CA Inter Costing Exam Analysis Jan 2026 by CA Sunil Keswani

CA Inter Costing Exam Analysis Jan 2026 provides a detailed review of the CA Inter Costing paper of the 12th January examination. It focuses on overall difficulty levels, key challenging areas, and the examiner’s testing approach.

The paper featured a balanced combination of easy, moderate, and complex questions, assessing both theoretical understanding and practical application. While the MCQ section was largely straightforward and scoring, the descriptive section demanded strong conceptual clarity and careful calculations. Topics such as Cost Sheet, Process Costing, and Overheads required deeper analysis and time management. Overall, the exam tested students’ ability to apply costing concepts accurately under exam pressure.

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CA Inter Costing Exam Analysis Jan 2026

Below, we have provided a detailed CA Inter Costing Exam Analysis Jan 2026 covering the overall difficulty level, section-wise review, and key topics tested. 

The paper had easy MCQs but a demanding descriptive section with new question formats. This analysis highlights important problem areas, examiner trends, and helps students understand the paper pattern clearly. 

Analysis of the MCQ Section

The Multiple Choice Question (MCQ) section of the CA Inter Costing paper was notably very easy and manageable. Students who had prepared thoroughly for MCQs found it a scoring opportunity, potentially helping them secure passing marks for the overall paper. The questions were direct, lacking exceptionally technical problems.

A brief overview of the MCQ topics included:

• Employee Cost: Focused on calculations related to time and the number of workers.

• Material Cost: Involved simple material consumed calculations, often linked to the Inventory Turnover Ratio (ITR) concept.

• Overheads: A concise point extracted from a larger question on estimating overheads, specifically concerning spare parts.

• Standard Costing: A standard question requiring the identification of a missing figure.

• Job Costing / Overheads: Tasked with calculating a recovery rate.

• Marginal Costing: A standard question on changes in sales mix, a concept well-covered in study modules.

• Material Cost: A basic Economic Order Quantity (EOQ) question.

Analysis of the Descriptive Section

The descriptive section was where the institute significantly challenged students, presenting a balanced paper with both easy and tricky questions. It was designed to test students' patience and analytical skills with new question formats.

Question-by-Question Breakdown:

• Joint & By-Products: The initial question was a new type of question involving calculations for containers and their quantities, which could have been unsettling. This was followed by a more typical question on joint cost distribution and further processing decisions.

• Employee Cost: This question was directly from the practice materials provided in the course textbook, focusing specifically on time calculations.

• Cost Sheet: While generally standard, this question contained one major tricky point: the calculation of direct expenses. The trap lay in direct expenses being given per hour, without the total hours. Students had to first derive the total hours by utilizing the given total labor amount and the wage rate per hour, making it a missing figure calculation. The remainder of the question involved standard closing stock valuation.

• Process Costing: This was identified as a new type of question and included a complex point on abnormal loss. The language used was tricky, making it an above-average or difficult question for many, despite a process accounting question being anticipated.

• Service Costing: A normal question, similar to formats seen in previous examinations, involving aspects of a loan.

• Batch Costing: The calculation of quantity was a new element in this question, though the cost calculation part remained standard.

• Standard Costing: This question was normal and straightforward, posing no significant difficulties.

• Overheads (Machine Hour Rate): A question on Machine Hour Rate (MHR) was expected. However, The Trap involved providing the final MHR and requiring students to work backward to find a missing figure (the insurance amount). This reverse calculation can be particularly tricky for those unfamiliar with such variations from past papers.

• Budgetary Control: A standard question on calculating opportunity cost, falling under the control ratios topic.

• Theory Questions: The theory questions originated from expected chapters, including Introduction to Cost Accounting, Employee Cost, and Budgeting.

Post-Exam Strategy & Advice

It is important to remember that what is done is done. Avoid stressing over checking MCQ answers now, as it only generates unnecessary anxiety. The most critical step is to leave this paper behind and focus entirely on the next two papers.

Recommended Study Schedule:

• Today, Tomorrow, and up to Lunch on the 14th: Dedicate this period completely to preparing for your Audit paper. Many students find Audit challenging, so utilize this time effectively to strengthen your grasp of the subject.

• From the 14th onwards: Begin your preparation for the FM & SM paper. A detailed strategy for this paper will be provided separately.

The key is to not panic and to leverage the significant gap between papers to your advantage. Strive to make your performance in the upcoming two papers your best.