Wiley 2015

The CMA Exam

Handbook
Essential Insights For Anyone
Considering CMA Certification
By Wiley CMAexcel

Covered In This eBook

What A Career In Management Accounting Looks Like 2
The CMA Certification And Who Its For 4
Why A CPA License Isnt The Right Choice For Everyone 7
A Step-By-Step Guide to CMA Exam Procedures & Registration 8
Understanding How The CMA Exam Is Scored 11
Still Not Convinced? Hear From Some New CMAs 13
Thinking About It? 13

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What A Career
In Management
Accounting
Looks Like

Management Accounting is a varied and growing profession that, at its core,

involvesusing specialized accounting expertise to assist in management decision-making
and planning.
Sounds great, but what does a career in management accounting looklike?

A Focus On Strategy & Decision Support

While other areas of accounting are focused on financial auditing and reporting or investments, management
accounting serves a central strategic role for businesses. According to theInstitute of Management Accountants (IMA),
thats because management accountants have specialized skills in financial planning, analysis, control, decision
support and professional ethics.
Certified Management Accountants (CMAs) contribute to the success of a business in a number of unique ways.
Theycan:
Advise managers about the financial implications of projects.
Explain the financial consequences of business decisions.
Formulate business strategies.
Monitor spending and financial controls.
Conduct internal business audits.
Explain the impact of the competitive landscape.
And much more
Above all, CMAs bring a high level of professionalism and integrity to business, as demonstratedby their certification
and IMA membership.

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A Variety Of Respected Job Roles
Being a CMA affords you a wealth of career opportunities. Management accountants work as cost accountants, budget
analysts, internal auditors or financial analysts inside an organization.
They may advance to positions such as accounting manager, chief cost accountant, budget director, or manager of
internal auditing.
Some become controllers, treasurers, financial vice presidents, chief financial officers or corporate presidents. Many
senior corporate executives have backgrounds in accounting, internal auditing or finance.
The possibilities are virtually endless.

Management Accounting v. Financial Accounting

Heres a helpful table to help you understand the key differences between the Management Accounting and Financial
Accounting fields.

Management Accounting Financial Accounting

Purpose of information Help managers to make decisions Communicate financial
position to outsiders
Primary users Internal managers External users: investors, creditors,
government/authorities
Time dimension Current and forward-looking Mainly historical
Nature of the information Financial and non-financial Mostly financial
Reporting frequency As & when desired by management Generally at the end of the year
Information recorded Accounts are prepared to meet Kept voluntarily to meet the
the legal requirements requirements of management
Control Information is supervised Information is typically supervised
by internal auditors by public auditors.

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The CMA
Certification
And Who Its For

Most accounting qualifications train people for private practice, working on external audit
and tax issues.Certified Management Accountants (CMAs), however, are qualified to work
across an organisation, not just in auditing or finance.
Since first being offeredin 1972, the CMA certification has become thestandard for excellence in the field
ofmanagement accounting. With more than 40,000 CMAsglobally, the credential ishighly valued and respected by
top employers.
Thats because, according to theInstitute of Management Accountants(IMA), the CMA certificationdemonstrates your
command of the critical accounting and financial management skills, including:
Financial planning
Analysis
Control
Decision Support
Professional Ethics

Who Is The CMA Certification Right For?

Whether you want to enhance the value you bring to your current position, or expand your career potential, the
CMA certification will help you advance your career in management accounting. However, it may not be useful for
professionals interested solely in auditing and attestation.
From the United States to the Middle East, CMA-holders enjoy significantly higher compensation on average than their
non-certified peers.

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This graphic from the IMAs 2015 salary survey shows the average and median compensation for CMAs
throughout the world.

Compensation Comparison by Region and Country

Annual Base Salary Annual Total Compensation
Region/Country Mean Median Mean Median
All Countries $72,298 $60,000 $89,082 $66,000
Americas $106,972 $96,400 $134,439 $110,000
U.S. $110,570 $100,000 $139,396 $113,000
Canada $94,783 $80,000 $117,395 $90,000
Asia $42,426 $27,000 $51,968 $32,000
China $39,310 $25,000 $48,433 $30,000
India $32,938 $18,000 $38,659 $23,000
Europe $114,299 $77,000 $135,211 $86,500
Germany $84,504 $70,000 $105,414 $85,000
Netherlands $193,092 $100,000 $213,190 $102,033
Russia $61,444 $52,000 $75,443 $65,000
Switzerland $182,525 $164,000 $234,286 $192,500
Turkey $66,639 $54,000 $78,949 $60,000
Middle East/Africa $49,767 $35,000 $60,032 $40,030
Bahrain $44,779 $30,210 $55,944 $42,660
Egypt $16,304 $6,829 $20,261 $9,379
Jordan $30,071 $17,250 $34,633 $18,750
KSA $52,363 $37,040 $66,561 $45,105
Kuwait $44,152 $35,000 $50,102 $39,000
Lebanon $34,340 $24,000 $42,397 $26,400
Qatar $68,176 $56,000 $86,570 $64,000
UAE $61,768 $48,000 $72,082 $54,000
Note: All monetary values are in U.S. dollar equivalents as of the time of the survey.

