One of the most prized certifications in the realm of management accounting is the Certified Management Accountant (CMA) credential authorized by the Institute of Management Accountants (IMA). Other Credentialing Examinations- The US CMA exam is divided into two exam parts:
- Part 1: Financial Planning, Performance, and Analytics
- Part 2: Strategic Financial Management
Both parts deal with different financial management topics, and both subjects must be passed to receive the CMA credential. In order to prepare effectively, it is imperative to know the syllabus, weightage, and difficulty level of all the parts. In this article, we will compare CMA Part 1 and Part 2 in detail to help you determine your study strategy.
Table of Contents
An Insight of Structure of US CMA Exam
Both CMA Part 1 & Part 2 have the same exam pattern:
- 100 MCQs – 75% weightage
- Essay Questions (with Multiple Tasks)-25% weightage
- Exam Duration: 4 hours (3 hours for MCQs and 1 for essays)
- Passing Score: 360 out of 500
Both sections assess your ability to leverage theoretical concepts in applied settings relating to real-world financial decision-making. Part 1 is about financial reporting and analytics, while Part 2 is about strategic financial management.
Comparison of Syllabus for US CMA Part 1 and Part 2
The table below summarises the key topics covered in each section:
| Part 1: Financial Planning, Performance, and Analytics | Part 2: Strategic Financial Management |
| A. External Financial Reporting Decisions (15%) | A. Financial Statement Analysis (20%) |
| B. Planning, Budgeting, and Forecasting (20%) | B. Corporate Finance (20%) |
| C. Performance Management (20%) | C. Decision Analysis (25%) |
| D. Cost Management (15%) | D. Risk Management (10%) |
| E. Internal Controls (15%) | E. Investment Decisions (10%) |
| F. Technology & Analytics (15%) | F. Professional Ethics (15%) |
The importance of each topic in the context of the examination is represented by a weightage percentage assigned to each topic.
Syllabus in detail & Weightages
CMA Part 1: Financial Planning, Performance, and Control
Such studies follow cost accounting, and decision-making techniques (financial reporting).
- External Financial Reporting Decisions (15%)
- Generally Accepted Accounting Principles and International Financial Reporting Standards
- A decent representation of quality financial statements
- Revenues, leases, and contingencies
- Planning, Budgeting, and Forecasting20%
- Budgeting methods (Zero-based, Activity-based, etc.)
- Methods of Forecasting (Quantitative & Qualitative)
- Variance performance analysis
- Performance Management (20%)
- Key performance indicators (KPIs)
- Balanced scorecard and the centers of responsibility
- Profitability analysis
- Cost Management (15%)
- Cost behaviour and cost-volume-profit (CVP) analysis
- Activity-based costing (ABC)
- Standard cost and variance analysis
- Internal Controls (15%)
- Risk management and compliance
- Some example data models under Sarbanes-Oxley Act (SOX) and COSO framework
- Detection and prevention of fraud
- Technology & Analytics (15%)
- Data governance and cybersecurity
- Artificial Intelligence and Business Intelligence in accounts
- Data visualization techniques
CMA Part 2: Strategic Financial Management
It also covers managerial finance, risk management and related ethics.
Financial Statement Analysis (20%)
- Ratio analysis (Liquidity, Profitability and Solvency ratios)
- Financial modeling techniques
- Quality and sustainability of earnings
Corporate Finance (20%)
- Capital structure decisions
- Working Capital Management and Dividend Policy
- Mergers and Acquisition and Corporate Restructuring
Decision Analysis (25%)
- Introduction to Cost-Volume-Profit (CVP) Analysis
- We cover marginal analysis and pricing strategies
- Linear programming and break-even analysis
Risk Management (10%)
- Financial risks (Market, Credit and Operational risks)
- These are risk assessment and mitigation techniques
- Strategies for insurance and hedging
Investment Decisions (10%)
- NPV, IRR, Payback period (Capital budgeting methods)
- Cost of Capital & Capital Asset Pricing Model (CAPM)
- Sensitivity & scenario analysis
Professional Ethics (15%)
- IMA’s Ethical Standards
- Governance and compliance
- Frameworks for making ethical decisions
CMA Part 1 vs Part 2: Which Is More Difficult?
It also depends upon your background and experience level. For many candidates Part 1 is harder than Part 2 we’re sure due to the depth of financial reporting detail and costing concepts.
