The CMA credential is...

CMA Exam Overview

CMA Eligibility:

Focused:- On the critical skills you use in business.

Respected:- Leading employers seek to hire and promote CMAs.

Valued:- CMAs earn higher compensation than non certified professionals.

Convenient:- CMA Exams are offered electronically in hundreds of locations worldwide.

Part 1 - Financial Planning, Performance and Control (4 hours – 100 questions and 2 essay questions)

Part 2 - Financial Decision Making (4 hours – 100 questions and 2 essay questions)

To participate in the CMA program, candidates must be members ofIMA. To earn the CMA designation, candidates must pass both exam parts and fulfill the following education and experience requirements:

Bachelor’s degree from an accredited college or university.Two continuous years of professional experience in management accounting or financial management.

ACCA

CPA

CIMA

CFA

CIA

CCFM

We have..

Exam Centre in UAE: AMIDEAST (Computer based Test)

Exam dates: January and February May and June September and October

CMA Exam Overview

Part 1 Financial Planning, Performance and Control(4 hours – 100 questions and 2 essay questions)

Planning, Budgeting and Forecasting 30% Level CPerformance Management 25% Level CCost Management 25% Level CInternal Controls 15% Level CProfessional Ethics 5% Level C

Part 2 Financial Decision Making(4 hours – 100 questions and 2 essay questions)

Financial Statement Analysis 25% Level CCorporate Finance 25% Level CDecision Analysis and Risk Management 25% Level CInvestment Decisions 20% Level CProfessional Ethics 5% Level C

FAQs

Do I have to take the exam parts in order?No, you can take the exam parts in any order.

Can I take both of the exam parts the same day?Yes, the new two-part testing format offers candidates the option of sitting forboth parts on the same day. This is an efficient way to earn your CMA certifi-cationif you are sufficiently prepared for both exams and the testing center has availabletesting appointments.

How many questions will be on each exam and how much time will I have?On each part of the exam, there will be 100 multiple-choice questions and two 30-minute essay questions. The essays are worth 25% of the total exam score, andthe multiple-choice section is worth 75%. You will have 3 hours to complete themultiple-choice section and one hour to complete both essays. The essays will bepresented after you have completed the multiple-choice section of the exam orafter 3 hours, whichever comes first. Once you complete the multiple choicesection, you cannot go back. You must stay in the essay section to com-plete the exam.

Note: You MUST score at least a 50% on the multiple-choice section of the ex-amto be allowed to take the essay section. This requirement ensures that test takersdo not proceed with the essay section if they do not have a chance of achieving apassing score for the entire exam. If you are allowed to proceed, it does notmean that you passed. You still must perform well enough on the es-say section ofthe exam to achieve a total passing score. Although the passing standard differsaccording to the relative difficulty of the exam form, you should try to score over75% in both the multiple choice and essay sections.

What material will the essays cover?The essays can cover any topic within the specific part. An essay in Part 1, forex-ample, can cover any of the topics in Part 1, but not topics in Part 2.

Will the exams be offered during specific testing windows?Yes, both Parts 1 and 2 will be given during the following three testing windowp-eriods:- January and February- May and June- September and October

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The first testing window for the new program will be May/June 2010. The ex-amswill continue to be administered by computer at Prometric testing cent-ers. If acandidate registers to test during a specific window and fails to take the exam,the candidate must register again and pay the full registration fee.

Will I receive an immediate Pass/Fail score?No. Immediate results will not be provided because the essay questions will begraded off line. The scores for the multiple-choice section will be added to thescores of the essay section for a total weighted score of pass/fail re-flected in ascaled score for the entire part. Candidates are not required to “pass” bothsections; the total score determines pass/fail status. The scores will be mailedapproximately 6 weeks after the end of the month in which you took the test.Please allow up to 8 weeks for results for the May-June 2010 testing window.

Will I receive feedback on my score?Yes. ICMA will continue to provide a performance report for the multiple choicesection of the exam for those who did not pass the exam.

Can I take an exam part more than one time during a testing window?No. Exam scores will not be available until after the testing window closes.

Will there still be opportunities to waive examination parts?No. Waivers/exemptions from exam parts will not be permitted.

