Performance Management: CMA Exam Part 1 - Section C

Author: Tom Coghlan

Includes the following topics: Standard costing, flexible budgets, variance analysis, responsibility accounting, transfer pricing methods, and the balanced scorecard.

Using CPE credits to prepare for the Certified Management Accountant (CMA) exam is a pathway to a more successful business career: one that opens doors, builds confidence, closes skills gaps, and lets you tap into a network of 85,000 professionals around the globe.

The CMA certification complements other credentials or degrees and tests for analytical and critical-thinking skills not covered in other exams. About one in three active CMAs in the U.S. are also CPAs.

Publication Date: April 2017

Designed For
Financial officers and controllers, Financial accountants, managerial and cost accountants, Financial and business analysts, Budget managers and analysts, Risk managers, CIO's and information technology professionals.

Topics Covered

• Standard Costs
• Introduction to Variance Analysis
• Contribution Margin
• Flexible Budgets
• Sales Variances
• Direct Material Variances
• Direct Labor Variances
• Overhead Variances
• Responsibility Centers
• Transfer Pricing
• Internal Profitability Analysis
• The Balanced Scorecard

Learning Objectives

• Define a standard cost system and identify the reasons for adopting a standard cost system.
• Explain how budget variance reporting is utilized in a management by exception (MBE) environment.
• Develop an understanding of contribution margin per unit and total contribution margin.
• Identify and describe the benefits and limitations of measuring performance by comparing actual results to the static or master budget.
• Purpose of sales variance analysis and the role of contribution margin in sales variances.
• Develop direct material and direct labor variances.
• Develop overhead rates and the impact of indirect nature of overhead on analysis.
• Identify segments that organizations evaluate, including product lines, geographical areas, or other meaningful segments.
• Define transfer pricing and the objectives of transfer pricing. Identify and calculate transfer prices using variable cost, full cost, market price, negotiated price, and dual-rate.
• Understand the issues in determining product, customer and business unit profitability.
• Explain the relationships between the strategic plan, key performance indicators, and the balanced scorecard.
• Define the concept of the balanced scorecard and identify and describe its four perspectives.

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Finance (6 hours)

Program Prerequisites
None

Advance Preparation
None