The CMA exam has 2 parts covering 12 competencies.
Part 1 is called Financial Planning, Performance, and Analytics. It focuses a lot on topics from managerial accounting. You’ll need to know budgeting, forecasting, variance analysis, KPIs, absorption costing versus variable costing, and how to allocate manufacturing overhead. You’ll also need to know the various cost systems: job-order costing, process costing, and activity-based costing
Part 1 also covers fundamental concepts from financial accounting, like the financial statements and revenue recognition.
Finally, Part 1 covers topics related to accounting information systems, corporate governance, and internal controls.
Part 2 is called Strategic Financial Management. It focuses a lot on topics from corporate finance and financial statement analysis.
You’ll need to know about risk and return, the cost of capital, and capital budgeting (NPV/IRR/Payback Method).
You’ll also need to know about valuation, M&A, and financial ratios.
But Part 2 also has some topics from managerial accounting, such as breakeven analysis, target costing, and decisions like the “make or buy” and “sell or process further” decision.
Finally, Part 2 covers risk management and ethics.
If you’re a college student, you’ll definitely want to review your notes from financial and managerial accounting before taking Part 1, and you’ll want to review your notes from corporate finance before taking Part 2.
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