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CMA

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The CMA (Certified Management Accountant) credential is the gold standard of achievement in accounting and financial management—and the certification with real earning power. Holders of a CMA can earn nearly $25,000 higher total compensation than their noncertified peers.
Achieving the CMA credential demonstrates your mastery of financial planning, analysis, control, decision support, and professional ethics.
These skills are critical to the success of finance teams working within organizations—this focus distinguishes the CMA from other certifications and degrees.
Certified Management Accountant (CMA)
CMA is a globally recognized certificate that equips financial professionals to be part of the financial decision making process and influence the strategic orientation of the organization.
The course will cover the following:
Part I :Financial Planning, Performance and Control
A. Planning, Budgeting and Forecasting
B. Performance Management
C. Cost Management
D. Internal Controls
E. Professional Ethics
Part II: Financial Decision Making
A. Financial Statement Analysis
B. Corporate Finance
C. Decision Analysis and Risk Management
D. Investment Decisions
E. Professional Ethics
Course Fees:
Part1: EGP 3,000

Dear CMA Candidate,
Studying for and passing the CMA Exams is a mission that requires dedication and hard work. From our experience at EgCMA, we know that planning makes this process much easier. Because the exam is available throughout the year and there is no date by which you need to be prepared, studying can seem endless without a proper plan.
We know it is easy to “put things off until tomorrow.” However, you cannot afford to do that. Under the guidelines for the exams introduced in 2010, if you do not register for an exam within 12 months of entering the program, you will be required to pay the entrance fee again. And you will be required to complete the program within three years from entry into the program.
We believe that you will find studying easier and less time consuming if you have a solid plan that targets passing the Part 2 Exam within three to four months after you begin studying. Set out below is a 15-week plan, studying 8 to 10 hours per week. This is simply a guide based on the expected amount of study time for a person with some financial background who is familiar with the basic exam concepts.
As you go through your schedule, you may find yourself getting ahead or somewhat behind due to changes in your work or personal commitments. This does not matter. Each person should study at his or her own pace and feel comfortable with the study process and time required to prepare for the exams.
While studying, there are sure to be topics that are not clear to you and perhaps some that you find incredibly difficult. When encountering these topics, you can always contact WWW.EgCMA.COM and we will help you as much as possible.
Also, keep in mind that you do not need to have 100% knowledge of 100% of the exam content in order to pass. At certain points you will need to decide whether the extra time spent learning something is worth the extra knowledge gained. When in doubt about what to do, contact us and we will guide you.
I wish you great success in your studies and look forward to helping you pass the exams.
Sincerely,
Gamil Mohamed, CPA, ESAA
President and CEO
November 2010
cma

Dear CMA Part 1 Candidate,
Studying for and passing the CMA Exams is a mission that requires dedication and hard work. From our experience at EGCMA ,
we know that planning makes this process much easier. Because the exam is available throughout the year and there is no date by which you need to be prepared, studying can seem endless without a proper plan. We know it is easy to “put things off until tomorrow.” However, you cannot afford to do that. Under the guidelines for the exams introduced in 2010, if you do not register for an exam within 12 months of entering the program, you will be required to pay the entrance fee again. And you will be required to complete the program within three years from entry into the program.
We believe that you will find studying easier and less time consuming if you have a solid plan that targets passing the Part 1 Exam within three to four months after you begin studying. Set out below is a 14-week plan, studying 8 to 10 hours per week. This is simply a guide based on the expected amount of study time for a person with some financial background who is familiar with the basic exam concepts.
As you go through your schedule, you may find yourself getting ahead or somewhat behind due to changes in your work or personal commitments. This does not matter. Each person should study at his or her own pace and feel comfortable with the study process and time required to prepare for the exams.
While studying, there are sure to be topics that are not clear to you and perhaps some that you find incredibly difficult. When encountering these topics, you can always contact WWW.EGCMA.COM and we will help you as much as possible. Also, keep in mind that you do not need to have 100% knowledge of 100% of the exam content in order to pass. At certain points you will need to decide whether the extra time spent learning something is worth the extra knowledge gained. When in doubt about what to do, contact us and we will guide you.
I wish you great success in your studies and look forward to helping you pass the exams.
Sincerely,
Gamil Mohamed, CPA, ESAA
President and CEO
November 2010

CMA Part 1 Study Plan Unit 1: 3 Weeks Section A – Planning, Budgeting and Forecasting EgCMA ♦ www.egcma.com ♦ EgCMA Page 1
Section A contains eight topics. As you read these topics, you will find questions within the reading. The correct answers to the questions appear at the end of the book.
Exam Success
After completing the reading and the questions in the book for each of the topics below, open your Exam Success study software. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success. When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.
The topics in Section A are:
Planning and Budgeting Concepts
This is a conceptual and theoretical discussion of planning and budgeting. You will need to know the terms, ideas and order that the budgets are prepared in, as well as the use for different types of budgets (strategic budgets, capital budgets, etc.).
The class recording files 01 – Intro to Planning and Budgeting through 05 – Standards in Budgeting from the Section A Class Recordings should be listened to after reading the Introduction to Section A, Planning, Budgeting and Forecasting through The Standard Setting Process in the book.
