men, women and children as well as home furnishings. As the executive management accountant, you report directly to the CEO.