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The CMA exam: how well does it align with typical undergraduate and graduate business programs?

In this curriculum mapping presentation, the authors show how undergraduate students in accounting and finance degree programs and graduate students in Master of Accountancy and Master of Business Administration programs can align their courses with the content on the CMA exam. This way the students will be better prepared to sit for the exam.

Effective May 1, 2010, IMA[R] (Institute of Management Accountants) revised the structure of the CMA[R] (Certified Management Accountant) program, which increased the overall rigor of the program and the relevance of the CMA for accountants and financial professionals in business, over the years there have been many discussions about how colleges and universities can structure their curricula to help students prepare for the exam and the business world. Here we present curriculum mappings that illustrate the alignment between content areas tested on the CMA exam and the content areas included in typical:

* Undergraduate accounting degree programs,

* Undergraduate finance degree programs,

* Master of Accountancy (MAcc) degree programs, and

* Master of Business Administration (MBA) degree programs.

Our curriculum mappings will help educators (professors, department heads, and deans) understand and recommend the CMA program to undergraduate and graduate business students. They also provide undergraduate students in accounting or finance degree programs and graduate students in MAcc or MBA programs with the information they need to prepare for the CMA exam. Because students can take the CMA exam prior to earning their bachelor's degree, we provide a guide for helping them plan their coursework, including the selection of electives, to improve and streamline their preparation for the CMA examination and increase their chances for success.

Background

The CMA is a highly respected and the most appropriate professional credential for accounting and finance professionals working in business. As part of its ongoing goal to ensure that the CMA is the most relevant professional designation for finance and accounting professionals working within organizations, the ICMA[R] (Institute of Certified Management Accountants) took a greenfield approach to validate and further understand the knowledge, skills, and abilities required by today's management accounting professionals. As a result of this approach, which included consideration of primary and secondary research on the competencies that global CFos and controllers deemed critical for organizational success, ICMA redesigned the CMA exam as a two-part exam:

Part 1--Financial Planning, Performance and Control

Format: four hours of exam time, 100 multiple choice questions, and two 30-minute essay questions

Recommended preparation time: approximately 100-150 hours

Content:

Planning, Budgeting, and Forecasting

Performance Management

Cost Management

Internal Controls

Professional Ethics

Part 2--Financial Decision Making

Format: four hours of exam time, 100 multiple choice questions, and two 30-minute essay questions

Recommended preparation time: approximately 100-150 hours

Content:

Financial Statement Analysis

Corporate Finance

Decision Analysis and Risk Management

Investment Decisions

Professional Ethics

How can students best design their educational programs to successfully prepare for and pass the exam? This article answers that question. We first examine undergraduate programs in finance and accounting and then consider graduate accounting and MBA programs.

Undergraduate Programs

Curricular Content

As a first step in determining how to best design an undergraduate program to meet students' preparation needs for the CMA exam, we examined the curriculum of selected programs at a variety of institutions, including public and private as well as large and small schools. To help us develop our recommendations, we consulted with an external panel of accounting and finance professors representing a wide range of educational programs.

In Table 1, we present the outcome of our analysis for undergraduate programs, which shows the content of "typical" undergraduate accounting and finance programs specifically relevant to the CMA exam. Generic descriptions of the courses listed in that table are included in Appendix 1. In that appendix, topics covered within a course that are tested on the CMA exam are listed in bold type.

Curriculum Mapping

To what extent do the courses included in these programs cover the content of the new CMA exam? To answer this question, we looked at the content specification outlines of the areas tested on the CMA exam and examined where and to what extent these areas are covered in the typical structure of the two undergraduate and two graduate business programs selected.

Our evaluation was based on a review of online syllabi, our own experiences, and those of our review panel. For the undergraduate programs, the output of this analysis resulted in the curriculum mappings presented in Tables 2 and 3.

Each table lists the topic areas covered by the CMA exam and indicates the extent to which each program covers those topics. The degrees of coverage are heavy, moderate, limited, slight, and no coverage of the content areas tested on the new CMA examination. A course legend describing course abbreviations is provided in Table 1. For the undergraduate programs, courses are identified as either required or elective under their respective degree programs.

As indicated in Table 2a, all topic areas included in the first part of the CMA exam are usually covered, at least to a moderate degree, in the typical undergraduate accounting program with an appropriate selection of electives. This would require taking elective courses in Cost Accounting and in Accounting Information Systems if they are not in the core accounting curriculum.

The situation is slightly different for the second part of the CMA exam. Table 2b indicates there are clear gaps in the typical accounting undergraduate curriculum and the moderate degree of knowledge needed in the areas covered by the exam. In particular, the areas of international finance, pricing, and tax implications for operational and for investment decisions have only limited or slight coverage in most accounting degree programs, and financial investments likely has no coverage. The addition of a course in Investments (see Table 3b) addresses most of these deficiencies.

Based on our evaluation and the typical content of undergraduate courses, a program that includes the coursework shown in Table 4 would prepare undergraduate accounting majors for the CMA exam.

Suggested Program of Study--Accounting Undergraduate Program

Students typically take Financial Accounting, Managerial Accounting, and Microeconomics in the sophomore year of an undergraduate accounting program. Based on the course recommendations in Table 4, the course sequence in Table 5 enables students to efficiently integrate taking the CMA exam with their course of study starting in their junior year.

Undergraduate Finance Program

To what extent does the typical undergraduate finance curriculum prepare students for the CMA exam? A review of the content of the required courses included in the typical finance undergraduate curriculum (see Table 3) shows that the curriculum is likely to include solid coverage of the content of Part 2 of the exam, but it is not as strong on Part 1. Appropriate electives can address most of the deficiencies. These elective courses include (if not already included as required courses) Intermediate Accounting and Accounting Information Systems. To the extent there is room for an additional elective, a course in Cost Accounting/Advanced Managerial Accounting is also desirable.

Based on our evaluation and the typical content of undergraduate courses, a program containing the coursework shown in Table 6 would prepare undergraduate finance majors for the CMA exam.

The suggested program of study for finance majors should parallel the program for accounting majors, with the accounting courses filling elective slots and international finance and investments counting as required courses for the typical finance major.

Graduate Programs

Curricular Content

In a manner similar to our analysis of undergraduate programs, we examined the courses contained in typical MAcc and MBA programs. The results are shown in Table 7, which lists the "typical" content of these programs. Generic descriptions of the courses listed in Table 7 are included in Appendix 2. Topics covered within a course that are tested on the CMA exam are listed in bold type in the appendix.

Program content can vary widely, particularly at the graduate level, but we have provided what we believe are the courses most commonly included in these programs. We also note that a great deal of variance in course titles exists.

Curricular Mapping

To what extent do the courses included in these programs cover the content of the new CMA exam? To answer this question, we again look at the major content areas tested on the CMA exam and where and to what extent they are covered in the typical structure of MBA and graduate accounting programs. For these programs, the result of this analysis is the curriculum mappings presented in Tables 8 and 9.

These tables list the areas covered by the CMA exam and indicate the extent to which each program covers those topics. As in the tables for the undergraduate programs, the degrees of coverage range as follows: heavy, moderate, limited, slight, or no coverage of the content areas tested on the new CMA exam.

A course legend is provided in Table 7 for the course abbreviations used. For these two graduate programs, courses are listed as required, elective, or prerequisite (foundational) to their respective degree programs.

Master of Accountancy Program

Master of Accountancy programs tend to be more diverse than the other programs considered, and putting together a program that prepares students in MAcc programs for the CMA exam can be more challenging. Courses in Cost Accounting, Accounting Information Systems, and Corporate Finance are key to adequate preparation. A course in Management Control Systems is also desirable.

Based on our evaluation and the typical content of graduate courses, a program where the coursework shown in Table 10 is selected would prepare MAcc program students for the CMA exam.

