Certified Management Accountant (CMA)

The CMA is a prestigious global certificate awarded by IMA to professionals who demonstrated mastery in financial planning, analysis, control, decision support and strong professional ethics. The certification dates back in 1972, when IMA (formerly known as National Association of Cost Accountants (NACA)), began to provide professional recognition to management accountants that would be comparable to the designation of a Certified Public Accountant (CPA). Having CMA certified professionals is a great help in the business industry as they can improve the efficiency of operation and management and the financial situation of a company.

The IMA is the premier body that awards the certification in management accountancy. This professional body is located in New Jersey and boasts of about 60,000 members all across the world. Its main agenda is to further advance the role of the management accountants in the business world. The body provides the candidate with the necessary qualification, and thus arms the candidate with the sufficient knowledge as well as skills that can be used in the real life business scenario.

• To establish management accounting as a recognized profession by identifying the role of the management accountant and financial manager, the underlying body of knowledge, and course of study by which such know-ledge is acquired.
• To encourage higher educational standards in the management accounting field.
• To establish an objective measure of an individual’s knowledge and competence in the field of management accounting.
• To encourage continued professional development by management accountants.

To be eligible for CMA certification, you must comply with the following requirements;

• Be a member of IMA
• Pay the Entrance Fee
• Satisfy the Education Qualification
• Satisfy the Experience Qualification
• Register for the exam and pass all the examination parts

Professionals who successfully pass the CMA examination and earn the prestigious certificate enjoys the following benefits:

• Salary-A Findings of IMA’s 20th Annual Salary Survey indicate that professionals holding the CMA designation and certification have greater earning power – 24% higher in salary and 31% higher in total compensation – than their noncertified colleagues.

• Competitive Advantage – Businesses around the world rely on CMAs for financial and information management, as well as for the strategic planning and business solutions.

• Personal Satisfaction – Prove your ability to become a strategic business partner, while you also enhance your self-confidence, your sense of accomplishment, and your resume.
• Professional Recognition – The CMA designation indicates a commitment to excellence based on a strong, ethical foundation and dedication to lifelong learning. In addition, the program objectively tests and validates expertise in areas essential to analyzing, managing and evaluating business solutions that contribute to the success of an organization.

Examination Parts

The CMA exam is specifically designed to measure the advanced skills required to be an effective member of finance and accounting teams within organizations and to create value in today’s complex and challenging business environment.

CMA Course Content

A. Planning, Budgeting and Forecasting

• Budgeting concepts
• Forecasting techniques
• Budgeting methodologies
• Annual profit plan and supporting schedules
• Top-level planning and analysis

B. Performance Management

• Cost and variance measures
• Responsibility centers and reporting segments
• Performance measures

C.  Cost Management

• Measurement concepts
• Costing systems
• Overhead costs
• Operational Efficiency
• Business process performance

D. Internal Controls

• Risk assessment, controls, and risk management
• Internal auditing
• Systems controls and security measures

E. Professional Ethics  

• Ethical considerations for management accounting and financial management professionals

A.  Financial Statement Analysis

• Basic Financial Statement Analysis
• Financial Performance Metrics – Financial Ratios
• Profitability analysis
• Analytical Issues in Financial Accounting

B. Corporate Finance

• Risk and return
• Managing financial risk
• Financial instruments
• Cost of capital
• Managing current assets
• Raising capital
• Corporate restructuring
• International finance

C. Decision Analysis and Risk Management

• Cost/volume/profit analysis
• Marginal analysis
• Pricing
• Risk assessment

D. Investment Decisions

• Capital budgeting process
• Discounted cash flow analysis
• Payback and discounted payback
• Ranking investment projects
• Risk analysis in capital investment
• Valuation

E. Professional Ethics  

• Ethical considerations for the organization