To become a Certified Management Accountant (CMA), you’ll have to meet several milestones, one of the most important of which is passing the CMA exam.
But what exactly is the CMA exam, and why is it so important for finance and accounting professionals?
Let me explain.
As someone passionate about finance and accounting, I’ve come to appreciate how the CMA designation, offered by the Institute of Management Accountants (IMA), stands as a beacon of excellence globally. This certification validates one’s expertise in financial planning, analysis, and control and underscores the critical role of professional ethics in today’s business landscape.
Let’s examine the CMA exam together and discover everything from eligibility requirements and format to pass rates and costs.
Key Takeaways
- Eligibility Requirements: Eligibility criteria include a bachelor’s degree or an approved professional certification, two years of relevant professional experience, and active IMA membership.
- Exam Format: Comprising two parts, the exam tests candidates through multiple-choice questions and essay questions within three annual testing windows, requiring a passing score of 360 out of 500 for each part.
- CMA Exam Pass Rates: The CMA exam’s challenging nature is reflected in its average pass rate of about 50%, highlighting the rigorous preparation required to succeed.
- Exam Cost: The financial commitment includes IMA membership fees, program entrance fees, exam fees per part, and study materials, totaling an investment of $1,000 to over $3,000.
What is the CMA Exam?
The CMA exam is a rigorous assessment designed to validate the accounting and financial management skills of professionals seeking to advance their careers in business and finance. Administered by the IMA, the CMA certification is globally recognized and emphasizes a blend of financial planning, analysis, decision support, and control, along with professional ethics.
Structured in two parts, the exam covers a comprehensive curriculum intended to test a candidate’s ability to contribute to the financial success of a business.
- Part 1 focuses on Financial Planning, Performance, and Analytics, addressing topics such as budgeting, forecasting, and performance management.
- Part 2, Strategic Financial Management, delves into areas like financial statement analysis, corporate finance, risk management, and investment decision-making.
Who Should Take the CMA Exam?
The certified management accountant certification is ideal for those dedicated to advancing in accounting and finance. It offers a pathway to elevated credibility, career advancement, and professional growth.
- Finance professionals seeking to validate their skills in financial management and strategic planning by becoming certified management accountants.
- Accountants aiming to enhance their career opportunities and gain recognition in management accounting.
- Business professionals looking to acquire a deep understanding of financial planning and analysis to contribute to strategic decision-making.
- Students and recent graduates in accounting or finance who want to distinguish themselves early in their careers.
- International candidates looking to establish their credentials and compete in the global market of finance and accounting professionals.
CMA Exam Pass Rates
Achieving the CMA designation is challenging, as reflected in its pass rates. As of the most recent statistics, the pass rate on the CMA averages about 50% on both parts 1 and 2. This figure underscores the exam’s rigorous nature and how hard it is to pass the CMA exam on the first try.
Despite these demanding odds, the achievement of passing the CMA exam is highly regarded and rewards candidates with prestigious recognition in the fields of management accounting and financial management. The pass rate serves as a testament to the dedication and expertise of those who earn the CMA title, marking them as elite professionals in their field.
CMA Exam Eligibility and Requirements
The CMA exam has specific eligibility criteria designed to ensure that candidates have the necessary knowledge and skills for a career in management accounting and financial management. Certified management accountant requirements include:
Educational Background
- Bachelor’s Degree: Candidates must hold a bachelor’s degree from an accredited college or university recognized by the IMA.
- Professional Certification: Alternatively, a professional certification approved by the IMA may also meet the educational requirement.
Professional Experience
- Management Accounting or Financial Management Experience: Candidates must fulfill a requirement of two consecutive years of work experience in either management accounting or financial management. This experience can be completed before or within seven years after passing the exam.
IMA Membership Requirements
- Active Membership: Candidates must maintain an active membership with the Institute of Management Accountants to register for the exam and receive certification.
Additional Considerations
- Continuing Education: CMAs are required to complete 30 hours of CPE annually to maintain their certification, with at least 2 hours focused on ethics.
- Entrance Fee: Candidates must pay an entrance fee for the CMA program, which grants access to the exam, study materials, and other resources.
- Examination Parts: The CMA exam is divided into two parts, which can be taken in any order. Candidates must pass both parts within three years from the date of registering for the exam.
CMA Exam Sections and Administration
The CMA exam is meticulously designed to assess the comprehensive knowledge and analytical skills of candidates in management accounting and financial management. The CMA exam is divided into two parts, each focusing on a core set of competencies that are crucial for success in the field. Below is a breakdown of the tests required when becoming a certified management accountant:
Part 1: Financial Planning, Performance, and Analytics
- External Financial Reporting Decisions: This section covers the basics of financial statements, including how they’re prepared, analyzed, and used for decision-making.
- Planning, Budgeting, and Forecasting: Candidates are tested on their ability to prepare budgets, conduct forecasting, and manage financial plans.
- Performance Management: This involves understanding and analyzing financial and operational indicators to manage business performance.
- Cost Management: Examines cost management concepts, including measurement, costing systems, and overhead costs.