What does it mean that all topics will be tested at a Level C?All topics in both parts will be tested up to Level “C” competence. Level Cquestions test a candidate’s ability to synthesize information, evaluate a situationand make recommendations. Levels A (knowledge and compre-hension) and B(application and analysis) will still be tested, but an appropri-ate percentage ofLevel C questions for all major topics will be presented as well.

Does the CMA exam assume a certain level of accounting and business knowledge?Yes, assumed knowledge includes economics, basic statistics, and finan-cialaccounting. Prior courses in accounting and finance are highly recom-mended.Examples of how this assumed knowledge might be tested in the exam include: 1)the candidate would need to know how to calculate marginal revenue and costs,as well as understand the relevance of market structures when determining prices;2) the candidate would have to know

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how to calculate variance when managingfinancial risk; and 3) the candi-date would be asked to construct a Cash FlowStatement as part of an analysis of transactions and assess their impact on theFinancial Statements.

How long will I have to complete the new CMA program?Candidates must complete the new CMA program within three years from the dateof entry into the program. Candidates also must register for an exam part withinthe first 12 months of entering the program. If you do not register for an exampart within the first 12 months or complete the program within three years, youwill have to repay the entrance fee. If you do not successfully com-plete bothparts within three years of entering the certification program, the passed part willexpire.

How will the essay questions be delivered and what kind of software will beused for the responses?The written-response questions will be delivered by computer at Prometric TestingCenters in the same manner as the multiple-choice questions. For es-say questionsthat require a purely written answer, you will have a text box in which to typeyour response. For some of the problems that require quanti-tative responses, weare planning to include a spreadsheet tool in which to present your calculations.

How will the essay questions be graded?The written-response essay questions will be graded by subject matter experts.The questions will not be graded online and, therefore, you will not immedi-atelyreceive your grades.

Will partial credit be given?The graders do give partial credit. For example, if you are asked to give threereasons why a selected alternative action is beneficial for a business and youprovide only two correct reasons, you will receive partial credit for these tworesponses. Likewise, for questions requiring a calculated response, partial creditwill be given for a correct formula even though a mathematical error may havebeen made in the final number.

Are candidates penalized for mistakes in grammar and spelling?Points will not be deducted for poor writing skills; however, your answer must beclear enough for the grader to understand the intent of your response. If theresponse cannot be understood or is contradicted later in your answer, credit willnot be given.

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A. Planning, Budgeting and Forecasting (30% - Levels A, B, and C)

Part 1 - Financial Planning, Performance and Control

Budgeting concepts Operations and performance goals Characteristics of a successful budget process Resource allocation Other budgeting concepts

Forecasting techniques Regression analysis Learning curve analysis Exponential smoothing Time series analysis Expected value

Budgeting methodologies Annual business plans (master budgets) Project budgeting Activity-based budgeting Zero-based budgeting Continuous (rolling) budgets Flexible budgeting

Annual profit plan and supporting schedules Operational budgets Financial budgets Capital budgets

Top-level planning and analysis Pro forma income Financial statement projections Cash flow projections

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

Responsibility centers and reporting segments Types of responsibility centers Transfer pricing models Reporting of organizational segments

Performance measures Product profitability analysis Business unit profitability analysis Customer profitability analysis Return on investment Residual income Investment base issues Effect of international operations Critical success factors Balanced scorecard

B.Performance Management(25% - Levels A, B, and C)

C. Cost Management (25% - Levels A, B, and C)

Measurement concepts Cost behavior and cost objects Actual and normal costs Standard costs Absorption (full) costing Variable (direct) costing Joint and by-product costing

Costing systems Job order costing Process costing Activity-based costing Life-cycle costing

Overhead costs Fixed and variable overhead expenses Plant-wide versus departmental overhead Determination of allocation base Allocation of service department costs Operational Efficiency Just-in time manufacturing Material requirements planning (MRP) Theory of constraints and throughput costing Capacity management and analysis

Business process performance Value chain analysis Value-added concepts Process analysis Benchmarking Activity-based management Continuous improvement concepts Best practice analysis Cost of quality analysis