Budget Methodologies, Other Types of Budgets
The second part of the section is numerical. You will need to be able to calculate how many units must be purchased or produced during the period and what the flexible budget would have been, given a master budget and certain level of activity (either sales or production). In this type of flexible budget question, you will need to remember that the budgeted fixed costs can be calculated by multiplying the budgeted level of activity by the budgeted cost per unit. Total fixed costs do not change within the relevant range and the question will be within that range. You also need to be able to calculate the amount of cash collected or paid during the period.
The class recording files 06 – The Different Budgets through 09 – Budgeting Questions from the Section A Class Recordings should be listened to after reading Budget Methodologies through Budgeting Questions (including Cash Flow Questions) in the book.
CMA Part 1 Study Plan Unit 1: 3 Weeks Section A – Planning, Budgeting and Forecasting EgCMA ♦ www.egcma.com ♦ EgCMA Page 2
Forecasting Techniques
This topic covers forecasting techniques that can be used to develop budgeted amounts that are based on premises, or assumptions about the outlook for the environment in which its business operates.
The class recording files 10 – Forecasting through 12 – Causal Forecasting from the Section A Class Recordings should be listened to after reading Forecasting Techniques through Regression Analysis in the book.
Learning Curves
Learning curves describe the fact that the more experience people have with something, the more efficient they become in doing that task. Learning curves are used to develop forecasts and also for pricing bids. You will need to know how to calculate the cost of units after learning has taken place.
The class recording file 13 – Learning Curves from the Section A Class Recordings should be listened to after reading Learning Curves in the book.
Probability
Probability gives us a means of measuring numerically how likely it is that an event will occur. Probability is used in forecasting and budgeting to create an expected value for an element that needs to be forecasted, such as future cash flows. The expected value is used in the budget. The concepts of variance and standard deviation are part of the study of probability, as they are a means of measuring the variability that could take place in the value being forecasted.
This topic is combined with the next topic, Risk, Uncertainty and Expected Value, in the class recordings. The relevant recordings are given following the next topic.
Risk, Uncertainty and Expected Value
You will see the concept of standard deviation again in this topic. This topic deals with methods to obtain a recommended decision alternative or an optimal strategy for the purpose of planning and budgeting.
The class recording files 14 – Probability through 15 – Probability Questions from the Section A Class Recordings should be listened to after reading the topics of Probability through and including Risk, Uncertainty and Expected Value in the book.
CMA Part 1 Study Plan Unit 1: 3 Weeks Section A – Planning, Budgeting and Forecasting EgCMA ♦ www.egcma.com ♦ EgCMA Page 3
Sensitivity Analysis
This is a very small topic with only a few questions, and it is necessary to understand it only from a conceptual standpoint. Sensitivity analysis involves selecting different values for the various probabilities and payoffs in a model, and changing them one at a time to determine whether the recommended decision alternative changes as a result, and by how much.
The class recording file 16 – Sensitivity Analysis from the Section A Class Recordings should be listened to after reading the topic of Sensitivity Analysis in the book.
Top-Level Planning and Analysis
This section discusses how to make use of the planning and forecasting techniques that preceded it in developing pro forma financial statements for use in planning and decision-making. Top-level planning makes extensive use of pro forma financial statements, and this topic discusses and illustrates how to construct them and how to analyze them for the purpose of making decisions.
The class recording file 17 – Top Level Planning from the Section A Class Recordings should be listened to after reading the topic of Top Level Planning and Analysis in the book.
Practice Essay Questions
After you have completed Section A, open the Practice Essay Questions posted in My Studies on the EGCMA website. Answer Question #1, Cash Budgeting. You will also find a group of Supplemental Problems on your My Studies download page, organized according to section. The Section A problems are relevant to this section.
Review of Section A
If you have had particular difficulty with a topic or more than one topic in this section, review that topic by creating a Study Session in Exam Success consisting of questions from just that topic or those topics. In addition to doing that, you should review specifically all the topics in Section A by creating at least one Study Session consisting of 50 questions from the entire group of Section A – Planning, Budgeting and Forecasting questions.
CMA Part 1 Study Plan Unit 1: 3 Weeks Section A – Planning, Budgeting and Forecasting EgCMA ♦ www.egcma.com ♦ EgCMA Page 4
Administrative Task: If this is your first exam, be sure to become a member of the IMA and pay your certification entrance fee. You need to be a member of the IMA and pay the certification entrance fee before you will be able to register for any specific exam. The processing of your membership application will take some time, so you should do that right away.
The certification fee may be paid along with your membership application, or it may be paid when you register for your first exam. Your certification entrance fee will give you access to the IMA’s CMA Support Package and to other preparation resources from the IMA, so there are advantages to paying it before you begin studying. On the other hand, some people may prefer to wait to pay the certification entrance fee until they register for their first exam, because the certification entrance fee is valid for three years. If you have not passed both exams within three years of paying the fee, you must pay the fee again. So you should consider the advantages of paying the certification entrance fee in advance and getting access to the resources versus waiting until you register for your first exam and having a little more time to complete your exams without having to pay the fee again.
