SumTrix CIMA OCS Preseen – November 2025 – February 2026

Introduction 

The Operational Case Study (OCS) exam challenges students to think and act like a Finance Officer inside a real business. For the November 2025 – February 2026 sitting, that business is SumTrix, a Northern European ski manufacturer with a strong brand in freestyle and touring skis.

This blog unpacks the pre-seen material, connects it to real-world industry insights, and shows how examiners will test students through the “I can” statements, the competences at the heart of the case study exam.

Company Overview & Market Landscape

The Company  

SumTrix was founded ten years ago by three friends who combined their engineering knowledge with a passion for freestyle skiing. What started in a small mountain workshop in Gornegraten is now a niche manufacturer with a reputation for:

• Freestyle skis — colourful, durable, and designed for acrobatics.
• Touring skis — lightweight, strong, and popular with adventure skiers.
• Custom skis — bespoke designs for professionals and enthusiasts.
• Accessories — helmets, goggles, gloves, and poles, bought in and branded.

The company is still owned by its three founders, which preserves its original culture but also raises questions about governance and succession.

SumTrix’s success rests on a balance of performance, design, and sustainability. Its skis are handmade in batches, emphasising craftsmanship. Its brand identity is reinforced through unique artwork, influencers, and social media. However, its financial margins are modest compared to global giants, highlighting the tension between brand differentiation and scale.

The Industry Context

The ski equipment industry is both global and seasonal. In 2024, it generated R$1.79bn in revenue, with Europe making up R$0.5bn. However, the market is highly concentrated — 75% of production is controlled by five multinational brands, leaving smaller firms like SumTrix to compete in niches.

Industry dynamics shaping SumTrix:

• Climate change: unpredictable snowfall reduces ski seasons; ski resorts rely on snowmaking technology, while consumers expect eco-friendly products.
• Technology: CAD design, robotics, and 3D printing enable innovation, precision, and efficiency. Smart skis and high-tech accessories (like UV-protected goggles) are becoming standard.
• Globalisation: skiing is spreading beyond Europe and North America to Asia-Pacific and South America.
• Changing consumer preferences: growth of touring skis as people seek adventure and connection with nature.
• Influencers: social media personalities shape consumer choices, particularly among younger skiers.
• Online retail: digital platforms allow direct-to-consumer models, though many still prefer the in-store experience for skis.

For SumTrix, these dynamics offer opportunities (e.g., sustainability as a differentiator) but also threats (competition from large players, shorter ski seasons).

Financial and Operational Insights

Financial Insights

SumTrix’s financial statements for the year ended 30 June 2025 show a company with solid sales growth but tight profitability:

• Revenue: R$14.1m, up from R$13.25m in 2024.
• Gross margin: 39.7%, showing good control of production costs.
• Operating margin: 6.6%, but reduced to 5.7% profit before tax due to high marketing and distribution costs.
• Cash position: Positive (R$290k), though modest in the context of seasonal cash demands.
• Borrowings: R$1.95m in 2024 reduced to R$1.95m → R$1.95m, indicating some repayment but continued reliance on debt.
• Equity growth: Retained earnings have strengthened to R$4.16m, showing consistent though modest profit generation.

The budget for 2026 projects revenues of R$15.0m with a higher gross profit margin (41.3%), suggesting efficiency gains in production or pricing. Custom skis stand out with 50.7% margins, while accessories are weaker at 31.4%, signalling lower profitability but possible brand-building potential.

Operational Insights

SumTrix’s operations reveal a mix of strengths and vulnerabilities:

• Production model: Handmade, batch production (50 pairs) with strong quality control. This reinforces brand reputation but limits scalability.
• Seasonality: Demand spikes in November–April. Production is continuous, but sales cash inflows are concentrated, creating working capital pressure.
• Suppliers: Diverse sourcing — bamboo from China, maple from North America, local suppliers for edges and bindings. This spreads risk but creates exposure to currency fluctuations and supply chain disruptions.
• Sales channels: 61% through retailers, 39% through the website. Retail ensures volume but reduces control over margins; online offers higher margins and brand engagement.
• Human resources: 125 employees, with skilled technicians central to the production process. Labour efficiency and retention are critical.
• Technology adoption: Early steps in using AI for customer advice on the website, but limited automation in production compared to competitors experimenting with robotics and 3D printing.

Together, these insights show that SumTrix is a well-run niche firm but faces the classic tension between craftsmanship and scalability, as well as seasonal cash challenges.