Master of Business Administration Program

MBA programs tend to be more homogenous than MAcc programs, and they generally cover a body of knowledge that is very compatible with the CMA exam. As noted in Table 9, most of the CMA topics are covered at least to a moderate extent in the typical MBA program. Again, selection of appropriate electives is important for adequate exam preparation. Courses in Management Control Systems, Accounting Information Systems, and Investments are important components of these programs, and a course in Auditing is also desirable.

Based on our evaluation and the typical content of graduate courses, a program where the coursework shown in Table 11 is selected would prepare MBA students for the CMA exam.

Making the Right Selection

The new CMA exam covers the topics necessary for accounting and financial professionals working in organizations to succeed in their careers. Based on the information presented in this article, it can be seen that many accounting and finance students--either through their regular curriculum or through a judicious selection of electives--can take programs of study that prepare them to sit for and pass the CMA exam.
Appendix 1: Typical Undergraduate Course Descriptions

Course                 Course Description     Typical Course
                                              Content (Topics
                                              covered on CMA exam
                                              listed in bold)

ADV--Advanced          Advanced topics in     * Financial
Accounting             financial reporting    statement purpose,
                       and accounting for     interpretation, and
                       international          limitation#
                       operations, multi-
                       corporate business     * Fair value
                       entities, not-for-     accounting#
                       profit and other
                       government             * IFRS vs. U.S. GAAP
                       organizations.         and other
                                              international
                                              issues#

                                              * Mergers and
                                              acquisitions#

                                              * Not-for-profit and
                                              governmental
                                              accounting

AIS--Accounting        Provides a thorough    * Internal control
Information Systems    understanding of the   risk assessment#
                       information systems
                       that support the       * AIS controls#
                       accounting function.
                                              * COBIT

                                              * COSO Internal
                                              Control Framework#

                                              * Enterprise risk
                                              management#

                                              * IT governance

                                              * Business processes

                                              * Systems
                                              development life
                                              cycle

AUD--Auditing          An in-depth study of   * Risk assessment
                       audit, attestation,    (the entity, its
                       and other assurance    environment, and
                       services provided by   internal control)#
                       independent
                       auditors. The focus    * Materiality and
                       is on publicly         risk (types and
                       traded companies,      measures)
                       financial statement
                       audits, and audits     * Types of audits
                       of internal controls   and reports#
                       over financial
                       reporting.             * AIS controls#

                                              * COSO Internal
                                              Control Framework#

                                              * Evidence type and
                                              quality

                                              * Audit,
                                              attestation, and
                                              quality control
                                              standards

                                              * Professional
                                              ethics and legal
                                              liability#

                                              * Management
                                              assertions and audit
                                              evidence

BE--Business Ethics    Introduces ethics-     * Management
                       related aspects to     accountant
                       the business           professional ethics#
                       decision-making
                       process. Emphasizes    * Organizational
                       the consistent         ethics#
                       recognition and
                       application of         * Decision-making
                       ethical principles     strategy#
                       throughout the
                       corporate decision-
                       making process.

CA--Cost/Advanced      An intermediate        * Budgeting and
Managerial             course covering the    planning (master
Accounting             managerial use of      budget)#
                       accounting data to
                       assist managers in     * Control and
                       their plans and        performance
                       decisions regarding    evaluation#
                       resource allocation,
                       organizational         * Cost concepts and
                       control, and           systems#
                       performance
                       evaluation.            * Overhead
                                              allocation#

                                              * Activity-based
                                              costing#

                                              * Standard costs and
                                              variance analysis#

                                              * Responsibility
                                              accounting#

                                              * Balanced
                                              scorecard#

                                              * Cost-volume-profit
                                              analysis#

                                              * Marginal analysis
                                              (e.g., relevant
                                              costs)#

                                              * Make vs. buy
                                              decisions#

                                              * Pricing decisions
                                              and cost management#

CF--Corporate          Introduces the         * Risk and return#
Finance                theory, methods, and
                       concerns of            * Portfolio
                       corporate finance.     management

                                              * Financial
                                              instruments#

                                              * Cost of capital#

                                              * Capital
                                              structuring#

                                              * Raising capital
                                              and capital
                                              budgeting#

                                              * Discounted cash
                                              flow concepts (NPV,
                                              IRR)#

                                              * Nondiscounted
                                              analysis#

                                              * Ranking investment
                                              projects#

FA--Financial          A fundamentals         * Types of business
Accounting             course introducing     organization
                       the basic financial
                       accounting             * Financial
                       principles and         statement type,
                       concepts used to       purpose,
                       prepare financial      preparation, and
                       statements for a       analysis#
                       business enterprise.
                                              * The accounting
                                              cycle

                                              * Analyzing and
                                              recording business
                                              transactions

                                              * Revenue, expense,
                                              asset, and liability
                                              concepts

                                              * Merchandising
                                              operations and
                                              inventory

                                              * Historical cost
                                              vs. fair value
                                              accounting#

                                              * Working capital
                                              concepts#

                                              * Earnings quality#

                                              * Cash flow
                                              statement
                                              preparation and
                                              analysis#

INT--Intermediate      An intermediate        * Financial
Accounting             financial accounting   statement purpose,
                       course with in-        preparation, and
                       depth focus on         analysis#
                       asset, liability,
                       and owners' equity     * Financial
                       measurement; revenue   statement
                       determination,         limitations#
                       timing, and
                       recognition; and       * Asset, liability,
                       financial statement    and equity account
                       preparation,           analysis#
                       presentation, and
                       analysis.              * Fair value
                                              accounting#

                                              * IFRS vs. U.S. GAAP
                                              and other
                                              international
                                              issues#

                                              * Cash flow
                                              statement
                                              preparation and
                                              analysis#

                                              * Ratio analysis#

                                              * Earnings quality#

                                              * Valuation methods#

                                              * Financial
                                              instruments#

                                              * Dividend policy#

                                              * Pensions and post-
                                              retirement benefits

                                              * Capital leases#

                                              * Revenue
                                              recognition and
                                              measurement#

INV--Investments       A survey course that   * Market
                       analyzes, measures,    participation
                       and values stock,
                       bond, and other        * Efficient markets
                       investment products.
                                              * Financial
                                              instruments: fixed
                                              income and equity#

                                              * Financial markets:
                                              fixed income and
                                              equity

                                              * Derivatives#

                                              * Futures and
                                              options#

                                              * Mutual funds

                                              * Financial
                                              investment
                                              valuation#

                                              * Portfolio
                                              management

                                              * International
                                              investments and
                                              markets

                                              * Risk analysis in
                                              capital budgeting#

                                              * Risk assessment#

                                              * Valuation methods#

MA--Managerial         A fundamentals         * Cost concepts,
Accounting             course designed to     terminology, and
                       develop managerial     measurement#
                       decision-making
                       skills to plan,        * Budgeting,
                       control, and measure   planning, and
                       production costs.      controlling costs#

                                              * Activity-based and
                                              other cost
                                              management concepts#

                                              * Performance
                                              evaluation and
                                              balanced scorecard#

                                              * Cost allocation

                                              * Standard costs and
                                              variance analysis#

                                              * Cost-volume-profit
                                              analysis#

                                              * Marginal analysis
                                              (relevant costing)#

                                              * Discounted cash
                                              flow concepts#

                                              * Capital budget
                                              tools (NPV, IRR)#

                                              * Nondiscounted
                                              analysis#

                                              * Ranking investment
                                              projects#

MIE--Microeconomics    An introductory        * Nature and
                       course providing a     functions of product
                       thorough               markets
                       understanding of
                       economic principles    * Marginal analysis
                       for individual         (relevant costs)#
                       decision makers,
                       both consumers and     * Pricing#
                       producers, within
                       the larger economic    * Government's role
                       system.                in promoting
                                              efficiency and
                                              equity in the
                                              economy

