CMA Part 1 Syllabus
Content Specification Outlines
Certified Management Accountant (CMA) Examinations
CMA Part 1 – Financial Reporting, Planning, Performance, and Control

External Financial Reporting Decisions (15%)

  1. Financial statements
    • Balance sheet
    • Income statement
    • Statement of changes in equity
    • Statement of cash flows
  2. Recognition, measurement, valuation, and disclosure
    • Asset valuation
    • Valuation of liabilities
    • Equity transactions
    • Revenue recognition
    • Income measurement
    • Major differences between U.S. GAAP and IFRS

Planning, Budgeting, and Forecasting (30%)

  1. Strategic planning
    • Analysis of external and internal factors affecting strategy
    • Long-term mission and goals
    • Alignment of tactics with long-term strategic goals
    • Strategic planning models and analytical techniques
    • Characteristics of successful strategic planning process
  2. Budgeting concepts
    • Operations and performance goals
    • Characteristics of a successful budget process
    • Resource allocation
    • Other budgeting concepts
  3. Forecasting techniques
    • Regression analysis
    • Learning curve analysis
    • Expected value
  4. Budgeting methodologies
    • Annual business plans (master budgets)
    • Project budgeting
    • Activity-based budgeting
    • Zero-based budgeting
    • Continuous (rolling) budgets
    • Flexible budgeting
  5. Annual profit plan and supporting schedules
    • Operational budgets
    • Financial budgets
    • Capital budgets
  6. Top-level planning and analysis
    • Pro forma income
    • Financial statement projections
    • Cash flow projections

Performance Management (20%)

  1. Cost and variance measures
    • Comparison of actual to planned results
    • Use of flexible budgets to analyze performance
    • Management by exception
    • Use of standard cost systems
    • Analysis of variation from standard cost expectations
  2. Responsibility centers and reporting segments
    • Types of responsibility centers
    • Transfer pricing models
    • Reporting of organizational segments
  3. Performance measures
    • Product profitability analysis
    • Business unit profitability analysis
    • Customer profitability analysis
    • Return on investment
    • Residual income
    • Investment base issues
    • Key performance indicators (KPIs)
    • Balanced scorecard

Cost Management (20%)

  1. Measurement concepts
    • Cost behavior and cost objects
    • Actual and normal costs
    • Standard costs
    • Absorption (full) costing
    • Variable (direct) costing
    • Joint and by-product costing
  2. Costing systems
    • Job order costing
    • Process costing
    • Activity-based costing
    • Life-cycle costing
  3. Overhead costs
    • Fixed and variable overhead expenses
    • Plant-wide versus departmental overhead
    • Determination of allocation base
    • Allocation of service department costs
  4. Supply Chain Management
    • Lean manufacturing
    • Enterprise resource planning (ERP)
    • Theory of constraints and throughput costing
    • Capacity management and analysis
  5. Business process improvement
    • Value chain analysis
    • Value-added concepts
    • Process analysis
    • Activity-based management
    • Continuous improvement concepts
    • Best practice analysis
    • Cost of quality analysis
    • Efficient accounting processes

Internal Controls (15%)

  1. Governance, risk, and compliance
    • Internal control structure and management philosophy
    • Internal control policies for safeguarding and assurance
    • Internal control risk
    • Corporate governance
    • External audit requirements
  2. Internal auditing
    • Responsibility and authority of the internal audit function
    • Types of audits conducted by internal auditors
  3. Systems controls and security measures
    • General accounting system controls
    • Application and transaction controls
    • Network controls
    • Backup controls
    • Business continuity planning

CMA Part 1 Syllabus