How the Exam Tests Students Using ‘I Can’ Statements

The OCS exam doesn’t just test knowledge — it tests your ability to apply knowledge in real-life contexts. The “I can” statements describe what you will be expected to demonstrate. Let’s connect them to SumTrix.

Mastering the Numbers: Costing Information

SumTrix uses different costing approaches across its ranges:

• Freestyle and Touring skis: batch costing (50 pairs at a time) where raw materials, labour, and overheads are carefully allocated.
• Custom skis: job costing, as each order has bespoke design, raw material mix, and labour hours.
• Accessories: treated as resale products, with margin analysis more relevant than cost build-up.

The pre-seen also highlights standard cost cards (e.g., SummitFlow), allowing analysis of materials, labour, and overhead absorption. Examiners may expect students to apply costing techniques to scenarios involving sustainability inputs (e.g., recycled plastics) or new production processes (e.g., robotics, CAD).

Possible examining scenarios

• Preparing a cost comparison between standard production skis and custom skis to support pricing decisions.
• Advising on whether activity-based costing (ABC) could provide more accurate cost allocation in a sustainability-focused business.
• Assessing the impact on unit costs if SumTrix invests in automation (higher fixed costs, lower variable costs).
• Evaluating whether to use marginal costing or absorption costing when assessing short-term production decisions.
• Reconciling budgeted vs actual costs, highlighting causes of variances in labour efficiency or material usage.

Painting the Future: Budget Preparation and Control 

Budgeting is central at SumTrix due to its seasonal business cycle. Revenue and cash flow are concentrated in November–April, requiring careful planning for off-season months. Budgets are set on an incremental basis, with limited involvement of operational managers — creating risk of slack or unrealistic assumptions.

Forecasts are critical given external uncertainties: climate change (shorter ski seasons), raw material price volatility (bamboo, maple), and exchange rate fluctuations on imports. The pre-seen’s detailed budgets by product line (e.g., gross profit margins of 43% for freestyle, 50% for custom) offer scope for sensitivity analysis.

Possible examining scenarios

• Analysing how a fall in ski season length would impact sales forecasts and budgets.
• Explaining how rolling forecasts could provide more flexibility than traditional incremental budgets.
• Discussing behavioural consequences of top-down budgets, such as demotivation of production staff.
• Preparing a flexed budget to reflect increased raw material costs or production delays.
• Considering zero-based budgeting for accessories to reassess whether they add sufficient value.

Decoding Success: Performance Analysis

Performance must be assessed from both financial and non-financial perspectives:

• Financial: Gross margin (39.7%), profit before tax margin (5.7%), ROCE, and liquidity ratios.
• Operational: Production efficiency, variance analysis, labour utilisation, and equipment downtime.
• Market-driven: Customer satisfaction, social media engagement, brand recognition, and sustainability impact.

Exam questions may require evaluation of Key Performance Indicators (KPIs) tailored to functions (e.g., on-time delivery for Goods Outwards, defect rates for Production). Students should also be prepared to analyse variance reports and interpret their implications for departmental or company-wide performance.

Possible examining scenarios

• Explaining the reasons behind sales price and volume variances across ski ranges.
• Recommending KPIs for the Custom ski department (e.g., order turnaround time, defect rates).
• Preparing a balanced scorecard report for SumTrix, incorporating sustainability measures.
• Comparing SumTrix’s performance ratios to industry benchmarks.
• Evaluating whether heavy marketing expenditure is justified given modest profit margins.

Transparency and Accountability: Financial Reporting, Governance, and Ethics  

SumTrix operates under international accounting standards, meaning reporting accuracy is central to financial decision-making. IFRS ensures comparability and transparency, with particular relevance to:

• IAS 2 (Inventories) — skis held in warehouses must be valued at the lower of cost or net realisable value.
• IAS 16 (PPE) — production equipment depreciated systematically, with capital allowances under Reeland’s 25% reducing balance method for tax purposes.
• IFRS 15 (Revenue Recognition) — careful treatment of sales through retailers (with discounts and promotions) versus website sales (direct-to-consumer).

Governance and ethics are equally important. SumTrix’s board is dominated by its three founders, which brings vision and authenticity but also raises concerns about independence, succession, and accountability. Ethical questions arise in influencer partnerships, environmental marketing claims, and fair treatment of employees in seasonal work cycles.

Possible examining scenarios

• Adjusting financial statements to reflect correct inventory valuation under IAS 2.
• Applying tax depreciation rules to new machinery purchases and calculating the effect on taxable profit.
• Advising management on ethical risks of overstating sustainability achievements.
• Assessing whether the founder-led structure undermines effective governance.
• Explaining the correct revenue recognition treatment for advance orders from retailers.