D. Internal Controls (15% - Levels A, B, and C)

E. Professional Ethics (5% - Levels A, B, and C)

Risk assessment, controls, and risk management Internal control structure and management philosophy Internal control policies for safeguarding and assurance Internal control risk Implications of the Sarbanes-Oxley Act of 2002 U.S. Foreign Corrupt Practices Act internal control requirements COSO Internal Control Framework

Internal auditing Responsibility and authority of the internal audit function Types of audits conducted by internal auditors

Systems controls and security measures General accounting system controls Application and transaction controls Network controls Flowcharting to assess controls Backup controls Disaster recovery procedures

Ethical considerations for management accounting and financial management professionals Provisions of IMA’s “Statement of Ethical Professional Practice” Evaluation and resolution of ethical issues such as: Fraudulent reporting Manipulation of analyses and results Unethical behavior in developing budgets and standards Manipulation of decision factors

A. Financial Statement Analysis (25% - Levels A, B, and C)

Part 2- Financial Decision Making

Basic Financial Statement Analysis Common size financial statements Common base year financial statements Growth analysis Purposes and components of financial statements

Financial Performance Metrics – Financial Ratios Liquidity Leverage Activity Profitability Market

Profitability analysis DuPont analysis Income measurement analysis Revenue analysis Cost of sales analysis Expense analysis Variation analysis

Analytical Issues in Financial Accounting Impact of foreign operations Effects of changing prices and inflation Off-balance sheet financing Cash Flow Statement reconciliation to Income Statement Impact of changes in accounting treatment International Financial Reporting Standards (IFRS) Fair value accounting Differences in accounting and economic concepts of value and income Earnings quality

B. Corporate Finance (25% - Levels A, B, and C) Risk and return Calculating return Types of risk Relationship between risk and return Risk and return in a portfolio context Diversification Asset pricing models

Managing financial risk Portfolio management Hedging Financial risk management

Financial instruments Term structure of interest rates Bonds Debt management Common stock Preferred stock Options and other derivatives Valuation of financial instruments

Cost of capital Weighted average cost of capital Cost of individual capital components Calculating the cost of capital Marginal cost of capital

Managing current assets Working capital terminology Cash management Marketable securities management Accounts receivable management Inventory management Types of short-term credit Minimizing the cost of short-term credit Raising capital Financial markets and regulation Market efficiency Financial institutions Initial public offerings Secondary offerings Dividend policy and share repurchases Private placements Lease financing

Corporate restructuring Mergers and acquisitions Divestitures Bankruptcy

International finance Fixed, flexible and floating exchange rates Managing transaction exposure Financing international trade Transfer pricing tax implications Political risk

Cost/volume/profit analysis Breakeven analysis Profit performance and alternative operating levels Analysis of multiple products

Marginal analysis Sunk costs, opportunity costs and other related concepts Marginal costs and marginal revenue Special orders and pricing Make versus buy Sell or process further Add or drop a segment Capacity considerations

Pricing Market comparables Setting prices Target costing Elasticity Product life cycle considerations Market structure considerations

Risk assessment Risk identification and exposure Definition and scope of operational risk, hazard risk, financial risk and strategic risk Risk mitigation strategies Enterprise Risk Management

C. Decision Analysis and Risk Management (25% - Levels A, B, and C)

Capital budgeting process Stages of capital budgeting Incremental cash flows Income tax considerations

Discounted cash flow analysis Net present value Internal rate of return Comparison of NPV and IRR

Payback and discounted payback Uses of payback method Limitations of payback method Discounted payback

Ranking investment projects Ranking methods Capital rationing Mutually exclusive projects

Risk analysis in capital investment Sensitivity analysis Certainty equivalents Real options

Valuation Discounted cash flow models Multiples models Valuation for acquisitions and divestitures Discount rates

D. Investment Decisions (20% - Levels A, B, and C)

E. Professional Ethics (5% - Levels A, B, and C)

Ethical considerations for the organization Anti-bribery provisions of the U.S. Foreign Corrupt Practices Act Provisions of IMA’s Statement on Management Accounting, “Values and Ethics: From Inception to Practice” Corporate responsibility for ethical conduct

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