Major corporations such as 3M, Alcoa, AT&T, Bank of
America, Boeing, Cargill, Caterpillar, ConAgra, Hewlett-
Packard, Johnson & Johnson, Microsoft, Procter &
Gamble, KeyCorp, Whirlpool, Saudi Aramco, Verizon and
Xerox all have CMAs in key management roles.
At Microsoft, we look for a combination of solid
accounting skills, the ability to think strategically, and
strong business ethics. If someone is a CMA, we can be
more comfortable that the person has mastered these
aspects of the profession.
Bob laux, CMA, CPA. Director of Technical Accounting
and Reporting Microsoft Corporation

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Career Networking: IMA Regional Councils & Chapters
The CMA certification extends well beyond the three letters after your name. As part of your IMA membership, you
have access tosome 300 IMA chapters worldwide that provide a forum for networking and professional education. You
can earn NASBA-approved CPE credits, as well as gain access to new leadership opportunities.

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Why A CPA
License Isnt
The Right Choice
For Everyone

Passing the CPA exam is a wonderful accomplishment and will take you far in the world of
public accounting. But interests change and new opportunities arise all the time. Heres
when and why you should consider adding CMA certification
As always, the decision of whether or not you should pursue advanced accounting certifications or credentials should
be made with a clear understanding of where your career is now and where you want to go.
If you are perfectly happy in the public accounting field and are content to focus your work on auditing and financial
reporting, your CPA license (and its ongoing education requirements) should suffice.
However, while the CPA exam is comprehensive in its volume of content, it doesnt prepare you for tackling
management accounting tasks such as financial analysis, cost accounting, risk management, and budgeting and
forecasting.

When To Consider A CMA

You may wish to consider CMA certification for several reasons. For example, youre transitioning from public
accounting to a corporate position or perhaps you want to take on more of a management role at your next job.
A CMA is best suited for you if youre seriously interested in having a credential like the CPA license, but you dont
really need audit and tax skills in your day-to-day work. There are many notable industriesmanufacturing and
logistics, for examplewhere the CMA designation is highly sought after.
In general, CPAs prepare auditing and financial reporting documentation, while CMAs are chiefly responsible for
preparingdata for internal company use.These documents include cash flow statements, balance sheets and income
statements.As a CMA in a large company or firm, youll also likely supervise junior-level accountants who handle
many of these basic accounting tasks. A CMAcan also serve as a lower-cost alternative to earning yourMBA, as youll
learn much of the business math (though none of the managerial strategies) taughtin business school.

Advantages Of Earning Your CMA Now

If you are fresh off your CPA, the CMA Exam will be easier to prepare for, given your familiarity with the CPA ExamsBEC
and FAR sections. Also,the CPE requirements for the certifications should overlap in many areas, reducing your costs
to maintain bothcertifications.

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Getting Started:
A Step-By-Step
Guide to CMA
Exam Procedures
& Registration

Becoming a Certified Management Accountant requires time and effort but the
opportunities for career advancement are worth it. If youre ready to earn your CMA, this
step-by-step guide should get you startedon your way.

First, You Must Meet These Requirements

Maintain membership in the IMA. If you arent a member,join the IMA now.
Hold a bachelors degree from an accredited college or university (or an equivalent degree as determined by an
independent evaluation agency). If you do not have a bachelors degree, you can petition the Board of Regents
for an exceptionif you havesubstantial and relevant professional achievements. Please refer to the Education
Qualification Section of theThe IMAs own CMA Handbook.
At least twocontinuous years of professional experience in management accounting or financial management.
Please refer to the Experience Qualification section of theCMA Handbook.
Entrance into theCMA program.
Complete and pass Parts 1 and 2 of the CMA exam.
Abide by theIMAs Statement of Ethical Professional Practice.

NOTE:IMA has special arrangements with the Institute of Cost Accountants of India and the Association of Chartered
Certified Accountants that may affect the above requirements.
Dont meet the educational or professional experience requirements and want to get certified?There is an
option for every situation. The IMA offers a seven-year grace period for candidates in this situation. You can sit for the
exam and then finish your bachelor degree ortwoyears of professional experience within the next sevenyears from
the date of the exam. Once you do, youll automatically become an active CMA

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Taking The CMA Exam
The CMA exam is broken into two parts, which are both computer-based and administered in hundreds of testing
facilities worldwide. With three two-month testing windows each year, you can sit for an exam part at a time and place
convenient for you.