Before you will be able to schedule your exam appointment, you will need to register with the ICMA for the exam and wait to receive your authorization number. You should keep the necessary lead-time in mind when you register for the exam. The ICMA states that they process exam registrations within 3 to 4 business days, and then send the authorization number out by the U.S. Postal Service. Therefore, it could take 1-2 weeks for persons in the U.S. to receive their authorization number after registering, and much longer for persons outside the U.S. After you have registered, you can also send an email to the IMA at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. and ask them to send your authorization number to you by email so that you can get it sooner.
Your exam registration will authorize you to take the exam within the next two-month testing window. The testing windows are January-February, May-June, and September-October. Registrations for Part 1 received on or after February 1st, June 1st, or October 1st will be registered for the following testing window.
The ICMA recommends that you register at least 6 weeks before your desired testing date to insure your first choice of date, time, and location. You will need 1-2 weeks for your registration to be processed and then 4 weeks to schedule your exam appointment. However, do not register too soon, or you may find yourself appearing for the exam before you are prepared for it.

CMA Part 1 Study Plan Unit 2: 3 weeks Section C – Cost Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 5
We recommend that you study Section C before attempting Section B in your textbook. We have organized the book the way the ICMA’s Content Specification Outline and Learning Outcome Statements are organized. But we recognize that the material covered in Section B will be much easier for you if you have first learned some of the concepts covered in Section C.
Section C is a large section and so these three weeks are broken up into smaller sections below. How much time you spend on each smaller part depends on your background and experience. However, you should try to complete this Section in no more than 3 weeks.
Exam Success
After completing the reading and the questions in the book for each of the topics below, open your Exam Success study software. You will find a separate classification of questions for each of the topics below. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success. When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.
The topics in the Section C – Cost Management are:
Classifications of Costs
The topic of the different types of costs (especially fixed and variable) is one that will continue through some of the other topics in this Section and Exam. You need to be com-fortable with the behaviors of the different costs as well as terms such as product cost, period cost, prime cost, conversion cost, and what is included in each of these. There will be word questions about these costs, what they are made up of and how they behave. If you have this knowledge, these questions will be easily and quickly done.
The class recording files 01 – Intro to Costs and 02 – Costs Part 2 from the Section C Class Recordings should be listened to after reading Classifications of Costs through and including Cost of Goods Sold (COGS) and Cost of Goods Manufactured (COGM) in the book.
Variable and Absorption Costing
Though this topic does not take up a lot of pages in the material, it is an important one. It includes two ways of presenting an income statement, but they differ in only one area. Under variable costing, the fixed manufacturing overheads are expensed in the period that they are incurred. Under absorption costing, these same costs are allocated to the units that are produced during the period. These two methods give different levels of net income when inventory changes during the period.
If the inventory levels increase during the period, the absorption method will give a higher income because some of the period’s fixed manufacturing overheads are on the balance

CMA Part 1 Study Plan Unit 2: 3 weeks Section C – Cost Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 6
sheet in inventory. If the inventory level falls during the period, the variable method gives a higher net income because under the variable method, only fixed factory overheads incurred during the year are included as an expense in the period. In contrast, under the absorption method, some of the fixed factory overhead costs that had been inventoried in previous years will now be expensed in the current period; and this amount will be greater than the fixed factory overheads that will be on the balance sheet as inventory at year end, since the inventory level has dropped during the period.
You will need to remember that this is the only difference and be able to calculate the level of income under both methods. You should also be familiar with the presentation of the income statement under both methods.
Finally, you will need to know that the absorption method is required for external reporting under U.S. GAAP, but the variable method may be used for internal analysis.
The class recording file 03 – Variable and Absorption Costing from the Section C Class Recordings should be listened to after reading Variable and Absorption Costing and answer-ing the questions in your book on Variable and Absorption Costing.
Joint Products and By-Products
These topics are smaller topics but you will need to understand their key elements.
An important concept in this section that gives some people trouble is the ideas of Net Realizable Value and Estimated Net Realizable Value. When the Net Realizable Value method is used to allocate costs between or among joint products, if a product can be sold at the splitoff point, its sales price at the splitoff point is its Net Realizable Value. If a product cannot be sold at the splitoff point, its Estimated Net Realizable Value is calculated based on the product’s future sales price minus its separable costs, and that is used as its NRV. In a single cost allocation, you may have some products for which you will use their sales price at splitoff as their NRV and some products for which you will use their Estimated Net Realizable Value as their NRV.
The class recording file 04 – Joint Products and Byproducts from the Section C Class Recordings should be listened to after reading Joint Products and Byproducts and answer-ing the questions in your book on Joint Products and Byproducts. Note: The review in the class recording of the Pineapple Co. example of the Constant Gross Profit (Gross Margin) Percentage method differs slightly from the example in the book, because the example in the book was changed after the class recording was recorded. Until that class recording is re-recorded, the difference will continue to be there.
Process Costing
Process costing is a topic that often becomes troublesome for people. We have tried to remedy this by including in the materials a seven-step process to help you complete a full process-costing question. We also provide two diagrams for the two methods used in process costing (FIFO and the weighted average methods), along with complete examples for both methods.