Navigating the Now: Short-term Decision Making

In a seasonal, fast-moving industry like skiing, short-term decisions can make or break profitability. At SumTrix, these decisions often revolve around pricing, production choices, promotional campaigns, and managing risk under uncertainty.

• Pricing decisions: End-of-line accessories (e.g., last year’s helmets or goggles) may need to be discounted to clear stock before new models arrive. For skis, price reductions may be considered if unsold inventory builds up late in the season.
• Production choices: With skis produced in batches of 50 pairs, SumTrix must decide whether to adjust batch sizes, outsource elements like bindings, or reallocate skilled labour between Freestyle, Touring, and Custom orders.
• Sales promotions: Website sales make up 39% of revenue, often supported by promotional campaigns. Management must weigh the benefits of short-term discounting against the risk of damaging brand image or eroding margins.
• Risk and uncertainty: External factors — climate variability, import price fluctuations for bamboo and maple, or sudden surges in demand from retailers — can force management to make decisions under incomplete information. Techniques such as breakeven analysis, CVP (cost-volume-profit), and decision trees help assess trade-offs.

In real-world ski manufacturing, short-term agility is critical. Larger firms often use dynamic pricing algorithms to adjust ski prices based on demand and weather forecasts — while a niche company like SumTrix may rely more on careful contribution analysis and margin reviews.

Possible examining scenarios

• Special orders: Evaluating whether to accept a one-off bulk order from a retailer at a discounted price, considering contribution and capacity utilisation.
• Promotional campaigns: Assessing the financial impact of a mid-season discount on website sales — balancing increased volume against reduced margin.
• Make-or-buy: Deciding whether to outsource bindings to external suppliers when labour hours are constrained in peak season.
• Breakeven analysis: Calculating breakeven sales volume for a new accessory line (e.g., gloves) and evaluating whether to launch.
• Decision-making under risk: Applying decision-tree or expected value analysis to consider investment in new eco-friendly materials when demand forecasts are uncertain.
• Opportunity cost: Weighing up whether production time should be allocated to high-margin Custom skis versus high-volume Freestyle skis.

Balancing the Books: Working Capital Management

Working capital is the lifeblood of a seasonal business like SumTrix. With sales concentrated in the winter season (November–April), the company faces peaks and troughs in cash inflows, while production continues year-round. Effective working capital management ensures that SumTrix can fund operations, pay suppliers, and maintain liquidity, even in quieter months.

• Receivables: Retail sales account for 61% of revenue, with retailers offered 30–60 day payment terms. This creates a time lag between sales and cash collection. In contrast, online customers (39% of revenue) typically pay upfront, improving liquidity. The mix of sales channels has a direct impact on debtor days.
• Payables: Suppliers offer terms ranging from 30 to 90 days, with some bulk purchase discounts. This flexibility helps smooth cash flows, but reliance on bulk buying can tie up cash in excess inventory.
• Inventory: Skis are manufactured continuously in batches, but sales are seasonal, leading to stock build-up before the ski season. Excess inventory increases storage costs and ties up working capital.
• Cash: Cash reserves (R$290k in 2025) are positive but modest, leaving little room for error in case of unexpected disruptions (e.g., supply chain delays).

In the ski industry, strong working capital management is essential. Global brands often use sophisticated demand forecasting to align production and inventory with sales, while smaller niche players like SumTrix must carefully balance liquidity, customer relationships, and supplier agreements.

Possible examining scenarios

• Liquidity ratios: Analysing current and quick ratios in light of seasonal stock build-up and delayed retailer payments.
• Receivables management: Recommending tighter credit control measures for retailers, or considering invoice factoring to improve cash flow.
• Payables strategy: Evaluating whether to take bulk purchase discounts from suppliers versus preserving cash for off-season liquidity.
• Inventory turnover: Assessing the impact of slow-moving accessories or unsold skis on working capital efficiency.
• Financing options: Advising whether to use short-term borrowing (e.g., overdraft or credit lines) to bridge seasonal cash shortfalls.
• Cash flow forecasting: Preparing a forecast that models the impact of late retailer payments or increased accessory sales.
• Policy trade-offs: Discussing the consequences of adopting a more aggressive working capital policy (tightening receivables and reducing inventory) versus a more relaxed one (supporting retailer relationships with extended credit).

Real-life Applications: Lessons from the Industry

The pre-seen for SumTrix may be fictitious, but the issues it raises are very real. Ski manufacturers, and companies across many industries, face the same financial, operational, and strategic challenges. Understanding these parallels helps students ground their exam answers in practical thinking, making their arguments stronger and more persuasive.