OP--Operations         An intermediate        * Business process
Management             management course      control and
                       that examines          performance
                       problems encountered   evaluation#
                       in planning,
                       operating, and         * Production
                       controlling the        systems#
                       production of goods
                       and services.          * Competition,
                                              strategy, and
                                              productiveness

                                              * Forecasting#

                                              * Product and
                                              service design

                                              * Strategic
                                              capacity#

                                              * Quality control

                                              * Capacity and
                                              facilities
                                              management

                                              * Inventory
                                              management#

                                              * JIT inventory#

                                              * Six Sigma

                                              * Resource
                                              allocation#

                                              * Theory of
                                              constraints#

                                              * Logistics

                                              * Supply chain
                                              management

                                              * Scheduling

                                              * Project management

                                              * Balanced
                                              scorecard#

                                              * Operational
                                              efficiencies#

TAX--Federal Income    Introduces and         * Tax implications
Taxation               develops a basic       for operational
                       under-standing of      decisions
                       federal income tax
                       law and its effects    * Tax implications
                       on income, tax         for investment
                       planning, and other    decisions#
                       business decisions.
                                              * Tax implications
                                              for individual and
                                              entity type
                                              (C-Corp., S-Corp.,
                                              LLC, etc.)

                                              * Measurement of
                                              income and expense

                                              * IRS tax code

Note: Topics covered on CMA exam listed in bold indicated by #.

Appendix 2: Typical Graduate Course Descriptions

       Course           Course Description       Typical Course
                                                Content (Topics
                                              Covered on CMA Exam
                                                listed in Bold)

AIS--Accounting        Undergrad              * Internal control
Information Systems    prerequisite (see      risk assessment#
                       under-graduate
                       listing).              * AIS controls#

                                              * COBIT

                                              * Enterprise risk
                                              management#

                                              * IT governance

                                              * Business processes

                                              * Systems
                                              development life
                                              cycle

AM--Accounting for     Introduces             * Financial
Managers               accounting concepts    statement analysis
                       and accounting         and interpretation#
                       system operating
                       characteristics.       * Fair value
                       Course focus is on     accounting#
                       the use of financial
                       and managerial         * IFRS vs. U.S.
                       accounting             GAAP and other
                       information for        international
                       decision-making        issues#
                       purposes.
                                              * Cash flow
                                              statement
                                              preparation and
                                              analysis#

                                              * Earnings quality#

                                              * Cost-volume-
                                              profit analysis#

                                              * Marginal analysis#

                                              * Tax implications
                                              for operational
                                              decisions

                                              * Pricing#

                                              * Ethical
                                              considerations for
                                              the organization#

                                              * Risk assessment#

                                              * Internal control
                                              environment#

                                              * Internal auditing
                                              and types of audits#

AUD--Auditing          Undergrad              * Risk assessment
                       prerequisite (see      (the entity, its
                       undergrad listing).    environment, and
                                              internal control)#

                                              * Materiality and
                                              risk (types and
                                              measures)

                                              * Types of audits
                                              and reports#

                                              * AIS controls#

                                              * Evidence type and
                                              quality

                                              * Audit,
                                              attestation, and
                                              quality control
                                              standards

                                              * Professional
                                              ethics and legal
                                              liability#

                                              * Management
                                              assertions and audit
                                              evidence

BLE--Business/         Examines and           * Ethical
Legal/Ethics/Corp.     evaluates the legal    considerations for
Governance             environment and        management, the
                       ethical challenges     organization, and
                       facing management      accounting
                       in order to enhance    professionals#
                       corporate
                       accountability,        * Ethical theory,
                       foster an ethical      principles, and
                       work environment,      application#
                       ensure legal
                       compliance, and        * Corporate ethics
                       provide effective      consistency#
                       leadership within
                       the organization.      * Corporate
                                              governance#

CA--Cost/Advanced      Undergrad              * Budgeting and
Managerial             prerequisite (see      planning (master
Accounting             undergrad listing)     budget)#
                       or elective.
                                              * Control and
                                              performance
                                              evaluation#

                                              * Cost concepts and
                                              systems#

                                              * Overhead
                                              allocation#

                                              * Standard costs and
                                              variance analysis#

                                              * Responsibility
                                              accounting#

                                              * Balanced
                                              scorecard#

                                              * Cost-volume-profit
                                              analysis#

                                              * Marginal analysis
                                              (e.g., relevant
                                              costs)#

                                              * Make vs. buy
                                              decisions#

                                              * Pricing#

                                              * Business process
                                              performance#

CF--Corporate          Introduces the         * Capital budgeting
Finance/Financial      theory, methods,       concepts; planning
Management             and applications of    process#
                       corporate finance.
                       Emphasis is placed     * Forecasting#
                       on the development
                       of problem-solving     * Flexible budgets,
                       skills for the         control, and
                       business manager.      performance
                                              evaluation factors#

                                              * Financial
                                              statement purposes,
                                              interpretations, and
                                              limitations#

                                              * Fair value
                                              accounting#

                                              * Earnings quality#

                                              * Risk (types,
                                              measures,
                                              assessment, and
                                              analysis)#

                                              * Portfolio
                                              management

                                              * Financial
                                              instruments#

                                              * Cost of capital#

                                              * Working capital
                                              management#

                                              * Raising capital
                                              and capital
                                              structure#

                                              * Mergers and
                                              acquisitions#

                                              * Dividend policy#

                                              * International
                                              finance

                                              * Cost-volume-profit
                                              analysis#

                                              * Marginal analysis#

                                              * Tax implications
                                              for operational and
                                              investment
                                              decisions#

ECO--Economic          Introduces the         * Individual market
Analysis               economic decisions     behavior
(Macro/Micro)          firms must make
                       regularly. Emphasis    * Producer/consumer
                       is on market           analysis
                       structure,
                       industrial             * Cost analysis#
                       performance, firm
                       strategic              * Market demand
                       interaction, and
                       individual market      * Individual demand
                       behavior.
                                              * Pricing strategy#

                                              * Market power

                                              * Government
                                              regulation

FA--Financial          Undergrad              * Types of business
Accounting             prerequisite (see      organization
                       undergrad listing).
                                              * Financial
                                              statement type,
                                              purpose,
                                              preparation, and
                                              analysis#

                                              * The accounting
                                              cycle

                                              * Analyzing and
                                              recording business
                                              transactions

                                              * Revenue, expense,
                                              asset, and liability
                                              concepts

                                              * Merchandising
                                              operations and
                                              inventory

                                              * Historical cost
                                              vs. fair value
                                              accounting#

                                              * Working capital
                                              concepts#

                                              * Earnings quality#

                                              * Cash flow
                                              statement
                                              preparation and
                                              analysis#

FSA--Financial         An intermediate        * Internal auditing
Statement Analysis     course using           and types of audits#
                       financial statements
                       to analyze the         * Financial
                       quality of reported    statement purposes
                       earnings and predict   and limitations#
                       a firm's value.
                                              * Financial
                                              statement
                                              interpretation#

                                              * Fair value
                                              accounting#

                                              * Cash flow
                                              analysis#

                                              * Earnings quality#

                                              * Dividend policy#

                                              * Tax implications
                                              for operational and
                                              investment
                                              decisions#

                                              * Capital investment
                                              risk analysis#

                                              * Valuation methods#

IA--Intermediate       Undergrad              * Financial
Accounting             prerequisite (see      statement purpose,
                       undergrad listing).    preparation, and
                                              analysis

                                              * Financial
                                              statement
                                              limitations#

                                              * Asset, liability,
                                              and equity account
                                              analysis#