CMA Part 1 Study Plan Unit 2: 3 weeks Section C – Cost Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 7
In process costing, you need to be able to calculate the equivalent units of production (EUPs) for both conversion costs and materials. Even if you can’t do anything else in process costing, make sure that you can calculate the equivalent units of production, as this will very likely be tested. You also need to understand the difference between the FIFO and the weighted average methods, remembering that the only difference is in the treat-ment of beginning WIP.
This section also introduces the concept of spoilage, both normal and abnormal. You must be able to calculate the number of normally spoiled units and the number of abnormally spoiled units. However, if you have trouble with the allocation of costs to the spoiled units, don’t be too worried because if this is tested, it will probably be only one, maybe two, questions. In any case, the allocation of costs to the spoiled units is not a heavily or com-monly tested item.
The class recording files 05 – Process Costing Introduction through 09 – Process Costing Questions from the Section C Class Recordings should be listened to after reading Process Costing and answering the questions in your book on Process Costing.
Overhead Allocation
For the topic of overhead allocation, you will need to make certain that you understand the method of setting standard costs and the allocation of the overheads to the individual units. Also, spend some time ensuring that you can quickly identify the over- or under-applied overhead for the company and the treatment for this amount.
The class recording files 10 – Overhead Allocation through 12 – Overhead Questions from the Section C Class Recordings should be listened to after reading Overhead Allocation through the Comprehensive Example of Accounting for Fixed Overhead and FOH Variances and answering the questions in your book that follow that example.
Activity Based Costing
Activity Based Costing (ABC) is a subject that in reality can take a long time to discuss and implement. However, on the exam, ABC is tested in a slightly smaller scope. A numerical ABC question will possibly require you to compare ABC to the traditional method of over-head allocation. You will be given instructions about how to allocate under the traditional method, and the ABC method is nothing more than applying the traditional method three or four times to the same data. You will also need to be certain to understand the idea behind ABC, the related terminology and the benefits.
The class recording files 13 – ABC and 14 – ABC Questions from the Section C Class Re-cordings should be listened to after reading Activity Based Costing and answering the questions in your book that follow that topic.
CMA Part 1 Study Plan Unit 2: 3 weeks Section C – Cost Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 8
Job Order Costing and Life-Cycle Costing
Job order costing is used when there are specific and identifiable jobs or projects that are worked on during the period. In life-cycle costing, the company attempts to allocate to each product all of the research and development, marketing, development, after-sale service costs and any other cost that is associated with this product during its life cycle.
The class recording files 15 – Job Order Costing and 16 – Life Cycle Costing from the Section C Class Recordings should be listened to after reading Job Order Costing and Life Cycle Costing in your book.
Service Cost Allocation
Service department cost allocation is a largely mathematical process and you will need to be able to make the allocations under all three methods, and also understand how these methods treat the costs of services provided to other service departments.
The class recording files 17 – Service Cost Allocation Part 1 and 18 – Service Cost Alloca-tion Part 2 from the Section C Class Recordings should be listened to after reading Service Cost Allocation and answering the questions in your book that follow that topic.
Estimating Fixed Costs
Sometimes costs are mixed costs or the fixed costs are not segregated from the variable costs in the historical information available. For forecasting purposes, it is necessary to be able to separate costs into their fixed and variable components. This topic discusses two ways of doing that: the High-Low Points Method and Regression Analysis.
There are no class recordings for the topic of Estimating Fixed Costs.
Operational Efficiency
Manufacturing systems such as Just-in-Time (JIT) inventory management, kanban, MRP (materials requirements or material resource planning), and TOC (theory of constraints) are covered, along with discussions on outsourcing and capacity level and management decisions.
The class recording files 19 – JIT Inventory through 22 – Theory of Constraints should be listened to after reading the Operational Efficiency topics through Capacity Level and its Effect on Financial Statements and the comprehensive example that follows that topic; and answering the problems throughout that portion of the book. CMA Part 1 Study Plan Unit 2: 3 weeks Section C – Cost Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 9
Business Process Performance
In this topic we cover the concepts of the value chain and value chain analysis, business process reengineering, benchmarking, activity based management, kaizen, and quality and the costs of quality.
The class recording files 23 – The Value Chain through 25 – Quality from the Section C Class Recordings should be listened to after reading the Business Process Performance topics through the end of Section C, including answering the questions throughout that portion of the book.
Practice Essay Questions
After you have completed Section C, open the Practice Essay Questions posted in My Studies on the EGCMA website. Answer Question #3, Budgeting and Costing. You will also find a group of Supplemental Problems on your My Studies download page, organized according to section. The Section C problems are relevant to this section.
Review of Section C
If you have had particular difficulty with a topic or more than one topic in this section, review that topic by creating a Study Session in Exam Success consisting of questions from just that topic or those topics.
We recommend that you periodically review all of the topics you have studied to date by creating a Study Session in Exam Success consisting of some questions from all of the topics you have studied. In addition to doing that, you should review specifically the topics in Section C by creating at least one Study Session consisting of 50 questions from the entire group of Section C – Cost Management questions.