Examination windows:
Exams are offered only during these two-month periods:
1. January and February
2. May and June
3. September and October

How To Register For the CMA Exam

Follow these easy steps to fulfill the examination requirement foryour CMA certification:
Step 1:Join IMA here.
Step 2:Pay the CMA Entrance Feehere.
Step 3:Register for the examhere.
Step 4:Receive confirmation of your registration, which provides your authorization number(s), testing window(s),
and the Instructions for Candidates.
Step 5:Schedule your exam appointment(s) with Prometric, the IMAs testing partner: www.prometric.com.
Finally, show up for your scheduled exam appointment(s) with the required identification documents.
TIP:Be sure toscheduleyour appointment as soon as possible. Your authorization number is only valid for the testing
window you selected. You cant postpone your exams.
Exams are administered viaPrometric Testing Centers throughout the world and are available in accordance with
local customs. To locate a Testing Center and schedule exam appointments, visitwww.prometric.com/ICMA.

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Exam Fees
Professional Member Fees
Non-refundable CMA Entrance Fee: $240*
Exam Fee: $395 per part
Rescheduling Fee**: $50

Student/AcademicMember Fees
Non-refundable CMA Entrance Fee: $180*
Exam Fee: $296.25 per part
Rescheduling Fee**: $50

Total Cost To Earn Your CMA With No Exam Retakes:

Non-Student/Professional: $1,030
Student (still in school): $772.50

*The CMA Entrance Fee covers:

Credential review for educational qualification
Credential review for experience qualification
Six months access to the CMA Exam Support package which includes printable practice questions
Final Score Report
Performance feedback reports for candidates who do not pass
Personalized, numbered certificate for office display
Congratulatory notification to employer or others, if desired

**You must reschedule your exam more than 30 days prior to your scheduled appointment. You can only move the
date to a late date within the same two-month testing window.

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Understanding
How The CMA
Exam Is Scored

The CMA Exam has a unique scoring system that can sometimes be confusing for
candidates. Heres everything you need to know to correctly interpret your CMA Exam
score.

When Are CMA Exam Scores Released?

Essays are graded offline by the ICMA, the certifying body of the IMA, so do not expect to see your results the day of
your exam. Instead, the ICMA will e-mail your exam results to you approximately six weeks from the end of the month
in which youve taken your test.
At the time grades are released, results are also available online in your Account Profile transcript. Unfortunately, the
ICMA does not share exam scores via telephone.

Exam Window Score Release Window*

January and February 2ndweek of February -1stweek of April
May and June 2ndweek of June 2ndweek of August
September and October 2ndweek of October 2ndweek of December
*Please note there are no official, set score release dates.

How Is The CMA Exam Weighted?

The multiple-choice questions section is worth 75% of the total score.
Essays are worth 25% of the total score.
To be able to take the essay section, you must score at least 50% on the multiple-choice section.

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CMA Exam Scoring Scale
Parts 1 and 2 of the CMA exam are scored on a scale of 0 to 500.
In order to equate all scores for all forms of the exam, the scores for each part are placed on a scale from 0
to 500. On this scale, a score of 360 represents the minimum passing scaled score. The scaled score allows
candidates to know how they performed in relation to the passing standard of 360. (Source: IMA)

Your Performance Report

Performance Reports are sent via e-mail from Prometric to all candidates who take an exam part.
The performance reports are e-mailed approximately 14 days after exam results are posted to the candidates
profile.
Candidates who do not pass the exam will receive a report that indicates their performance on each of the key
topic areas in the multiple-choice section as well as their overall performance on the essay section of the exam.
There are three performance ratings: Satisfactory, Marginal, and Unsatisfactory.

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Still Not Convinced?
Hear From Some New CMAs

I like that my CMA is going to give me more opportunities

down the road. In five or 10 years, wherever I am, Ill be in a
position where a CMA is required.
- Kim Salisbury of Moscow, Idaho

To combine thatmanagement accounting and also

accounting in generalthats a cool area for me and its my
passion. I have to say, for job interviews and applications,
its always special to mention you have the CMA.
- Nicolas Lehmann of Bottmingen, Switzerland

The CMA taught me all I need for my job. It taught me

the best-in-class application of all the business concepts
I wanted to learn and helped take my career to a more
professional level.
- Hussein Ghazi Kahwajiof Beirut, Lebanon.

Thinking About It?

Register for a free, no obligation 14-day trial of the Wiley CMAexel Review
Course and get an exclusive 25% discount to use if you decide to purchase.
Wiley CMAexcel, the official test prep suite of the IMA, has helped thousands of students like Kim, Thomas, and
Hussein become CMAs and excelprofessionally.
Our CMA Review Course has been designed by top accounting lecturers with years of teaching and practice experience
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Learn more about Wiley CMAexcel at www.efficientlearning.com/cma.
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