                                              * Fair value
                                              accounting#

                                              * IFRS vs. U.S.
                                              GAAP and other
                                              international
                                              issues#

                                              * Cash flow
                                              statement
                                              preparation and
                                              analysis#

                                              * Earnings quality#

                                              * Valuation methods#

                                              * Financial
                                              instruments#

                                              * Dividend policy#

                                              * Pensions and post-
                                              retirement benefits

                                              * Capital leases#

                                              * Revenue
                                              recognition and
                                              measurement#

IB--International      Emphasizes economic    * Competitive
Business               analysis of the        advantages
                       forces driving
                       international          * Competitive
                       business. It equips    strategies
                       managers with a
                       comprehensive          * Alternative modes
                       framework to           of market entry
                       formulate objectives
                       and strategies for     * Intermediary
                       global operations.     import and export

                                              * Foreign suppliers
                                              and distributors

                                              * Foreign direct
                                              investment (FDI)

IF--International      Analyzes the           * Foreign exchange
Finance                international          risk: measurement
                       financial              and management#
                       environment with
                       an emphasis on         * Foreign exchange
                       foreign exchange       investment, hedging,
                       markets and            speculation, and
                       financial              arbitrage#
                       management.
                                              * Currency futures,
                                              forwards, and
                                              options#

                                              * Optimal short--and
                                              long-term borrowing
                                              and investment
                                              decision making#

                                              * Multinational
                                              corporate cost of
                                              capital and capital
                                              budgeting

                                              * Country debt

                                              * Exchange rate
                                              fluctuation#

                                              * Forecasting
                                              foreign exchange
                                              rates

ITL--International     Provides a broad-      * IFRS vs. U.S. GAAP
Accounting             based understanding    and other
                       of the international   international
                       dimensions of          issues#
                       accounting
                       standards,             * International
                       transactions, and      corporate governance
                       financial
                       statements.            * International
                                              taxation and
                                              transfer pricing#

                                              * Foreign currency
                                              transactions,
                                              hedging, and risk

                                              * Foreign currency
                                              financial statement
                                              translation

                                              * Strategic
                                              accounting issues of
                                              multi- national
                                              companies

INV--Investments       An in-depth course     * Market
                       on portfolio theory    participation
                       risk analysis,
                       strategy, and market   * Efficient markets
                       application for
                       equities, fixed-       * Financial
                       income securities,     instruments: fixed
                       options, and other     income and equity#
                       investment
                       products.              * Financial markets:
                                              fixed income and
                                              equity

                                              * Derivatives#

                                              * Futures and
                                              options

                                              * Mutual funds

                                              * Financial
                                              investment
                                              valuation#

                                              * Portfolio
                                              management

                                              * International
                                              investments and
                                              markets

                                              * Risk analysis in
                                              capital budgeting#

                                              * Risk assessment#

                                              * Valuation methods#

IT--Managing           Introduces             * IS business
Information            information systems    systems
Technology             fundamentals,
                       tools, and             * IS concepts
                       techniques neces-
                       sary to operate        * Strategy
                       effectively in a
                       computerized           * System and
                       business               application software
                       environment.
                                              * Database management

                                              * Data resource
                                              management

                                              * IS development

                                              * Security
                                              management

                                              * Enterprise
                                              business systems

MA--Managerial         Undergrad              * Cost concepts,
Accounting             prerequisite (see      terminology, and
                       undergrad listing).    measurement#

                                              * Budgeting,
                                              planning, and
                                              controlling costs#

                                              * Activity-based and
                                              other cost
                                              management concepts#

                                              * Performance
                                              evaluation and
                                              balanced scorecard#

                                              * Cost allocation#

                                              * Standard costs and
                                              variance analysis#

                                              * Cost-volume-profit
                                              analysis#

                                              * Marginal analysis
                                              (relevant costing)#

                                              * Discounted cash
                                              flow concepts#

                                              * Capital budget
                                              tools (NPV, IRR)#

                                              * Nondiscounted
                                              analysis#

                                              * Ranking investment
                                              projects#

MCS--Management        An advanced course     * Control
Control Systems        focusing on            environment#
                       management design,
                       implementation,        * Organizational
                       strategy, and use      strategy and
                       of planning and        behavior
                       control systems.
                                              * Responsibility
                                              centers: revenue,
                                              expense, and profit#

                                              * Transfer pricing#

                                              * Measuring and
                                              controlling assets
                                              and costs

                                              * Strategic planning

                                              * Budgets#

                                              * Performance
                                              measurement#

                                              * Balanced
                                              scorecard#

                                              * Management
                                              compensation

                                              * Corporate
                                              governance#

                                              * Ethical models#

MKT--Marketing         An intermediate        * Market
Management             course examining       opportunities
                       the management of
                       marketing              * Market strategy
                       operations and         and planning
                       systems.
                                              * Market mix,
                                              segmentation,
                                              targeting, and
                                              position

                                              * Buyer behavior

                                              * Customer resource
                                              management

                                              * Market channels
                                              and supply chain

OB--Organizational     Provides an overview   * Organizational
Behavior               of issues, problems,   culture
                       and theories
                       of human behavior      * Leadership
                       at work.
                                              * Motivation and
                                              participation

                                              * Teamwork

                                              * Career issues

                                              * Job enrichment

                                              * Work design

OP--Operations         Introduces the         * Business process
Management             efficient production   control and
                       of goods and           performance
                       services by            evaluation#
                       analyzing processes,
                       ensuring quality,      * Production systems
                       creating value, and
                       managing the flow of   * Competition,
                       information and        strategy, and
                       products along the     productiveness
                       supply chain.
                                              * Forecasting#

                                              * Product and
                                              service design

                                              * Strategic capacity

                                              * Quality control

                                              * Capacity and
                                              facilities
                                              management#

                                              * Inventory
                                              management#

                                              * JIT Inventory#

                                              * Six Sigma

                                              * Resource
                                              allocation#

                                              * Theory of
                                              constraints#

                                              * Logistics

                                              * Supply chain
                                              management

                                              * Scheduling

                                              * Project management

                                              * Balanced
                                              scorecard#

                                              * Operational
                                              efficiencies#

QA--Quantitative       Introduces             * Displaying and
Analysis/Statistics    quantitative methods   exploring data
                       and their business
                       applications.          * Probability
                                              analysis and
                                              concepts#

                                              * Forecasting#

                                              * Statistical
                                              sampling methods

                                              * Linear and
                                              nonlinear
                                              programming

                                              * Analysis of
                                              variance

SEC--Securities,       Introduces the         * Financial markets
Markets, and           structure and
Financial              functions of money     * Financial
Institutions           and capital markets,   institutions
                       saving investment
                       processes, financial   * Monetary policy
                       intermediaries,
                       interest rates, and    * Financial
                       the supply and         instruments#
                       demand for loan-
                       able funds.            * Money, stock,
                                              bond, and mortgage
                                              markets

                                              * Foreign exchange
                                              and the
                                              international
                                              financial system#

                                              * Interest rates and
                                              valuation#

                                              * Risk management#

SM--Strategic          Integrates prior       * Crafting and
Management             business courses       executing strategy
                       and focuses on
                       corporate and          * Evaluating a
                       divisional policy,     firm's external
                       organizational         environment,
                       change, competition,   resources, and
                       and strategic          competitive position
                       decision making.
                                              * Organizational
                                              objectives and
                                              structure

                                              * Diversification

                                              * Competitive
                                              strategy

                                              * Foreign market
                                              strategy

                                              * Ethical strategies

                                              * Corporate culture
                                              and leadership

                                              * Vertical
                                              integration

                                              * Strategic
                                              alliances

                                              * Mergers and
                                              acquisitions#

TAX--Income Tax        Undergrad              * Tax implications
Accounting             prerequisite (see      for operational
                       undergrad listing).    decisions

                                              * Tax implications
                                              for investment
                                              decisions#

                                              * Tax implications
                                              for individual and
                                              entity type
                                              (C-Corp., S-Corp.,
                                              LLC, etc.)

