CMA Part 1 case studies
CMA Part 1 · Put your knowledge to work in context.
The CMA (Certified Management Accountant) is a professional credential issued by the Institute of Management Accountants (IMA), which describes it as "the globally recognized standard in management accounting - and a proven path to bigger roles and better opportunities." IMA positions its credentials as signalling more than technical skill: that a holder "think[s] strategically, make[s] sound decisions, and understand[s] the bigger business picture." The credential is therefore aimed at accounting and finance professionals who want to move beyond historical reporting into planning, analysis, cost control, and strategic decision support. This page covers CMA Part 1, one component of the CMA exam. The CMA Part 1 case studies are 5 cases and about 4,216 words.
1Brenner Industrial: Allocating a Discounted Multi-Element Contract
On 1 January, Year 1, Brenner Industrial Contracts (BIC) signs one contract with a customer combining equipment ( 480,000), installation ( 60,000) and three years of maintenance ( 90,000) - a stated price of 630,000, billed in three equal annual installments. BIC's standalone selling prices are: equipment 500,000; installation 50,000 (routine work that any qualified third party can perform and that does not alter the equipment); maintenance 100,000 over three years.
726 words, about 4 min2Halcyon Components: Inventory Policy, a Wage Step, and a Padded Budget
Halcyon Components budgets quarterly. Sales forecast: Q1 24,000 units, Q2 30,000, Q3 36,000.
807 words, about 4 min3Arden and Boyd: Setting a Transfer Price When Capacity Is Only Partly Idle
Arden Division makes a component: variable cost 38 per unit, fixed cost 14 per unit at its 40,000-unit practical capacity ( 560,000 total fixed). Arden currently sells 36,000 units a year to outside customers at 70.
736 words, about 4 min4Molvar: Activity-Based Costing Reveals a Cross-Subsidy - and a Bad Drop Decision
Molvar makes two products. Total manufacturing overhead is 1,200,000, currently applied on machine hours: Standard uses 120,000 hours (60,000 units × 2 hours), Custom uses 60,000 hours (10,000 units × 6 hours).
862 words, about 4 min5Ridgeway Distributors: A Controller With Too Much Access
Ridgeway Distributors has 42 employees and 28 million of revenue. The controller, a 20-year employee, reconciles all bank accounts, maintains the vendor master file, posts journal entries, and approves payments up to 50,000; the AP clerk reports to her.
1,085 words, about 5 min