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CMA Program

The CMA program is the flagship program of the ICMA. On completion, participants will have developed advanced skills of analysis, evaluation and synthesis in the areas of strategic cost and management accounting and business analysis; and, in the process, obtained an in-depth awareness of the current developments in the profession.

The programme can only be taken by a Graduate or Associate member of the Institute; or a student member who has met the pre-requisite entry requirements of the program.

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Accelerate your career goals with the CMA credential

As an experienced finance professional, you want to keep scoring those career goals and move up the ladder. The next step in your career journey is the CMA credential.

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CMA Training

The CMA Programme consists of two post-graduate level subjects, namely:

  • Strategic Cost Management (SCM)

  • Strategic Business Analysis (SBA)

It is expected that accredited bodies and recognised providers of the CMA programme will incorporate a research component in both the CMA papers. This research component will usually be either via an assignment, case study, role-playing simulation, individual project or group-learning exercise covering one or more of the topic areas of each of the two CMA programme subjects. The research components of each of the two subjects could also be combined to form a comprehensive project. It is expected that this research component will carry a weight of 50 percent of the total assessment for each subject.

CMA Syllabus

This is an advanced level course that covers the role of the management accountant in complex modern industrial organisations within which the various facets of decision-making and controlling operations take place. The course includes the discussion of management control systems, costing systems and activity-based costing, activity management, and implementation issues in modern costing systems.

Emerging Issues that are vital to the modern value-creating accountant such as environmental, social, governance and empowerment issues are also covered. The course is designed to prepare students for careers as professional management accountants.

Synopsis:

  • Describe the basic conventions and doctrines of managerial and cost accounting and other generally accepted principles which may be applied in the contemporary cost management models.

  • Identify major contemporary issues that have emerged in managerial accounting.

  • Critically evaluate a number of issues relating to the design and implementation of cost management models in modern firms.

  • Explain the management accountant’s role in the implementation of cost management systems for product costing and decision-making purposes.

Topics Covered :

Topic 1: Management Control Systems

The role of accounting is often stated to be providing information for decisions.  Management accounting, however, fulfills a much broader role in organisations.  As well as providing a framework for planning, management accounting has an important role in management control. This topic will introduce the concept of management control and consider the role of management accounting in management control together with some issues in the design of management accounting systems, the types of control, and how the various levers of control can be integrated.

Topic 2:  Lean Manufacturing and Quality Control

This topic introduces the traditional production management techniques and strategies.  The 5-P’s of production are specifically considered; i.e. the product, plant, process, program, and people.  The three traditional types of production; i.e. Job; Batch; and Flow production are also studied, and concepts such as quality and reliability are also introduced. Modern production management techniques originating from Japan, such as Flexible Manufacturing Systems (FMS); and Total Quality Management (TQM) are also considered. It is shown that concepts and techniques used in manufacturing can also be used in service industries. The technologies that are disrupting today’s manufacturing and service environments and the technology trends that will change the way organisations create and deliver a product or service in the near future are also discussed.

Topic 3:  Cost Accounting and Cost Management in a Lean Environment

This topic continues to look at production management techniques and strategies, especially the Leaner production philosophies originating from Japan, such as Just-In-Time production (JIT). The strategic management accounting issues raised by such philosophies and techniques and aspects of the influence of the philosophy on production and purchasing are also covered. ‘Backflush Costing Systems’ are introduced in this topic, as an alternative to job-order and process costing systems.

Topic 4: Life Cycle Costing Systems

This topic overviews the complexity that exists in modern industrial settings, and why the conventional management accounting techniques may provide misleading information in such environments.  It is shown that indirect costs make up the largest percentage of total costs in such complex firms, and that there are many challenges in allocating such indirect costs. Methods of identifying ‘obsolete’ cost systems and of improving cost control are also discussed. Whole of Life Costing, i.e. costing before, during and after manufacturing or service delivery is considered within a complex and competitive industrial setting. A part of Life Cycle Costing, called Target Costing, i.e. the techniques of controlling pre-production design costs, is considered in detail.

Topic 5:  Bench-marking

This topic discusses in depth ‘Bench-marking’ which is the formal process of measuring and comparing a company’s operations, products and services against those of top performers, both within and outside that company’s primary industry. Bench-marking approaches such as internal, competitive, functional and generic are specifically considered, as are measures used to evaluate performance.

Topic 6:  Activity Based Cost Allocation Systems

This topic focuses on the principles of Activity Based Costing (ABC), which is shown as the response to the challenge of complexity. Aspects such as “volume”, “structural” and “introductory” costs are specifically considered. The differences between manufactured products and services are highlighted, and the question is asked whether such differences warrant a separate costing system for service industries. Other approaches to cost allocation, such as TDABC, are considered.

Topic 7:  Customer Profitability Analysis

This topic moves the focus from analysis to action.  Methods of finding profitable customers and products are considered, as is the area of account management and Customer Relationship Management (CRM). The topic also considers the impact of big data analytics and social networks on the company’s CRM, and how these have evolved into Social CRMs.

Topic 8:  Process Control and Activity Based Management

This topic discusses the areas of process control and activity management; and shows how cost drivers obtained for cost allocations can be used as performance measures of process efficiency and effectiveness. Monitoring systems, and the concepts of frequency, timeliness and accuracy are also considered, especially in relation to white-collar departments.

Topic 9:  Implementing Cost Analysis and Control Systems

This topic outlines the implementation stage of activity-based cost management systems.  Behavioural aspects, especially in creating motivation are discussed.  Long-term cost management models are also considered. The topic also considers the issues that arise when moving from ‘project’ to ‘steady state’; especially the factors that will ensure the long-term sustainability of a re-engineered ABC system.

Topic 10:  Strategic Performance Management Systems

This topic looks at Strategic Performance Measurement Systems, especially the linking of financial control systems with process-based control systems.  Some Key Questions to ask in the strategic refocusing of Performance Measurement Systems are discussed, and the recognition of frameworks such as the Balanced Scorecard in linking financial and strategic performance measures are specifically considered.

Topic 11:  Environmental and Social Management Accounting

Environmental and Social Management Accounting [also known as Corporate Social Responsibility (CSR)] is changing the way organizations go about their business. This topic explores what ESMA is, and what it means for organizations, now and in the future. The need for integrated management accounting reports are discussed; and the impact of climate change and carbon emissions trading on cost and management accounting is specifically considered.

Topic 12:  Strategic Governance and the Strategic Audit

This topic first overviews the different approached to corporate governance, which specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. The development of Enterprise governance systems, incorporating both structural governance and strategic governance are then compared and contrasted.  Finally, it considers assurance issues using ‘leading’ rather than ‘lagging’ indicators, via the Strategic Audit.

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