CMA Part 1 Study Plan Unit 3: 2 weeks Section B – Performance Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 10
This section has three main topics within it: Variance Analysis, Responsibility Centers and Reporting Segments, and Performance Measurement.
The class recording file 01 – Section B Introduction from the Section B Class Recordings should be listened to after reading the Introduction to Section B, Performance Management, in the book.
Exam Success
After completing the reading and the questions in the book for each of the topics below, open your Exam Success study software. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success. When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.
Variance Analysis
Variance analysis is a section that causes trouble for many people, especially those who have not studied it previously. Though this is a topic that seems to have a lot of formulas at first glance, it is really not that bad. The formulas are mostly just variations on two formulas that are used for the different variances. You will need to be certain that you can calculate the numerical formulas and that you also know what the variances mean, how they are used and what can cause the variances. The word questions on this topic should be easy, but only if you understand what the variance is really telling you.
The topics in the Variance Analysis portion of Section B are:
Introduction to Variance Analysis and Standard Costs
You will need to understand the concept of standard costs and their use in controlling production.
The class recording file 02 – Variance Analysis Introduction from the Section B Class Recordings should be listened to after reading the Introduction to Variance Analysis and Standard Costs and the subtopics that follow it in the book.
CMA Part 1 Study Plan Unit 3: 2 weeks Section B – Performance Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 11
Variance Analysis Concepts
This is an introduction to variance analysis. It goes into flexible budget variances versus static budget variances. You need to know that the sales volume variance is the difference between the flexible budget amount and the static budget amount.
The class recording file 03 – Variance Analysis from the Section B Class Recordings should be listened to after reading Variance Analysis Concepts and the subtopics that follow it in the book.
Manufacturing Input Variances – Materials and Labor
Manufacturing input variances are concerned with inputs to the manufacturing process and whether the amount of inputs used per unit manufactured was over or under the standard or whether they cost more or less per unit than the standard, and what the cost impact was of each type of variance. Manufacturing input variances are used in controlling produc-tion. You will need to memorize the two basic variance formulas, the price variance formula and the quantity variance formula, and know when and how to use them.
The class recording files 04 – Direct Materials Variance through 08 – More Than One Input from the Section B Class Recordings should be listened to after reading Direct Materials Variances, Direct Labor Variances, and More Than One Material Input or One Labor Class in the book.
Manufacturing Input Variances – Factory Overhead
The topic of overhead variances appears much more complicated than it is. In order to understand overhead variances, it helps to have a good understanding of how overhead is accounted for and how it is allocated to units produced. That is covered in Section C, Cost Management, in your book. If you are progressing through this study plan in the recom-mended manner, you will have studied Section C before studying this section. You might find it helpful to reread the topic of “Overhead Allocation” in Section C before moving into the topic of overhead variances. An understanding of how factory overhead is accounted for is essential for understanding overhead variances. You will need to memorize the formulas for these items, including how they are combined in the different methods of analysis, such as two-way, three-way and four-way analysis.
The class recording files 09 – Overhead Variances and 10 – Overhead Variances Questions from the Section B Class Recordings should be listened to after reading Factory Overhead Variances in the book.
CMA Part 1 Study Plan Unit 3: 2 weeks Section B – Performance Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 12
Sales and Market Variances and Variance Analysis for a Service Company
Sales variances are used to explain the differences between actual and budgeted amounts of revenue, variable costs, and contribution margin caused by differences between actual sales results and planned or budgeted sales results. They are different from manufacturing input variances because they are related to units sold, not units produced. However, the concept is the same. They use the same price variance and quantity variance formulas as the manufacturing input variances do.
The class recording files 11 – Sales Variances Introduction through 13 – Market Variances from the Section B Class Recordings should be listened to after reading Sales Variances, Market Variances and Variance Analysis for a Service Company in the book.
Responsibility Centers and Reporting Segments
Responsibility accounting includes the different types of centers (cost, revenue, profit and investment) and you will need to know what these are, how they are different from each other and how they are evaluated. This section also discusses the costs that are controllable by a manager and separates them from those that are not. In short, a manager should not be evaluated based on something over which he or she has little, if any, control.
The contribution income statement takes the costs that are incurred and splits them into those costs that are controllable and those that are not. By subtracting the controllable costs (both variable and fixed), we get segment manager performance. The further subtraction of noncontrollable, traceable fixed costs gives us segment margin. You will need to know the different steps in this income statement.
The class recording files 14 – Responsibility Centers through 18 – Transfer Pricing Ques-tions from the Section B Class Recordings should be listened to after reading Responsibility Centers and Reporting Segments in the book.
Exam Success
All of the Exam Success questions for Responsibility Centers and Reporting Segments are in a single category. After completing the reading and the questions in the book for the topic of Responsibility Centers and Reporting Segments, open your Exam Success study software. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success. When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.
CMA Part 1 Study Plan Unit 3: 2 weeks Section B – Performance Management EgCMA ♦ www.egcma.com ♦ EgCMA Page 13
Performance Measurement and Performance Feedback
As part of performance measurement, you will need to be familiar with two calculations: return on investment and residual income. You need to be able to calculate these items and also understand what they indicate and how to use them.
