FOR THE ESSAY QUESTIONS, BOTH WRITTEN AND QUANTITATIVE RESPONSES W...

8. For the essay questions, both written and quantitative responses will be required. Candidates will be expected to present written answers that are responsive to the question asked, presented in a logical manner, and demonstrate an appropriate understanding of the subject matter. Institute of Certified Management Accountants In order to more clearly define the topical knowledge required by a candidate, varying levels of coverage for the treatment of major topics of the content specification outlines have been identified and defined. The cognitive skills that a successful candidate should possess and that should be tested on the examinations can be defined as follows: Knowledge: Ability to remember previously learned material such as specific facts, criteria, techniques, principles, and procedures (i.e., identify, define, list). Comprehension: Ability to grasp and interpret the meaning of material (i.e., classify, explain, distinguish between). Application: Ability to use learned material in new and concrete situations (i.e., demonstrate, predict, solve, modify, relate). Analysis: Ability to break down material into its component parts so that its organizational structure can be understood; ability to recognize causal relationships, discriminate between behaviors, and identify elements that are relevant to the validation of a judgment (i.e., differentiate, estimate, order). Synthesis: Ability to put parts together to form a new whole or proposed set of operations; ability to relate ideas and formulate hypotheses (i.e. combine, formulate, revise). Evaluation: Ability to judge the value of material for a given purpose on the basis of consistency, logical accuracy, and comparison to standards; ability to appraise judgments involved in the selection of a course of action (i.e., criticize, justify, conclude). The three levels of coverage can be defined as follows: Level A: Requiring the skill levels of knowledge and comprehension. Level B: Requiring the skill levels of knowledge, comprehension, application, and analysis. Level C: Requiring all six skill levels of knowledge, comprehension, application, analysis, synthesis, and evaluation. The levels of coverage as they apply to each of the major topics of the Content Specification Outlines are shown on the following pages with each topic listing. The levels represent the manner in which topic areas are to be treated and represent ceilings, i.e., a topic area designated as Level C may contain requirements at the “A,” “B,” or “C” level, but a topic designated as Level B will not contain requirements at the “C” level.

CMA Content Specification Overview

Part 1 Financial Planning, Performance, and Analytics

(4 hours – 100 questions and 2 essay questions)

External Financial Reporting Decisions 15% Level C Planning, Budgeting, and Forecasting 20% Level C Performance Management 20% Level C Cost Management 15% Level C Internal Controls 15% Level C Technology and Analytics 15% Level C

Part 2 Strategic Financial Management

Financial Statement Analysis 20% Level C Corporate Finance 20% Level C Decision Analysis 25% Level C Risk Management 10% Level C Investment Decisions 10% Level C Professional Ethics 15% Level C

Content Specification Outlines

Certified Management Accountant (CMA) Examinations

Part 1 - Financial Planning, Performance, and Analytics

A. External Financial Reporting Decisions (15% - Levels A, B, and C)