Preparing for the CMA Exam

successful study habits? What should you do during the time leading up to your test date?

As we get into specific topics, it’s important to let you know beforehand that the entire CMA course is divided into two parts. Part One is based on Financial Planning, Performance, and Analytics. Part Two is all about Strategic Financial Management.

In Part One, I will talk about Financial Planning, Performance, and Analytics. This material is covered in chapters three to eight.

I start with chapter three on External Financial Reporting Decisions. This makes up fifteen percent of Part One of the exam. In this chapter, I will touch upon concepts related to different components of financial statements. They include:

• Balance sheets

• Income statements

• Statements of changes in equity

• Statements of cash flows

• Valuation of different assets and liabilities

• and operating and capital lease.

I will also discuss equity transactions, revenue recognition, revenue measurement, and the difference between US GAAP and IFRS.

In chapter four, I will talk about planning, budgeting, and forecasting. This makes up twenty percent of the Part One syllabus. In this section, I will talk about the strategic planning process, budgeting concepts, annual profit plans, and supporting schedules.

I will explain different types of budgeting, including activity based budgeting, project budgeting, and flexible budgeting. In this chapter, I also address concepts like strategic planning and analysis and forecasting techniques like regression analysis and learning curve analysis.

Chapter five is all about Performance Management. I will talk extensively on control and performance analysis, variance analyses, responsibility accounting, key performance indicators, and balanced scorecard. You will also learn about responsibility centers.

Chapter six covers Cost Management. This chapter addresses basic cost accounting concepts and terminology, cost measurement concepts, and cost accumulation systems: For example, job order costing, process costing, and activity based costing. I will also explain other concepts such as overhead cost allocation, supply chain management, and some other business process performance topics.

From Cost Management, we go to Internal Controls in chapter seven. Here, I touch on Corporate Governance, Internal Control Risk, Internal Control Environment, and Responsibility and Authority for Internal Auditing. I also explain types of audits and assessing the adequacy of the accounting information system controls. You will hear a section on newer exam content about Technology and Analytics as well.

As we bring Part One to a close, chapter eight is all about Financial Statement Analysis and Corporate Finance. You will now be hearing about Part Two content of the exam.

Chapter nine brings us to Decision Analysis and an Introduction to Risk Management. You'll learn the definition of risk and hear about the different kinds of risk.

Chapter ten is about Investment Decisions. From there, I will transition into Professional Ethics. This particular chapter is the last of the actual content chapters.

Chapter eleven closes out your course. The course will close out with a summary of the steps you need to follow once you pass the actual CMA certification exam. Now that you have received your exam results, what happens next on your road to becoming a Certified Management Accountant? And, of course, there is your final exam. Use this practice test of one hundred questions to put together everything you've learned. Find out how your timing is. Learn about areas where you'll need to place more focus and study time.

I hope you heard that we have quite a lot to cover. I encourage you to move at a pace that is comfortable to you. Try to listen as often as you can. Practice retaking written portions of the quizzes, especially if you get any questions wrong. Recall that the

primary purpose of your taking this course is to put yourself in the best position to confidently take the Certified Management Accountant certification exam. The more familiar you are with the material, the more prepared you will be. In addition, the more information you retain about the non content requirements for the test, the more prepared and confident you will be.

KEY TAKEAWAYS

I know this lecture has been introductory. That does not mean that there are no takeaways for me to go through. Some key points for you to note are as follows:

1. Whatever your reason for taking this course, you have chosen a potentially rewarding career path for yourself.

2. CMA certification is an advanced level credential that is globally recognized.

Therefore, it’s suitable for both accountants and financial professionals in different lines of business.

3. You should expect a comprehensive set of tests for certification.

4. To become a CMA professional, you must pass a two part exam.

5. Part One of the course is based on Financial Planning, Performance, and

Analytics. Part Two is all about Strategic Financial Management.

6. Expect short quizzes near the end of each chapter. They are there to help you understand and retain the information provided in the lectures.

7. Make use of the Follow Along PDF Manual. It will help you to grasp the information better.

8. Items and concepts that I frequently repeat during the lectures are of great importance: remember them. I repeat them for emphasis, and to help you retain them.

9. You need to complete all necessary requirements to receive authorization to use your CMA exam marks. It's not just about passing the exam.

10. Make an effort to listen to the course at least a couple of times.

I do hope that all of the information I’ve dished out so far has excited you and motivated you to get started. If you are ready to begin this journey with me, be sure to have your Follow Along PDF Manual close at hand. Have some writing material available as well. Get comfortable, and let’s get right to the work that we have before us!