                                              * Measurement of
                                              income and expense

                                              * IRS tax code

Note: Topics Covered on CMA Exam listed in Bold indicated by #.


Lori R. Fuller, Ph.D., CPA, is an associate professor of accounting at West Chester University and is a member of IMA's Wilmington Chapter. She can be reached at (610) 738-0493 or lfuller@wcupa.edu.

Joseph M. Hargadon, Ph.D., CMA, CPA, is a professor of accounting and Department Head of Accounting & Information Management at Widener University in Chester, Pa., and is a member of IMA's Greater Philadelphia Chapter. He can be reached at (610) 499-4280 or\imhargadon@widener.edu.

Raef Lawson, Ph.D., CMA, CPA, CFA, AICWA, FCMA, is Professor-in-Residence and vice president of research at IMA. He also is a member of IMA's North Jersey Shore Chapter. You can reach Raef at (201) 474-1532 or rlawson@imanet.org.

Carl S. Smith, Ph.D., CMA, CFM, CPA, is a former IMA Chair and is an associate professor of accounting and the director of graduate programs in accounting and taxation for the Barney School of Business at the University of Hartford in West Hartford, Conn. He also is a member of IMA's Hartford Chapter. You can reach Carl at (860) 768-4343 or casmith@hartford.edu.
Table 1: Typical Undergraduate Program Curriculum

(a) Accounting Program (1,3,4)

ADV      Advanced Accounting                         REQ
AIS      Accounting Information Systems             ELEC
AUD      Auditing                                    REQ
BE       Business Ethics                             REQ
CA       Cost Accounting/Advanced Managerial     ELEC or REQ
CF       Corporate Finance (Intermediate)            REQ
FA       Financial Accounting                        REQ
INT      Intermediate Accounting                     REQ
IF       International Finance                      ELEC
INV      Investments                                ELEC
MA       Managerial Accounting                       REQ
MIE      Microeconomics                              REQ
OP       Operations Management                      ELEC
TAX      Federal Income Taxation                     REQ

(b) Finance Program (2,3,4)

ADV      Advanced Accounting                        ELEC
AIS      Accounting Information Systems             ELEC
AUD      Auditing                                   ELEC
BE       Business Ethics                             REQ
CA       Cost Accounting                            ELEC
CF       Corporate Finance (Intermediate)            REQ
FA       Financial Accounting                        REQ
INT      Intermediate Accounting                    ELEC
IF       International Finance                       REQ
INV      Investments                                 REQ
MA       Managerial Accounting                       REQ
MIE      Microeconomics                              REQ
OP       Operations Management                      ELEC
TAX      Federal Income Taxation                    ELEC

Key: REQ = required, ELEC = elective

Notes:

(1) In most undergraduate accounting degree programs, at least one
course in Corporate Finance (CF) is required.

(2) In most undergraduate finance degree programs, at least two
accounting courses--Financial Accounting (FA) and Managerial
Accounting (MA)--are required.

(3) In most undergraduate accounting and finance degree programs, at
least one course in Operations Management (OPM), Microeconomics
(MIE), and Business Ethics (BE) is required.

(4) The business courses listed are not all inclusive for each
respective degree/program.

Table 2: CMA Content Coverage in a Typical Undergraduate
Accounting Program

(a) Part 1--Financial Planning, Performance and Control

                                       Heavy     Moderate     Limited

A. Planninq, Budqetinq, and
Forecastinq (30%)

1. Budgeting concepts and planning      CA          MA
processes

2. Budget types (activity-based                   CA, MA
budgeting, flexible budqetinq,
project budqetinq)

3. Annual profit plans (master                    CA, MA        CF
budget)

4. Forecasting (including use of                    CF          MA
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and                  CA, MA        OP
performance  evaluation factors

2. Variance analysis and standard       CA                      MA
costs

3. Responsibility accounting and                    CA          MA
segment analysis (e.g., cost
centers, revenue centers, ROI)

4. Balanced scorecard                               MA          CA

C. Cost Management (25%)

1. Cost concepts and terminology      CA, MA

2. Costing systems (job order,          CA          MA
process costing)

3. Overhead allocation (e.g., ABC       CA          MA
costing)

4. Business process performance                     MA        CA, OP
and operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal      AIS, AUD
control environment

2. Internal auditing and audit                      AUD
types

3. Accounting information system        AIS         AUD
controls

E. Professional Ethics (5%)

1. Ethical considerations for                       MA          AUD
management accounting
professionals

                                      Slight       None

A. Planninq, Budqetinq, and
Forecastinq (30%)

1. Budgeting concepts and planning      CF
processes

2. Budget types (activity-based         CF
budgeting, flexible budqetinq,
project budqetinq)

3. Annual profit plans (master
budget)

4. Forecasting (including use of
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and        CF
performance  evaluation factors

2. Variance analysis and standard
costs

3. Responsibility accounting and
segment analysis (e.g., cost
centers, revenue centers, ROI)

4. Balanced scorecard

C. Cost Management (25%)

1. Cost concepts and terminology

2. Costing systems (job order,
process costing)

3. Overhead allocation (e.g., ABC
costing)

4. Business process performance
and operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal
control environment

2. Internal auditing and audit          AIS
types

3. Accounting information system
controls

E. Professional Ethics (5%)

1. Ethical considerations for         BE, CA
management accounting
professionals

(b) Part 2-Financial Decision Making

                                      Heavy     Moderate   Limited

A. Financial Statement Analysis
(25%)

1. Financial statement purposes        ADV,                   CF
and limitations                      FA, INT

2. Financial statement               ADV, CF    AUD, INT      FA
interpretation (including ratio
and comparative analyses)

3. Fair value acct., market value      ADV        INT
vs. book value

4. IFRS vs. U.S. GAAP and other                 ADV, INT
international issues

5. Cash flow statement preparation     INT         CF
and analysis

6. Earnings quality                                          INT

B. Corporate Finance (25%)

1. Risk (types and measures)                       CF        AUD

2. Portfolio management                                       CF

3. Financial instruments                                      CF
(including options and futures)

4. Cost of capital                      CF

5. Working capital management                      CF

6. Raising capital and capital                     CF        INT
structure

7. Mergers and acquisitions                                   CF
(restructurings)

8. Dividend policy                                 CF

9. International finance

10. Financial investments

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis        MA, CA                  CF

