Overview
CA Intermediate Paper 4 under ICAI's new scheme has 30 marks of case-based and standalone MCQs (Part I) and 70 marks of descriptive questions (Part II). In Part II, Question 1 is compulsory and candidates pick four of the remaining five, so a topic can appear without every candidate attempting it.
Across the three sittings indexed here, the MCQ cases rotated between costing systems (ABC, process, overheads) and planning tools (budgets, EOQ, CVP), while Part II consistently mixed a cost sheet, standard costing variances, a reconciliation or service-costing question and one theory question.
Written exam · 100 marks · 3 hours · Part I: 30 marks of MCQs (OMR) · Part II: 70 marks, Q1 compulsory plus any four of Q2–Q6
Worth knowing
- Marks in the topical index include optional questions (Q2–Q6), so each sitting shows 114 marks set against 100 marks attempted.
- ICAI published examiners' comments for January 2026; we could not find comments for May or September 2026 on ICAI's suggested-answers pages, so those analyses are marked unavailable.
- The May 2026 and January 2026 question papers on ICAI's site are scanned images; their topics are indexed from ICAI's suggested answers, which restate each question.
Sittings and official links
Each paper link opens the official PDF on ICAI's website. Our analysis page for each sitting lists every question with its topic, marks and pass rate.
| Sitting | Exam date | Question paper | Examiners' comments | Suggested answers | Pass rate | Our analysis |
|---|---|---|---|---|---|---|
| September 2026 | 8 September 2026 | Not found | – | September 2026 analysis | ||
| May 2026 | May 2026 | Not found | – | May 2026 analysis | ||
| January 2026 | January 2026 | – | January 2026 analysis |
Yearly topical index
Marks per area in each sitting, from our reading of the official papers. Most-examined areas first. MCQ items are counted under their own area. Tap an area to practise its chapter MCQs.
| Area | January 2026 | May 2026 | September 2026 | Total | Sittings |
|---|---|---|---|---|---|
| Overheads and cost allocation | 15 | 10 | 12 | 37 | 3/3 |
| Marginal costing and CVP | 13 | 13 | 7 | 33 | 3/3 |
| Budgets and budgetary control | 5 | 9 | 17 | 31 | 3/3 |
| Standard costing and variances | 9 | 11 | 9 | 29 | 3/3 |
| Cost sheet | 9 | 7 | 11 | 27 | 3/3 |
| Employee cost and incentives | 11 | 11 | 4 | 26 | 3/3 |
| Material cost and inventory control | 12 | 7 | 6 | 25 | 3/3 |
| Activity-based costing | 4 | 10 | 10 | 24 | 3/3 |
| Process and operation costing | 5 | 10 | 7 | 22 | 3/3 |
| Unit, batch and job costing | 6 | 7 | 7 | 20 | 3/3 |
| Cost accounting systems and reconciliation | 7 | 4 | 7 | 18 | 3/3 |
| Joint products and by-products | 5 | 8 | 5 | 18 | 3/3 |
| Service costing | 8 | 2 | 7 | 17 | 3/3 |
| Introduction to cost and management accounting | 5 | 5 | 5 | 15 | 3/3 |
Question-by-question index
| Sitting | Q | Main area | Marks | Pass rate | Walkthrough |
|---|---|---|---|---|---|
| September 2026 | Part I (MCQs) | MCQs (mixed areas) | 30 | – | – |
| September 2026 | Q1 | Marginal costing and CVP | 14 | – | – |
| September 2026 | Q2* | Budgets and budgetary control | 14 | – | – |
| September 2026 | Q3* | Cost accounting systems and reconciliation | 14 | – | Open |
| September 2026 | Q4* | Standard costing and variances | 14 | – | – |
| September 2026 | Q5* | Cost sheet | 14 | – | – |
| September 2026 | Q6* | Introduction to cost and management accounting | 14 | – | – |
| May 2026 | Part I (MCQs) | MCQs (mixed areas) | 30 | – | – |
| May 2026 | Q1 | Unit, batch and job costing | 14 | – | – |
| May 2026 | Q2* | Cost sheet | 14 | – | – |
| May 2026 | Q3* | Joint products and by-products | 14 | – | – |
| May 2026 | Q4* | Budgets and budgetary control | 14 | – | – |
| May 2026 | Q5* | Activity-based costing | 14 | – | Open |
| May 2026 | Q6* | Material cost and inventory control | 14 | – | – |
| January 2026 | Part I (MCQs) | MCQs (mixed areas) | 30 | – | – |
| January 2026 | Q1 | Overheads and cost allocation | 14 | – | – |
| January 2026 | Q2* | Cost sheet | 14 | – | Open |
| January 2026 | Q3* | Service costing | 14 | – | – |
| January 2026 | Q4* | Standard costing and variances | 14 | – | – |
| January 2026 | Q5* | Overheads and cost allocation | 14 | – | – |
| January 2026 | Q6* | Introduction to cost and management accounting | 14 | – | – |
Trends across sittings
Patterns in the 3 indexed sittings. With so few papers under the current scheme, treat these as patterns to inform revision, not predictions of what will be set.