The class recording files 19 – Performance Measures and 20 – Performance Measures Part 2 from the Section B Class Recordings should be listened to after reading Performance Measures through and including Performance Measurement in Multinational Companies and Foreign Currency Calculation of ROI in the book.
The class recording file 21 – Balanced Scorecard from the Section B Class Recordings should be listened to after reading Multiple Measures of Performance and the Balanced Scorecard in the book.
Exam Success
All of the Exam Success questions for Performance Measures are in a single category. After completing the reading and the questions in the book for the topic of Performance Measures, open your Exam Success study software. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success. When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.
Practice Essay Questions
After you have completed Section B, open the Practice Essay Questions posted in My Studies on the EGCMA website. Answer Question #2, Performance Report. You will also find a group of Supplemental Problems on your My Studies download page, organized according to section. The Section B problems are relevant to this section.
Review of Section B
If you have had particular difficulty with a topic or more than one topic in this section, review that topic by creating a Study Session in Exam Success consisting of questions from just that topic or those topics.
We recommend that you periodically review all of the topics you have studied to date by creating a Study Session in Exam Success consisting of some questions from all of the topics you have studied. In addition to doing that, you should review specifically the topics in Section B by creating at least one Study Session consisting of 50 questions from the entire group of Section B – Performance Management questions.
CMA Part 1 Study Plan Unit 4: 2 weeks Section D – Internal Controls EgCMA ♦ www.egcma.com ♦ EgCMA Page 14
Internal Controls is not a numerical section. Rather, this is a theoretical section that relates to internal controls and internal audit.
In the part on internal controls, you need to make certain that you understand the concept of the segregation of duties. You will probably need to know it from both a theoretical standpoint as well as in application. The application questions are difficult to prepare for because there are so many possible situations that can be created. If you get a question that asks who should not do what two jobs or something similar, make a best assessment of the question, answer it and move on. If you think additional time considering it would be useful, you can mark the answer and come back to it later, but do not spend a great deal of time on this question.
In the internal audit section you need to be familiar with the general concepts and ideas that are central to internal audit. This includes the type of work that is performed by internal auditors as well as their place in the organization.
This section also covers the internal control issues related to computer systems. You need to be familiar with the specific terminology and issues of information systems.
Exam Success
After completing the reading and the questions in the book for each of the topics below, open your Exam Success study software. You will find a separate classification of questions for each of the topics below. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success. When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.
The topics in the Section D – Internal Controls are:
Risk Assessment, Controls and Risk Management
This section covers the basics of internal control as set forth in the COSO document, Internal Control – Integrated Framework. Corporate governance is discussed as well as legislative initiatives that impact companies’ internal control processes. In particular, the PCAOB’s Auditing Standard No. 5 for auditing internal controls and the guidance for man-agement contained in SEC Release 33-8810 are discussed in depth.
The class recording files 01 – IC Intro and Components and 02 – Components of IC from the Section D Class Recordings should be listened to after reading Internal Control Defini-tion and Objectives through and including Components of Internal Control in the book.
The class recording file 03 – Segregation of Duties from the Section D Class Recordings should be listened to after reading Segregation of Duties in the book and answering the questions that follow
CMA Part 1 Study Plan Unit 4: 2 weeks Section D – Internal Controls EgCMA ♦ www.egcma.com ♦ EgCMA Page 15
The class recording file 04 – Board, Audit Committee and FCPA from the Section D Class Recordings should be listened to after reading Responsibilities of the Board of Directors through and including Foreign Corrupt Practices Act (FCPA) in the book.
The class recording file 05 – Sarbanes-Oxley from the Section D Class Recordings should be listened to after reading Sarbanes-Oxley Act through and including What Internal Control Can and Cannot Do in the book.
Internal Auditing
The functions of the internal audit activity are discussed.
The class recording file 06 – Internal Audit from the Section D Class Recordings should be listened to after reading Definition of Internal Auditing through and including Coordination of Work Between Internal and External Auditors in the book.
The class recording file 07 – Internal Audit Engagements from the Section D Class Record-ings should be listened to after reading Types of Engagements in the book.
The class recording file 08 – The Audit Process from the Section D Class Recordings should be listened to after reading The Auditing Process through and including Planning the Audit in the book and answering the questions that follow.
The class recording file 09 – Understanding IC in the Audit from the Section D Class Re-cordings should be listened to after reading Understanding Internal Controls in the Planning of the Audit through and including The Internal Audit Program in the book and answering the questions.
The class recording file 10 – Audit Evidence from the Section D Class Recordings should be listened to after reading Audit Evidence in the book and answering the questions that follow.
The class recording file 11 – Audits of Financial Controls from the Section D Class Record-ings should be listened to after reading Audits of Financial Controls and Types of Controls in the book and answering the questions that follow.
The class recording file 12 – Accounting and Administrative Controls from the Section D Class Recordings should be listened to after reading Accounting Controls Versus Adminis-trative Controls through and including Control Breakdowns.
The class recording file 13 – Fraud Audits from the Section D Class Recordings should be listened to after reading Detection and Prevention of Fraud and Consideration of Fraud in the Planning of a Financial Statement Audit in the book and answering the questions that follow.