1. Costing in Practice

In manufacturing industries worldwide, the choice of costing system affects how well managers understand product profitability.

• Sports equipment: Companies like Salomon and Rossignol use batch costing for mainstream ski models, while bespoke skis for professional athletes rely on job costing.
• Automotive industry: Car makers apply activity-based costing to trace overheads (e.g., design, robotics, sustainability initiatives) to specific models.
• Application for SumTrix: Just as luxury brands isolate costs for limited-edition cars, SumTrix must manage costs for its Custom skis, ensuring pricing reflects the bespoke effort.

Possible exam connection: You may be asked to prepare a cost card for a new ski model, justify using job vs batch costing, or comment on whether ABC could provide more accurate cost allocation for sustainability costs.

2. Budgeting and Forecasting

Budgeting is not just about numbers — it’s about coping with uncertainty.

• Airlines: Budgeting is highly seasonal (winter vs summer demand), similar to ski equipment. Rolling forecasts help adjust to fuel price fluctuations and passenger demand.
• Retail: Fashion retailers budget for seasonal collections, forecasting both sales and markdowns. Excess stock is a constant risk.
• Application for SumTrix: Like airlines or retailers, SumTrix must anticipate peaks and troughs in demand, flex budgets for material cost increases, and avoid being locked into rigid plans that ignore seasonality.

Possible exam connection: An unseen scenario could test your ability to flex a budget after a poor snowfall season, or to evaluate whether rolling forecasts would better suit SumTrix compared to incremental budgets.

3. Performance Analysis

Performance reporting in modern industries goes beyond financial ratios.

• Technology firms: Monitor KPIs such as user growth, churn rate, and sustainability targets alongside revenue.
• Sportswear brands (e.g., Nike, Adidas): Assess performance using social media engagement, influencer effectiveness, and supply chain speed — not just sales margins.
• Application for SumTrix: Beyond gross margins, performance must be evaluated through delivery times, defect rates, brand awareness, and sustainability metrics — the same non-financial KPIs global firms use to maintain competitiveness.

Possible exam connection: You might be asked to design a KPI report for SumTrix’s retail and website channels, comment on sales or efficiency variances, or assess how sustainability KPIs could be integrated into performance management.

4. Governance, Ethics, and Reporting

Ethical and governance issues are at the centre of public scrutiny.

• Fashion industry: Accusations of “greenwashing” push firms like H&M to back claims with verifiable data.
• Technology companies: Founder-led firms (e.g., Tesla under Elon Musk) raise governance concerns over concentration of decision-making power.
• Sports sponsorships: Influencer-driven campaigns attract regulators’ attention on transparency and truth in advertising.
• Application for SumTrix: Its founder-led board resembles many real companies where visionaries retain control. Ethical risks, overstating sustainability or using influencers irresponsibly, are highly relevant exam angles.

Possible exam connection: An unseen could ask you to identify governance weaknesses in SumTrix’s founder-dominated board, assess ethical risks in influencer campaigns, or apply IFRS/IAS standards to correct inventory or PPE treatment in draft accounts.

5. Short-Term Decision-Making

Short-term agility is essential for survival in competitive markets.

• Consumer electronics: Firms must decide whether to discount old models before launching new ones.
• Airlines: Price seats dynamically to maximise contribution margin, sometimes selling below full cost if it improves overall profitability.
• Food and beverage: Seasonal products (e.g., ice cream) are heavily discounted off-season to free up capacity.
• Application for SumTrix: Whether to discount last season’s goggles, accept a one-off order from a retailer, or outsource bindings mirrors real decisions in these industries. The key is balancing contribution margin with long-term brand value.

Possible exam connection: You may face a task where SumTrix considers a one-off discounted bulk order, whether to outsource bindings, or whether to run a short-term website promotion — requiring CVP, relevant costing, and risk analysis.

6. Working Capital Management

Managing liquidity is critical in industries with seasonal demand or complex supply chains.

• Retail: Large retailers like Walmart and Tesco negotiate long supplier payment terms but demand upfront payment from customers — creating a cash-flow advantage.
• Construction: Projects often involve large cash outflows before inflows, requiring short-term financing.
• Luxury fashion: Brands manage inventory carefully to avoid tying up cash in unsold stock.
• Application for SumTrix: With retailers paying in 30–60 days and suppliers offering 30–90 day terms, managing debtor days, creditor days, and stock levels is just as critical here as it is for global giants.