- Internal Controls: Focuses on governance, risk management, and internal control frameworks.
- Technology and Analytics: Addresses the role of technology in managing financial data and making decisions based on analytics.
Part 2: Strategic Financial Management
- Financial Statement Analysis: Tests the ability to interpret and evaluate financial statements to understand an organization’s financial health.
- Corporate Finance: Covers financial risk management, investment decisions, and working capital management.
- Decision Analysis: Focuses on making informed business decisions based on financial data.
- Risk Management: Examines the strategies for managing various types of financial and operational risk.
- Investment Decisions: Assesses knowledge of how to evaluate and manage investment opportunities.
- Professional Ethics: Emphasizes the importance of ethical considerations in financial management and decision-making.
Administration
- Testing Windows: The CMA exam is offered in three testing windows throughout the year: January/February, May/June, and September/October. This allows candidates flexibility in scheduling their exam dates.
- Test Centers: The CMA exam is administered at Prometric Testing Centers globally, ensuring a standardized testing environment. Candidates must schedule their exam appointments through the Prometric website after registering for the exam with the IMA.
- Registration: Candidates must first register for the CMA exam with the IMA and pay the associated fees. After registration, candidates receive an authorization number to schedule their exam parts within the specified testing windows.
- Retake Policy: If a candidate does not pass a part of the exam, they can retake it during the next testing window. There is no limit to the number of times a candidate can attempt the exam, but they must complete both parts within three years from the date of registering for the exam.
Preparing for the CMA Exam
Preparing for the CMA exam requires more than just meeting CMA certification requirements. You’ll also need a structured approach, combining thorough study, practice, and an understanding of the exam format. Candidates often turn to reputable preparation courses to guide their study efforts. Here’s how you can effectively prepare for the CMA exam, with insights from this thread from recent exam takers.
Study Materials and Practice
- Utilize Test Prep Review: Many candidates find most study materials closely aligned with the actual exam. The comprehensive test banks and timed study unit questions are essential tools. As one user, Dmmb207, shares, “Used Gleim and passed both sections on the first try,” highlighting the effectiveness of Gleim’s preparation materials.
- Timed Practice Questions: Engaging with practice questions under timed conditions can help you to improve time management skills and exam readiness. The diversity and complexity of questions in some test banks are “notoriously harder,” according to a user, which can be beneficial for thorough preparation.
- Mock Exams: Taking mock exams is crucial for understanding the exam’s format and pressure. However, it’s important to note, as greycoral mentioned, “I felt that the mock exams were way easier than the actual exam.” This indicates the importance of preparing for a range of difficulties.
Study Schedule and Time Management
- Dedicate Consistent Study Hours: Committing to a regular study schedule is critical. One user suggests, “I put in roughly 15 hours per week of studying…” Balancing work, family, and study time, like greycoral, who aimed for “12 hours per week,” is essential for steady progress.
- Cover All Topics Thoroughly: Some areas may seem more challenging or unfamiliar than others. Greycoral expressed difficulty with certain content, “Especially statement of cash flows, ugh.” It’s crucial to spend extra time on weaker areas to ensure a comprehensive understanding.
Preparing for the CMA exam is a demanding but achievable goal. Effective preparation strategies include using comprehensive study materials, committing to a consistent study schedule, and adjusting your study plan based on practice exam experiences.
CMA Exam Costs
Pursuing the CMA designation is a significant investment in your professional future, encompassing both dedication to study and financial commitment. The costs associated with achieving the CMA certification include:
- IMA Membership: Required for exam registration, with fees varying by membership type (professional $245, student $39, academic $135 annually).
- CMA Program Entrance Fee: A one-time fee that initiates your certification journey ($250 for students/academics, $280 for professionals).
- Exam Fees: Each of the two exam parts costs $415 for professionals, with discounts for students and academics.
- Study Materials and Courses: Preparation costs can range from about $500 to over $3,000, depending on the chosen materials and CMA review courses.
Post-Exam Process
Candidates must await their results after completing the CMA exam, which is typically released within six weeks. Upon passing both parts, individuals must fulfill the remaining requirements, including two continuous years of professional experience in management accounting or financial management.
Successfully meeting all criteria leads to the awarding of the CMA certification. This achievement grants access to a global network of professionals, continuous learning opportunities, and the potential for career advancement. Maintaining the certification requires ongoing professional education, ensuring CMAs stay at the forefront of their field.
FAQ
You can retake each part of the CMA exam in the next available testing window, with no limit on the number of attempts.
To pass the CMA exam, you’ll need to score 360 out of a possible 500 points for each part.
Yes, you can take the two parts of the CMA exam in any order that suits your preparation and schedule.
Once you pass one part of the CMA exam, you must pass the second part within three years to retain the validity of your score.
If you don’t pass a section of the CMA exam, you can retake it in a future testing window, focusing on improving your study and preparation.
Yes, there is an optional 10-minute break halfway through each exam part that does not count against your testing time.
No, you cannot bring reference materials into the exam; however, relevant formulas and information will be provided within the exam as needed.