The class recording file 14 – Audit Reports from the Section D Class Recordings should be listened to after reading Internal Audit Reports through and including Auditor Follow Up in the book and answering the question that follows.
CMA Part 1 Study Plan Unit 4: 2 weeks Section D – Internal Controls EgCMA ♦ www.egcma.com ♦ EgCMA Page 16
Systems Control and Security Measures
Computer processing of data presents unique control challenges. This section discusses those challenges and means of addressing them. Internet security and contingency plan-ning are also included in this topic.
There are no class recordings for this topic.
Practice Essay Questions
After you have completed Section D, open the Practice Essay Questions posted in My Studies on the EGCMA website. Answer Question #4, Internal Audit.
You will also find a group of Supplemental Problems on your My Studies download page, organized according to section. There is a link there for Section D-E. Do not attempt this until you have completed Section E, as it contains elements from both sections.
Review of Section D
If you have had particular difficulty with a topic or more than one topic in this section, review that topic by creating a Study Session in Exam Success consisting of questions from just that topic or those topics.
We recommend that you periodically review all of the topics you have studied to date by creating a Study Session in Exam Success consisting of some questions from all of the topics you have studied. In addition to doing that, you should review specifically the topics in Section D by creating at least one Study Session consisting of 50 questions from the entire group of Section D – Internal Controls questions.
CMA Part 1 Study Plan Unit 5: 1 week Section E – Professional Ethics EgCMA ♦ www.egcma.com ♦ EgCMA Page 17
In the Professional Ethics section, you will find the IMA’s Statement of Ethical Professional Practice in its entirety. You will need to know this statement very well in order to be able to quote the relevant portion(s) of it and be able to apply it to the situation presented by giving the specifics of actions to be taken. This will need to be very explicit; ethics is not a topic that you can bluff your way through. And paraphrasing a principle or standard is not adequate. You should have the principles and standards memorized. Ethical considerations could also be integrated with any question on any topic.
Exam Success
After completing the reading in the book, open your Exam Success study software and answer the questions on Ethics.
The class recording file 01 – Ethics from the Section E Class Recordings should be listened to after reading Section E in the book.
Practice Essay Questions
After you have completed Section E, open the Practice Essay Questions posted in My Studies on the EGCMA website. Answer Question #5, Ethics. You will also find a group of Supplemental Problems on your My Studies download page, organized according to section. The Section D-E problems are relevant to this section as well as to the previous section.
CMA Part 1 Study Plan Unit 6: 3 weeks Review EgCMA ♦ www.egcma.com ♦ EgCMA Page 18
Prior to your exam and after you have completed studying, you will want to at least skim through the entire material one more time. While doing this, you won’t want to focus on any individual idea or topic or try to memorize the formulas. Simply make certain that you are familiar with all of the topics, both large and small, and refresh your memory as to the key terms and ideas.
After you skim through the materials, you will want to focus on the main topics, which are identified in the Section Overviews.
If you have not been using them up to this point, now is a good time to use the flash cards. The flash cards do not cover every little detail in the materials, but they address the main topics, definitions and formulas that are most likely to be tested. Get out the flash cards whenever you can, even for a few minutes. Use them to drill on any formulas you need to memorize.
The past CMA exam problems distributed by the IMA to candidates are also a very good final study tool. If you do not have these, you can get them from the IMA. You may have done some of these during your study, but you can go back over them again as a review. Remember that there are no problems like these on the actual Part 1 exam that you will take, but after these, the multiple-choice questions on the exam will be that much easier.
After you have completed your review, you will be prepared to take the Part 1 Mock Exam. Please send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it. requesting the mock exam, as well as which exam part you would like to receive, and the exam will be sent to you by e-mail.
During the final week or two before your exam, create several Exam Simulations in Exam Success. Each of these Exam Simulations will contain 100 multiple choice questions selected randomly from the entire question base in approximately the same distribution as the questions will be on the real exam. For example, if a particular major section will account for 25% of the questions on the real exam, 25% of the questions on the simulation exam will also come from that section. The simulation exams will be timed for 3 hours, so set aside a three-hour period when you will not be interrupted for taking each test. You need to become accustomed to sitting for three hours in one place and answering multiple choice questions on the computer. The actual exam will be a four-hour exam and will consist of 100 multiple choice questions and two essay questions.
Also, use this as an opportunity to practice your time management skills. The exam simulation works the same way as the Prometric exam will work. You can use the keyboard instead of the mouse to select your answer and move to the next question by hitting the key for the letter that corresponds to your answer choice and then hitting Alt-N to move to the next question. This may save you a few seconds on each question.
And as always, if you have any questions at all, contact the EGCMA team and we will be happy to help you.

Dear CMA PART 2 Candidate,
Studying for and passing the CMA Exams is a mission that requires dedication and hard work. From our experience at EgCMA, we know that planning makes this process much easier. Because the exam is available throughout the year and there is no date by which you need to be prepared, studying can seem endless without a proper plan. We know it is easy to “put things off until tomorrow.” However, you cannot afford to do that. Under the guidelines for the exams introduced in 2010, if you do not register for an exam within 12 months of entering the program, you will be required to pay the entrance fee again. And you will be required to complete the program within three years from entry into the program.