2. Marginal analysis (relevant                  CA, MIE       CF
costing)

3. Tax implications for                                       CF
operational decisions

4. Pricing                                                 CA, MIE

5. Risk assessment (operational,                  INV         CF
hazard, financial, and strategic)

6. Enterprise risk management                     AIS        AUD
(ERM)

D. Investment Decisions (20%)

1. Capital budgeting tools              CF         MA         CA

2. Discounted cash flow concepts        CF         MA        INT
(NPV, IRR)

3. Nondiscounted analysis (e.g.,        CF                    MA
payback)

4. Ranking investment projects          CF                    MA

5. Tax implications for investment                         CF, INV
decisions

6. Capital investment risk              CF
analysis

7. Valuation methods                            CF, INV      INT

8. Capital budgeting risk analysis      CF

E. Professional Ethics (5%)

1. Ethical considerations for the       BE        AUD
organization

                                      Slight      None

A. Financial Statement Analysis
(25%)

1. Financial statement purposes
and limitations

2. Financial statement
interpretation (including ratio
and comparative analyses)

3. Fair value acct., market value     CF, FA
vs. book value

4. IFRS vs. U.S. GAAP and other       CF, FA
international issues

5. Cash flow statement preparation      FA
and analysis

6. Earnings quality                   CF, FA

B. Corporate Finance (25%)

1. Risk (types and measures)

2. Portfolio management

3. Financial instruments               INT
(including options and futures)

4. Cost of capital                      MA

5. Working capital management           FA

6. Raising capital and capital
structure

7. Mergers and acquisitions            ADV
(restructurings)

8. Dividend policy                     INT

9. International finance                CF

10. Financial investments                          X

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis

2. Marginal analysis (relevant
costing)

3. Tax implications for                TAX
operational decisions

4. Pricing

5. Risk assessment (operational,
hazard, financial, and strategic)

6. Enterprise risk management
(ERM)

D. Investment Decisions (20%)

1. Capital budgeting tools

2. Discounted cash flow concepts        CA
(NPV, IRR)

3. Nondiscounted analysis (e.g.,        CA
payback)

4. Ranking investment projects          CA

5. Tax implications for investment      MA
decisions

6. Capital investment risk
analysis

7. Valuation methods                    FA

8. Capital budgeting risk analysis

E. Professional Ethics (5%)

1. Ethical considerations for the       CF
organization

Table 3: CMA Content Coverage in a Typical Undergraduate
Finance Program

(a) Part 1-Financial Planning, Performance and Control

                                      Heavy     Moderate   Limited

A. Planning, Budgeting, and
Forecasting (30%)

1. Budgeting concepts and planning                 MA
processes

2. Budget types (activity-based                    MA
budgeting, flexible budgeting,
project budgeting)

3. Annual profit plans (master                     MA         CF
budget)

4. Forecasting (including use of                   CF         MA
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and                   MA         OP
performance evaluation factors

2. Variance analysis and standard                             MA
costs

3. Responsibility accounting and                              MA
segment analysis (e.g., cost
centers, revenue centers, ROI)

4. Balanced scorecard                              MA

C. Cost Management (25%)

1. Cost concepts and terminology        MA

2. Costing systems (job order,                     MA
process costing)

3. Overhead allocation (e.g., ABC                  MA
costing)

4. Business process performance                    MA         OP
and operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal
control environment

2. Internal auditing and audit
types

3. Accounting information system
controls

E. Professional Ethics (5%)

1. Ethical considerations for                      MA         CF
management accounting
professionals

                                      Slight      None

A. Planning, Budgeting, and
Forecasting (30%)

1. Budgeting concepts and planning      CF
processes

2. Budget types (activity-based         CF
budgeting, flexible budgeting,
project budgeting)

3. Annual profit plans (master
budget)

4. Forecasting (including use of
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and        CF
performance evaluation factors

2. Variance analysis and standard
costs

3. Responsibility accounting and
segment analysis (e.g., cost
centers, revenue centers, ROI)

4. Balanced scorecard

C. Cost Management (25%)

1. Cost concepts and terminology

2. Costing systems (job order,
process costing)

3. Overhead allocation (e.g., ABC
costing)

4. Business process performance
and operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal                    X
control environment

2. Internal auditing and audit                     X
types

3. Accounting information system                   X
controls

E. Professional Ethics (5%)

1. Ethical considerations for           BE
management accounting
professionals

(b) Part 2-Financial Decision Making

                                      Heavy     Moderate   Limited

A. Financial Statement Analysis
(25%)

1. Financial statement purposes         FA                    CF
and limitations

2. Financial statement                  CF         FA
interpretation (including ratio
and comparative analysis)

3. Fair value acct., market value
vs. book value

4. IFRS vs. U.S. GAAP and other
international issues

5. Cash flow statement preparation                 CF
and analysis

6. Earnings quality

B. Corporate Finance (25%)

1. Risk (types and measures)                       CF

2. Portfolio management                INV                    CF

3. Financial instruments               INV                    CF
(including options and futures)

4. Cost of capital                      CF

5. Working capital management                      CF

6. Raising capital and capital                     CF
structure

7. Mergers and acquisitions                                   CF
(restructurings)

8. Dividend policy                                 CF

9. International finance                IF

10. Financial investments              INV

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis          MA                    CF

2. Marginal analysis (relevant                    MIE         CF
costing)

3. Tax implications for                                       CF
operational decisions

4. Pricing                                                   MIE

5. Risk assessment (operational,                  INV         CF
hazard, financial, and strategic)

6. Enterprise risk management
(ERM)

D. Investment Decisions (20%)

1. Capital budgeting tools (NPV,        CF         MA
IRR)

2. Discounted cash flow concepts        CF         MA

3. Nondiscounted analysis (e.g.,        CF                    MA
payback)

4. Ranking investment projects          CF                    MA

5. Tax implications for investment                         CF, INV
decisions

6. Capital investment risk              CF
analysis

7. Valuation methods                            CF, INV

8. Risk analysis in capital             CF
budgeting

E. Professional Ethics (5%)

1. Ethical considerations for the       BE        INV
organization

                                      Slight      None

A. Financial Statement Analysis
(25%)

1. Financial statement purposes
and limitations

2. Financial statement
interpretation (including ratio
and comparative analysis)

3. Fair value acct., market value     CF, FA
vs. book value

4. IFRS vs. U.S. GAAP and other       CF, FA
international issues

5. Cash flow statement preparation      FA
and analysis

6. Earnings quality                   CF, FA

B. Corporate Finance (25%)

1. Risk (types and measures)

2. Portfolio management

3. Financial instruments
(including options and futures)

4. Cost of capital                      MA

5. Working capital management           FA

6. Raising capital and capital
structure

7. Mergers and acquisitions
(restructurings)

8. Dividend policy

9. International finance                CF

10. Financial investments

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis

2. Marginal analysis (relevant
costing)

3. Tax implications for
operational decisions

4. Pricing

5. Risk assessment (operational,
hazard, financial, and strategic)

6. Enterprise risk management                      X
(ERM)

D. Investment Decisions (20%)

1. Capital budgeting tools (NPV,
IRR)

2. Discounted cash flow concepts

3. Nondiscounted analysis (e.g.,
payback)

4. Ranking investment projects

5. Tax implications for investment      MA
decisions

6. Capital investment risk
analysis

7. Valuation methods                    FA

8. Risk analysis in capital
budgeting

E. Professional Ethics (5%)

1. Ethical considerations for the       CF
organization

Table 4: Course Recommendations for Undergraduate Accounting Majors

                                                Typical
                       Course                  Class Year

AIS     Accounting Information Systems             JR
AUD     Auditing                                   SR
BE      Business Ethics                            JR
CA      Cost Accounting/Advanced Managerial      JR/SR
CF      Corporate Finance (Intermediate)           JR
FA      Financial Accounting                      SOPH
INT     Intermediate Accounting                    JR
IF      International Finance                    JR/SR
INV     Investments                              JR/SR
MA      Managerial Accounting                     SOPH
MIE     Microeconomics                            SOPH
OP      Operations Management                      JR
TAX     Federal Income Taxation                  JR/SR

Table 5: Suggested Program of Study: Starting in Junior Year
Undergraduate Accounting Majors

   Fall Semester         Spring Semester          Summer Term

Junior Year

Intermediate           Intermediate           CMA Exam Part 2
Accounting I           Accounting II

Corporate Finance      International          (May/June)
                       Finance (Elect)

Management/            Investments (Elect)
Organization
Behavior

Accounting             Business Ethics
Information Systems

Marketing              Operations
                       Management

Senior Year

Cost Accounting        Business Law           * If a candidate
                                              is not able to
Auditing               Accounting Capstone    prepare for Part 1
                                              of the CMA exam in
Business Capstone      Federal Income         the Fall of the
                       Taxation               senior year, the
                                              Summer term is a
Free Electives (2)     Free Electives (2)     backup. (May/June)