Possible exam connection: The unseen may ask you to calculate liquidity ratios, evaluate the effect of offering extended credit terms to retailers, or recommend financing options for seasonal cash shortfalls.

7. Broader Industry Themes

• Sustainability: Ski makers like Black Crows and Fischer are experimenting with bamboo, recycled plastics, and bio-resins — echoing SumTrix’s sustainability drive.
• Technology: CAD and 3D printing are used in ski prototyping, just as aerospace and automotive firms use them for efficiency and innovation.
• Globalisation: As skiing grows in Asia and South America, global supply chains face the same risks (currency, logistics, climate impact) as industries like electronics or apparel.

Possible exam connection: You could be asked to evaluate whether SumTrix should invest in new eco-materials, expand into North America, or adopt advanced manufacturing technologies, requiring cost-benefit analysis and alignment with strategy.

Key Takeaways: What Can We Learn from Industry Best Practices

Area	Best Practice	Lesson
Costing must evolve with strategy	Global manufacturers use activity-based costing to capture the true cost of sustainability and design	Costing systems should reflect its premium, sustainability-focused positioning, ensuring pricing is robust for niche and custom products
Flexible budgeting drives resilience	Airlines and retailers use rolling forecasts to adapt quickly to uncertain demand	Incremental budgets may not suffice; adopting more flexible methods could mitigate seasonal volatility and raw material cost swings
Performance is more than profit	Leading sportswear companies track social media engagement, customer satisfaction, and sustainability KPIs alongside financials	Success depends not just on gross margins but also on delivery times, defect rates, and brand reputation
Governance and ethics underpin trust	Firms criticised for greenwashing or poor board independence often face reputational and regulatory backlash	Transparency in sustainability claims, clear governance structures, and ethical influencer marketing are as vital as financial accuracy
Agility in short-term decisions sustains competitiveness	Industries with perishable or seasonal products make rapid pricing and outsourcing decisions to preserve margins	Short-term actions such as discounting, outsourcing, or running promotions must be carefully evaluated for both financial and brand impact
Working capital is a strategic lever	Global retailers secure favourable terms by balancing receivables, payables, and inventory strategically	Managing retailer credit terms, bulk discounts, and seasonal cash flows effectively is essential to survival
Innovation and sustainability drive long-term value	From aerospace to fashion, companies that invest in eco-materials and advanced technologies gain competitive advantage	Strategic investment in CAD, 3D printing, and eco-materials may be costly in the short term but aligns with its sustainability-led brand identity

By grounding your answers in the best practices of real-world industries, you demonstrate the ability to think like a professional Finance Officer. Examiners reward candidates who not only apply numbers but also show awareness of how companies succeed, or fail, when faced with the same issues SumTrix is dealing with.

Conclusion: Bringing it All Together

The SumTrix pre-seen offers a detailed snapshot of a company operating in a competitive, seasonal, and sustainability-driven industry. While the story is fictitious, the challenges are real, mirroring those faced by global manufacturers and retailers today.

Through the “I can” statements, you now know what skills the examiner is looking for: costing, budgeting, performance analysis, governance, short-term decision-making, and working capital management. By linking these competences to the financials and operations of SumTrix and grounding them in real-life industry practices, you gain the tools to think and act like a Finance Officer inside the business.

The unseen exam scenarios will not test memory of the pre-seen; they will test your ability to apply judgement. Every figure, ratio, or strategic choice in the unseen will connect back to the foundation laid in the pre-seen.

Advice for Success

• Think like a professional: Don’t just calculate — interpret. Always ask, “What does this mean for SumTrix’s management?”
• Balance financial and non-financial insights: Examiners want to see you use KPIs, governance, ethics, and industry awareness — not just ratios.
• Stay alert to seasonality: Remember that timing, cash flow, and inventory patterns are central to SumTrix’s operations.
• Apply real-world logic: When presented with a decision, consider how actual companies (sports brands, airlines, retailers) deal with similar issues.
• Communicate clearly: Structure your answers like reports to managers — concise, logical, and decision-focused.
• Use the “I can” statements as your compass: They are the clearest guide to what the examiner will test. When reading the unseen, identify which “I can” areas are being assessed and frame your response accordingly.

Final thought: Success in the case study comes not from memorising the pre-seen, but from bringing together costing, budgets, KPIs, ethics, and strategy into one coherent analysis. Treat SumTrix as if it were your real employer, and answer as a finance professional would, with insight, clarity, and commercial awareness.

Best of luck in your exam, approach it with confidence, and show the examiner that you can think, analyse, and communicate like a true finance professional.