We beieve that you will find studying easier and less time consuming if you have a solid plan that targets passing the Part 2 Exam within three to four months after you begin studying. Set out below is a 15-week plan, studying 8 to 10 hours per week. This is simply a guide based on the expected amount of study time for a person with some financial background who is familiar with the basic exam concepts.
As you go through your schedule, you may find yourself getting ahead or somewhat behind due to changes in your work or personal commitments. This does not matter. Each person should study at his or her own pace and feel comfortable with the study process and time required to prepare for the exams.
While studying, there are sure to be topics that are not clear to you and perhaps some that you find incredibly difficult. When encountering these topics, you can always contact WWW.EgCMA.COM and we will help you as much as possible.
Also, keep in mind that you do not need to have 100% knowledge of 100% of the exam content in order to pass. At certain points you will need to decide whether the extra time spent learning something is worth the extra knowledge gained. When in doubt about what to do, contact us and we will guide you.
I wish you great success in your studies and look forward to helping you pass the exams.
Sincerely,
Gamil Mohamed, CPA, ESAA
President and CEO
November 2010

2010 CMA Part 2 Study Plan Unit 1: 3 Weeks Section A – Financial Statement Analysis
Section A contains three major topics: Basic Financial Statement Analysis, Ratios, and Analytical Issues in Financial Accounting. As you read these topics, you will find questions within the reading. The correct answers to the questions appear at the end of the book.
Basic Financial Statement Analysis covers the Statement of Financial Position (Balance Sheet), the Statement of Earnings (Income Statement), Statement of Cash Flows, and the Statement of Changes in Shareholders’ Equity. For the Statement of Cash Flows, make sure you understand the difference between the direct and the indirect method. For the Balance Sheet and Income Statement, you need to know how to prepare and analyze common-size financial statements and common base year financial statements.
Your study of Ratios and other calculations used in financial statement analysis will require you to memorize all of the different ratios, the way they are calculated and what they are used for and measure. But that is not all. It is important to understand not only how to calculate the ratios, but also how to interpret them.
The Statement of Cash Flows is so important in this exam that you will see it again in the topic of Analytical Issues in Financial Accounting. Here, you need to know how to prepare a Statement of Cash Flows using the indirect method. Additional topics cover the impact on financial ratios of various events, transactions, management decisions and financial reporting choices.
Exam Success
After completing the reading and the questions in the book for each of the topics below, open your Exam Success study software. Create and complete a Study Session in Exam Success consisting of all of the questions in that topic in Exam Success.
Note that the default number of questions is ½ of the total number of questions. We recommend when you set up a study session that you change the default number to the maximum number of the questions that are available. You do not have to complete all of the questions in a study session at one sitting. You can close out a session without grading it, and then you can re-open it again and work on it more later by simply clicking on “Resume/Manage Sessions” on the first screen that comes up when you open the program.
When you have completed the Study Session and scored it, re-study all questions missed by looking up in the book the topics missed and creating a new Study Session from all incorrectly answered questions.
It is very important to use your Exam Success software as you are progressing through the book. Do not let it go until you have read the whole book. Exam Success gives you an opportunity to put into practice the concepts you have been reading about. Practice is very important for learning.
As you work through the book, periodically stop and create a Study Session of 50 questions drawn from all the topics you have studied to date. This will keep you fresh on the topics you studied earlier so you do not forget the material.

2010 CMA Part 2 Study Plan Unit 1: 3 Weeks Section A – Financial Statement Analysis EGCMA ♦ www.EgCMA.com Page 2
Several of the topics in Section A will require you to have a good understanding of financial accounting and external financial reporting. If you need to review this, refer to Volume 2 of the EGCMA Assumed Knowledge e-book or to accounting textbooks. If you use textbooks, you will probably need both an intermediate and an advanced accounting textbook. The EGCMA Assumed Knowledge e-book is free with the purchase of study materials for both CMA exam parts, or it is available for purchase by those who do not purchase both study materials parts.
The Exam Success topics in Section A, Financial Statement Analysis, are:
• Basic Financial Statement Analysis
• Ratios
• Analytical Issues in Financial Accounting
The questions in Exam Success on Ratios are divided into two broad groups:
1) Liquidity Ratios, Leverage Ratios, Coverage Ratios and Activity Ratios; and
2) Profitability Ratios,Market Ratios and Profitability Analysis.
Because the questions in Exam Success are grouped the way they are, you should study liquidity, leverage, coverage and activity ratios in your book and then complete the Exam Success questions on those ratios. Then, study profitability ratios, market ratios, and profitability analysis in your book and complete the Exam Success questions on those topics.
Practice Essay Questions
You will find a group of Supplemental Problems on your My Studies download page, organized according to section. The Section A problems are relevant to this section.
Review of Section A
If you have had particular difficulty with a topic or more than one topic in this section, review that topic by creating a Study Session in Exam Success consisting of questions from just that topic or those topics. In addition to doing that, you should review specifically all the topics in Section A by creating at least one Study Session consisting of 50 questions from the entire group of Section A – Financial Statemen