CMA Part 1 is harder if:
- You have a hard time with financial statements and cost management.
- You avoid budgeting and variance analysis.
- You have no prior experience in accounting.
CMA Part 2 is harder if:
- Your decision analysis and capital budgeting skills are poor.
- You know nothing about financial statement analysis and corporate finance.
- You struggle with risk management and ethics.
Recommended Study Plan for CMA Exam
Study Hours Required
- Expect to dedicate, on average, 150-170 hours of study per part.
- Part 1: 4-6 months of prep
- Phase 2: 3-5 Months Preparation
Best Study Strategy
- Review the Exam Pattern – Review the syllabus and format of the paper
- Official CMA Prep Material—Gleim, Wiley or Hock books.
- Solve past papers and MCQs to improve accuracy.
- Plan Your Time – Make sure you set eyes with dedicated hours to study every day.
- Revise – Mock tests help you understand your weak areas.
Exam Fees and Passing Rates
CMA Exam Fees (2024)
- IMA Membership Fee: $135 (Per Annum)
- Cost of CMA Entrance: $280 (Students) / $300 (Professionals)
- Cost per part: $460 (students) / $620 (professionals)
CMA Exam Passing Rate
- Part 1 Pass Rate: 45%
- Part 2 Pass Rate: 50%
The Part 2 pass rate is a little higher, suggesting that candidates find it easier than the Part 1.
Which One Should You Do First: Part 1 or Part 2?
How you take the exams depends on your strengths.
Take Part 1 First if:
- Your background is in accounting and financial reporting.
- You familiar with cost management principles.
Take Part 2 First if:
- You were previously in corporate finance
- You are most interested in decision-making and strategy subjects.
Conclusion
Certified Management Accountant CMA Part 1 & CMA Part 2 centres around financial planning and analytics, while Part 2 focuses on strategic financial management. Which part you take first should be a function of your strengths and background. Part 1: CMA Exam Study Plan CMA Candidates: How to Pass the CMA Exam: A Comprehensive Guide In the world of finance and accounting, obtaining professional certification can set you apart in your career.
Good luck with US CMAs!
FAQ on US CMA Part 1 & Part 2 Exams
What is the difference between CMA Part 1 and Part 2?
- Part 1 covers financial planning and analytics, and Part 2 discusses strategic financial management.
That which part of the CMA exam is harder?
- Part 1 is usually more difficult because of some tricky financial reporting and cost management topics.
What is the CMA Part 1 and Part 2 pass rate?
- Only 45% of applicants pass Part 1 and 50% pass Part 2.
How long should I study for each part of the CMA Exam?
- You will want 150-170 hours per part, usually spread out say 4-6 months.
Which part of CMA should I give first?
- Take Part 1 if you have an accounting background; otherwise, take Part 2 first.
What are the key topics included in CMA Part 1?
- Areas of expertise: Financial reporting, budgeting, performance management, cost management, internal controls and technology
Important Subjects in CMA Part 2
- Analysis of financial statements, corporate finance, decision analysis, risk management, investment decisions, and ethics.
How many questions does each CMA exam part have?
- 100 MCQs and 2 Essay Questions in each part.
How is the CMA exam scored?
- For each part, a score of at least 360 out of 500 is needed to pass.
Is it possible to sit both CMA parts together?
- Yes, but it is also advisable to write them separately so you can focus on both.
Now, which is more calculation based, CMA Part 1 or Part 2?
- Part 1 includes more of the calculations around cost and budgeting, whereas Part 2 focuses more on decision-making.
What are the CMA exam fees?
- For means of 1 contained members, the examination fees are $460 per part whereas for level specialists these are $620 per part.
What are the best study materials for CMA?
- Gleim, Wiley, and Hock are the three most recommended CMA prep providers.
When can I take the CMA exam?
- 3-times a year in January/February, May/June and September/October.
What if I fail a CMA exam part?
- You can repeat only the section that you failed in the following testing window.
Do you need work experience for CMA certification?
- Yes, two years of applicable work experience in the seven years after taking the exam.
Is the CMA exam open book?
- No, it is a computer-based, closed-book exam.
Is there negative marking for CMA exam questions?
- The answer is no, there is no negative marking for incorrect answer.
CMA Exam Calculator: Am I allowed to bring one in?
- Yes, though only calculators approved by the IMA are permitted.
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