CMA Exam Part 1 *
(January)

Table 6: Course Recommendations for Undergraduate Finance Majors

                                                           Typical
                            Course                        Class Year

AIS    Accounting Information Systems                         JR
AUD    Auditing (desirable)                                 JR/SR
BE     Business Ethics                                        JR
CA     Cost Accounting (desirable)/Advanced Managerial        JR
CF     Corporate Finance                                      JR
FA     Financial Accounting                                  SOPH
INT    Intermediate Accounting                                JR
IF     International Finance                                JR/SR
INV    Investments                                          JR/SR
MA     Managerial Accounting                                 SOPH
MIE    Microeconomics                                        SOPH
OP     Operations Management (desirable)                      JR

Table 7: Typical Graduate Program Curriculum

(a) Master of Accountancy Program

AIS      Accounting Information Systems                    PRE
AUD      Auditing                                          PRE
BLE      Business/Legal/Ethics/Corp. Governance        REQ or ELEC
CA       Cost Accounting/Advanced Managerial           REQ or ELEC
CF       Corporate Finance                             REQ or ELEC
FA       Introductory Financial Accounting                 PRE
FSA      Financial Statement Analysis                  REQ or ELEC
GOV      Governmental and Nonprofit Accounting             ELEC
INV      Investments                                       ELEC
INT      Intermediate Accounting                           PRE
ITL      International Accounting                          ELEC
MA       Management Accounting                             PRE
MCS      Management Control Systems                    REQ or ELEC
QA       Quantitative Analysis/Statistics           PRE or REQ or ELEC
SEC      Securities, Markets, and Financial            REQ or ELEC
         Institutions
TAX      Federal Income Taxation                           PRE

(b) MBA Program

AM       Accounting for Managers                           REQ
BLE      Behavioral/Legal/Ethics/Corp. Governance          REQ
CF       Corporate Finance/Financial Management            REQ
ECO      Economic Analysis (Micro/Macro)                   REQ
FA       Introductory Financial Accounting                 PRE
IB       International Business                            REQ
IT       Managing Information Technology                   REQ
INV      Investments                                       ELEC
MA       Managerial Accounting                             PRE
MKT      Marketing Management                              REQ
OB       Organizational Behavior                           REQ
OP       Operations Management                             REQ
QA       Quantitative Analysis/Statistics                  REQ
SM       Strategic Management                              REQ

Key: PRE = prerequisite/foundational, REQ = required,
ELEC = elective

Table 8: CMA Content Coverage in a Typical Master of Accountancy
Program

(a) Part 1--Financial Planning, Performance and Control

                                       Heavy     Moderate   Limited

A. Planning, Budgeting, and
Forecasting (30%)

1. Budgeting concepts and planning       CA         MA
processes

2. Types of budgets (activity-based      CA         MA
budgeting, flexible budgeting,
project budgeting)

3. Annual profit plans                            CA, MA       CF

4. Forecasting (including use of                    CF         MA
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and        MCS       CA, MA
performance evaluation factors

2. Variance analysis and standard     MCS, CA                  MA
costs

3. Responsibility accounting and        MCS         CA         MA
segment analysis (e.g., cost
centers, revenue centers)

4. Balanced scorecard                   MCS         MA         CA

C. Cost Management (25%)

1. Cost concepts and terminology      CA, MA,
                                        MCS
2. Costing systems (job order,           CA      MA, MCS
process costing)

3. Overhead allocation (e.g., ABC     CA, MCS       MA
costing)

4. Business process performance and     MCS       MA, OP       CA
operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal       AIS, AUD
control environment

2. Internal auditing and audit          AUD                   SEC
types

3. Accounting information system        AIS        AUD
controls

E. Professional Ethics (5%)

1. Ethical considerations for                     CA, MA      AUD,
management accounting professionals                           BLE

                                       Slight      None

A. Planning, Budgeting, and
Forecasting (30%)

1. Budgeting concepts and planning       CF
processes

2. Types of budgets (activity-based      CF
budgeting, flexible budgeting,
project budgeting)

3. Annual profit plans

4. Forecasting (including use of
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and         CF
performance evaluation factors

2. Variance analysis and standard
costs

3. Responsibility accounting and
segment analysis (e.g., cost
centers, revenue centers)

4. Balanced scorecard

C. Cost Management (25%)

1. Cost concepts and terminology

2. Costing systems (job order,
process costing)

3. Overhead allocation (e.g., ABC
costing)

4. Business process performance and
operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal
control environment

2. Internal auditing and audit        AIS, FSA
types

3. Accounting information system
controls

E. Professional Ethics (5%)

1. Ethical considerations for
management accounting professionals

(b) Part 2--Financial Decision Making

                                       Heavy     Moderate   Limited

A. Financial Statement Analysis
(25%)

1. Financial statement purposes and      FA        FIN         CF
limitations

2. Financial statement                FIN, CF       FA        INT
interpretation (including ratio and
comparative analysis)

3. Fair value acct., market value                  INT        FIN
vs. book value

4. IFRS vs. U.S. GAAP and other         ITL        INT
international issues

5. Cash flow statement preparation      INT         CF        FIN
and analysis

6. Earnings quality                                FIN

B. Corporate Finance (25%)

1. Risk (types and measures)                        CF        AUD

2. Portfolio management                 INV        SEC         CF

3. Financial instruments                INV        SEC         CF
(including options and futures)

4. Cost of capital                       CF        SEC

5. Working capital management            CF

6. Raising capital and capital          SEC         CF      FIN, INT
structure

7. Mergers and acquisitions                        SEC         CF
(restructurings)

8. Dividend policy                                  CF        FIN

9. International finance                         SEC, ITL

10. Financial investments               INV

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis           MA       CA, MA    CF, MCS

2. Marginal analysis (relevant                    CA, MA    CF, MCS
costing)

3. Tax implications for operational                         CF, FIN
decisions

4. Pricing                                                   CA, MA

5. Risk assessment (operational,                 AUD, INV   CF, MCS
hazard, financial, and strategic)

6. Enterprise risk management (ERM)                AIS      AUD, MCS

D. Investment Decisions (20%)

1. Capital budgeting tools (NPV,         CF         MA        MCS
IRR)

2. Discounted cash flow concepts         CF         MA        INT

3. Nondiscounted analysis (e.g.,                    CF         MA
payback)

4. Ranking investment projects           CF                    MA

5. Tax implications for investment                          CF, INV
decisions

6. Capital investment risk               CF
analysis

7. Valuation methods                             CF, INV      INT

8. Risk analysis in capital              CF        INV
budgeting

E. Professional Ethics (5%)

1. Ethical considerations for the        BE        AUD
organization

                                       Slight      None

A. Financial Statement Analysis
(25%)

1. Financial statement purposes and
limitations

2. Financial statement                  AUD
interpretation (including ratio and
comparative analysis)

3. Fair value acct., market value      FA, CF
vs. book value

4. IFRS vs. U.S. GAAP and other        CF, FA
international issues

5. Cash flow statement preparation       FA
and analysis

6. Earnings quality                   CF, FA, INT

B. Corporate Finance (25%)

1. Risk (types and measures)             MA

2. Portfolio management

3. Financial instruments                INT
(including options and futures)

4. Cost of capital                       MA

5. Working capital management         FIN, FA

6. Raising capital and capital
structure

7. Mergers and acquisitions
(restructurings)

8. Dividend policy                      INT

9. International finance                 CF

10. Financial investments

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis

2. Marginal analysis (relevant
costing)

3. Tax implications for operational     TAX
decisions

4. Pricing

5. Risk assessment (operational,
hazard, financial, and strategic)

6. Enterprise risk management (ERM)

D. Investment Decisions (20%)

1. Capital budgeting tools (NPV,
IRR)

2. Discounted cash flow concepts

3. Nondiscounted analysis (e.g.,
payback)

4. Ranking investment projects

5. Tax implications for investment    FIN, MA
decisions

6. Capital investment risk            FIN, SEC
analysis

7. Valuation methods                  FA, FIN

8. Risk analysis in capital
budgeting

E. Professional Ethics (5%)

1. Ethical considerations for the     CF, SEC
organization

Table 9: CMA Content Coverage in a Typical MBA Program

(a) Part 1--Financial Planning, Performance and Control

                                       Heavy     Moderate   Limited

A. Planning, Budgeting, and
Forecasting (30%)

1. Budgeting concepts and planning                  MA
processes

2. Types of budgets (activity-based                 MA
budgeting, flexible budgeting,
project budgeting)

3. Annual profit plans                              MA         CF

4. Forecasting (including use of         QA         CF         MA
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and                  MA, OP      ECO
performance evaluation factors

