CMA Part 1 study guide
CMA Part 1 · Work through your exam, one topic at a time.
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 study guide has 6 sections and about 2,158 words.
01External Financial Reporting Decisions
Know the four core statements (income, balance sheet, cash flows, statement of changes in equity) plus comprehensive income, and be able to move an item from one statement to another. Master the five-step revenue model (identify contract, identify performance obligations, determine transaction price, allocate, recognize as obligations are satisfied).
378 words, about 2 min02Planning, Budgeting and Forecasting
Strategy drives long-range plans, which drive the master budget. The master budget has operating budgets (sales, production, direct materials, direct labor, overhead, ending finished goods, cost of goods sold, selling and administrative) and financial budgets (capital expenditures, cash, budgeted income statement, budgeted balance sheet).
370 words, about 2 min03Performance Management
Responsibility centers are cost, revenue, profit, and investment centers; each should be evaluated only on controllable items. Direct materials price variance = actual quantity purchased x (actual price - standard price).
354 words, about 2 min04Cost Management
Job-order costing accumulates costs by job; process costing averages costs over equivalent units, using either weighted-average or FIFO. Overhead is applied with a predetermined rate (estimated overhead / estimated base); the difference is under- or overapplied overhead, closed to cost of goods sold if immaterial.
342 words, about 2 min05Internal Controls
COSO Internal Control has five components: control environment, risk assessment, control activities, information and communication, and monitoring activities, supported by 17 principles. COSO ERM is broader - it adds strategy and objective-setting and covers governance and culture, strategy, performance, review and revision, and information/communication/reporting.
340 words, about 2 min06Technology and Analytics
An ERP integrates all functions on a single database, eliminating redundant data entry but creating implementation, cost, and change-management risk. Know the distinction between a data warehouse (central, structured, subject-oriented), a data mart (subset for one function), and a data lake (raw, unstructured data).
374 words, about 2 min