In every sitting (14)
- Overheads and cost allocation – 12.3 marks on average
- Marginal costing and CVP – 11 marks on average
- Budgets and budgetary control – 10.3 marks on average
- Standard costing and variances – 9.7 marks on average
- Cost sheet – 9 marks on average
- Employee cost and incentives – 8.7 marks on average
- Material cost and inventory control – 8.3 marks on average
- Activity-based costing – 8 marks on average
- Process and operation costing – 7.3 marks on average
- Unit, batch and job costing – 6.7 marks on average
- Cost accounting systems and reconciliation – 6 marks on average
- Joint products and by-products – 6 marks on average
- Service costing – 5.7 marks on average
- Introduction to cost and management accounting – 5 marks on average
Rotating (0)
None.
Not yet examined (0)
Every area we track has appeared at least once.
Average marks by area
Average marks per sitting across the indexed papers.
What to prioritise
- Heaviest areas. Overheads and cost allocation (12.3 marks a sitting); Marginal costing and CVP (11 marks a sitting); Budgets and budgetary control (10.3 marks a sitting); Standard costing and variances (9.7 marks a sitting). Between them these carry about 43 of every 100 marks.
- Don't skip the short areas. The MCQs and shorter questions regularly test smaller areas. Chapter MCQs are the fastest way to cover them.
- Check the syllabus. Marks in the topical index include optional questions (Q2–Q6), so each sitting shows 114 marks set against 100 marks attempted.
Practice questions on the most-examined areas
Original exam-style questions written by us, with our own numbers. Try each before opening the solution.
Original practice question
Cost sheet from partial data
Raw materials: opening ₹50,000, purchases ₹4,00,000, closing ₹60,000. Direct wages ₹2,00,000; direct expenses ₹30,000. Factory overheads ₹1,50,000. WIP: opening ₹40,000, closing ₹50,000. Production administration ₹20,000. Finished goods: opening ₹60,000, closing ₹90,000. Selling and distribution ₹50,000. Profit is 20% of sales.
Required: Prepare the cost sheet and find sales.
Show worked solution
| Cost sheet | ₹ |
|---|---|
| Raw materials consumed: 50,000 + 4,00,000 − 60,000 | 3,90,000 |
| Direct wages + direct expenses | 2,30,000 |
| Prime cost | 6,20,000 |
| Factory overheads | 1,50,000 |
| Add opening WIP / less closing WIP | (10,000) |
| Works cost | 7,60,000 |
| Production administration | 20,000 |
| Cost of production | 7,80,000 |
| Add opening / less closing finished goods | (30,000) |
| Cost of goods sold | 7,50,000 |
| Selling and distribution | 50,000 |
| Cost of sales | 8,00,000 |
| Profit: 8,00,000 × 20/80 | 2,00,000 |
| Sales | 10,00,000 |
Answer: Sales ₹10,00,000; profit ₹2,00,000.
Topic seen in CA Inter Paper 4 January 2026 Q2 – full walkthrough there.
Original practice question
Traditional vs ABC overhead per unit
Two products: P (1,000 units, 2 labour hours each) and Q (500 units, 2 labour hours each). Overheads ₹1,20,000: set-up costs ₹60,000 (P 5 set-ups, Q 15) and inspection costs ₹60,000 (P 10 inspections, Q 30). Traditionally overheads are absorbed on labour hours.
Required: Compare overhead per unit under both methods.
Show worked solution
| Working | P | Q |
|---|---|---|
| Traditional: ₹1,20,000 ÷ 3,000 hours = ₹40/hour × 2 | ₹80 | ₹80 |
| Set-ups: ₹60,000 ÷ 20 = ₹3,000 each | ₹15,000 | ₹45,000 |
| Inspections: ₹60,000 ÷ 40 = ₹1,500 each | ₹15,000 | ₹45,000 |
| ABC total | ₹30,000 | ₹90,000 |
| ABC per unit | ₹30 | ₹180 |
Answer: P falls from ₹80 to ₹30 per unit and Q rises from ₹80 to ₹180: Q drives most set-ups and inspections despite its lower volume.
Topic seen in CA Inter Paper 4 May 2026 Q5 – full walkthrough there.
Original practice question
Reconciling cost and financial profit
A manufacturer's cost accounts show a profit of ₹4,50,000. In the financial accounts: actual factory overheads exceeded the amount absorbed in cost accounts by ₹30,000; closing stock was valued ₹20,000 lower than in cost accounts; dividends received were ₹15,000; preliminary expenses of ₹10,000 were written off. The cost accounts include notional interest on capital of ₹25,000.
Required: Calculate the profit as per financial accounts.
Show worked solution
| Item | ₹ |
|---|---|
| Profit as per cost accounts | 4,50,000 |
| Add: dividends received (financial only) | 15,000 |
| Add: notional interest (cost only) | 25,000 |
| Less: under-absorbed factory overheads | (30,000) |
| Less: lower closing stock in financial books | (20,000) |
| Less: preliminary expenses written off | (10,000) |
| Profit as per financial accounts | 4,30,000 |
Answer: ₹4,30,000.
Topic seen in CA Inter Paper 4 September 2026 Q3 – full walkthrough there.
CA Inter Paper 4 chapter MCQs
Free MCQs with explanations for every area in the index.