2. Variance analysis and standard                              MA
costs

3. Responsibility accounting and                               MA
segment analysis (e.g., cost
centers, revenue centers)

4. Balanced scorecard                               MA

C. Cost Management (25%)

1. Cost concepts and terminology         MA                   ECO

2. Costing systems (job order,                      MA
process costing)

3. Overhead allocation (e.g., ABC                   MA
costing)

4. Business process performance and               MA, OP
operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal
control environment

2. Internal auditing and audit
types

3. Accounting information system
controls

E. Professional Ethics (5%)

1. Ethical considerations for                       MA      AM, BLE
management accounting professionals


                                       Slight      None

A. Planning, Budgeting, and
Forecasting (30%)

1. Budgeting concepts and planning       CF
processes

2. Types of budgets (activity-based      CF
budgeting, flexible budgeting,
project budgeting)

3. Annual profit plans

4. Forecasting (including use of
regression analysis and learning
curves)

B. Performance Management (25%)

1. Flexible budgets, control and         CF
performance evaluation factors

2. Variance analysis and standard
costs

3. Responsibility accounting and
segment analysis (e.g., cost
centers, revenue centers)

4. Balanced scorecard                    OP

C. Cost Management (25%)

1. Cost concepts and terminology

2. Costing systems (job order,
process costing)

3. Overhead allocation (e.g., ABC
costing)

4. Business process performance and
operational efficiency topics
(e.g., JIT, ABM, theory of
constraints)

D. Internal Controls (15%)

1. Risk assessment and internal          AM
control environment

2. Internal auditing and audit           AM
types

3. Accounting information system         AM
controls

E. Professional Ethics (5%)

1. Ethical considerations for            CF
management accounting professionals

(b) Part 2--Financial Decision Making

                                       Heavy     Moderate   Limited

A. Financial Statement Analysis
(25%)

1. Financial statement purposes and      FA         AM         CF
limitations

2. Financial statement                   CF       AM, FA
interpretation (including ratio and
comparative analysis)

3. Fair value acct., market value                              AM
vs. book value

4. IFRS vs. U.S. GAAP and other                                AM
international issues

5. Cash flow statement preparation                AM, CF
and analysis

6. Earnings quality                                 AM

B. Corporate Finance (25%)

1. Risk (types and measures)                        CF

2. Portfolio management                 INV                    CF

3. Financial instruments (including     INV        SEC         CF
options and futures)

4. Cost of capital                       CF

5. Working capital management            CF

6. Raising capital and capital                      CF
structure

7. Mergers and acquisitions                        STR         CF
(restructurings)

8. Dividend policy                                  CF

9. International finance                           SEC

10. Financial investments               INV

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis                      AM         CF

2. Marginal analysis (relevant                      MA      AM, CF,
costing)                                                      ECO

3. Tax implications for operational                         AM, CF,
decisions                                                     ECO

4. Pricing                                          AM

5. Risk assessment (operational,                 INV, SM     AM, CF
hazard, financial, and strategic)

6. Enterprise risk management (ERM)

D. Investment Decisions (20%)

1. Capital budgeting tools (NPV,         CF         MA
IRR)

2. Discounted cash flow concepts         CF         MA

3. Nondiscounted analysis (e.g.,                    CF         MA
payback)

4. Ranking investment projects           CF                    MA

5. Tax implications for investment                          CF, INV
decisions

6. Capital investment risk               CF
analysis

7. Valuation methods                                CF

8. Risk analysis in capital              CF        INV
budgeting

E. Professional Ethics (5%)

1. Ethical considerations for the       BLE         SM         OB
organization

                                       Slight      None

A. Financial Statement Analysis
(25%)

1. Financial statement purposes and
limitations

2. Financial statement
interpretation (including ratio and
comparative analysis)

3. Fair value acct., market value      CF, FA
vs. book value

4. IFRS vs. U.S. GAAP and other        CF, FA
international issues

5. Cash flow statement preparation       FA
and analysis

6. Earnings quality                    CF, FA

B. Corporate Finance (25%)

1. Risk (types and measures)             MA

2. Portfolio management

3. Financial instruments (including
options and futures)

4. Cost of capital                       MA

5. Working capital management            FA

6. Raising capital and capital
structure

7. Mergers and acquisitions
(restructurings)

8. Dividend policy                       AM

9. International finance                 CF

10. Financial investments

C. Decision Analysis and Risk
Management (25%)

1. Cost-volume-profit analysis

2. Marginal analysis (relevant
costing)

3. Tax implications for operational
decisions

4. Pricing

5. Risk assessment (operational,
hazard, financial, and strategic)

6. Enterprise risk management (ERM)      AM

D. Investment Decisions (20%)

1. Capital budgeting tools (NPV,
IRR)

2. Discounted cash flow concepts

3. Nondiscounted analysis (e.g.,
payback)

4. Ranking investment projects

5. Tax implications for investment       MA
decisions

6. Capital investment risk
analysis

7. Valuation methods                     FA

8. Risk analysis in capital
budgeting

E. Professional Ethics (5%)

1. Ethical considerations for the      AM, CF
organization

Table 10: Course Recommendations for MAcc Students

          Prerequisites/Foundational

AIS       Accounting Information Systems
AUD       Auditing
FA        Financial Accounting
INT       Intermediate Accounting
MA        Management Accounting
QA        Quantitative Analysis Statistics
TAX       Federal Income Taxation

          MAcc Courses

BLE       Business/Legal/Ethics/Corp. Governance
CA        Cost Accounting/Advanced Managerial
CF        Corporate Finance
FSA       Financial Statement Analysis
INV       Investments
MCS       Management Control Systems
QA        Quantitative Analysis/Statistics
SEC       Securities, Markets, and Financial Institutions

Table 11: Course Recommendations for MBA Students

          Prerequisites/Foundational

FA        Financial Accounting
MA        Managerial Accounting
MIE       Microeconomics
QA        Quantitative Analysis/Statistics

          MBA Courses

AIS       Accounting Information Systems
AM        Accounting for Managers
BLE       Behavioral/Legal/Ethics/Corp. Governance
CF        Corporate Finance/Financial Management
ECO       Economic Analysis (Micro/Macro)
IB        International Business
IT        Managing Information Technology
INV       Investments
MKT       Marketing Management (optional, typically required)
MCS       Management Control Systems (desirable)
OB        Organizational Behavior
OP        Operations Management
QA        Quantitative Analysis/ Statistics
SM        Strategic Management
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Title Annotation:Certified Management Accountant
Author:Fuller, Lori; Hargadon, Joseph; Lawson, Raef; Smith, Carl
Publication:Management Accounting Quarterly
Geographic Code:1USA
Date:Sep 22, 2011
Words:8018
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