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Introduction: CMA Full Form
The CMA Full Form stands for Cost and Management Accountant, a professional certification. Institute of Cost Accountants of India (ICAI) awards this certification to CMAs. Awarded to people with cost and management accounting coursework and practical training.
You must be wondering, “What is CMA?’. Let us describe its course, qualifications, roles, and responsibilities. We’ll also discuss the importance and career opportunities of getting CMA certified.
What is CMA?
The CMA full form stands for Cost and Management Accountant(CMA). Accredited to people, well-skilled, and qualified in finance and management. This certification covers several financial process components.
Anyone qualified with this credential can work in finance. The main aim of this certification and skill is to educate the youth about finances. Also, to strengthen the nation’s position in cost and management accounting.
CMAs can work for cost management, cost reduction, and cost audit of an organization. With this, they seek to develop and put into action a financial plan that helps the company grow.
CMA course
The CMA course focuses on financial management and management accounting. It focuses on cost accounting, financial analysis, budgeting, strategic planning, and decision support. The CMA course and content vary from one organization to another. It also depends on the country which is providing the course. Mentioned below are the core subjects.
The course has three parts: foundation, intermediate, and final.
Foundation Course
The Foundation course of CMA comprises the following 4 Subjects or four papers, each of 100 marks.
- Fundamentals of Economics and Management (FEM)
- Fundamentals of Accounting (FOA)
- Fundamentals of Laws and Ethics (FLE)
- Fundamentals of Business Mathematics and Statistics (FBMS)
Intermediate Course
Talking about the intermediate course of CMA comprises two groups. Each group contains four papers, each paper with 100 marks.
Group I
- Financial Accounting (FAC)
- Laws & Ethics (LNE)
- Direct Taxation (DTX)
- Cost Accounting (CAC)
Group II
- Operations Management & Strategic Management (OMSM)
- Cost & Management Accounting and Financial Management (CMFM)
- Indirect Taxation (lTX)
- Company Accounts & Audit (CAA)
Final Course
The final course of CMA comprises two groups. Each group contains four papers, each paper with 100 marks.
Group I
- Corporate Laws & Compliance (CLC)
- Strategic Financial Management (SFM)
- Strategic Cost Management – Decision Making (SCMD)
- Direct Tax Laws and International Taxation (DTI)
Group II
- Corporate Financial Reporting (CFR)
- Indirect Tax Laws & Practice (ITP)
- Cost & Management Audit (CMAD)
- Strategic Performance Management and Business Valuation (SPBV).
The cost of the CMA course is around INR 53,000. The CMA registration fee costs INR 6,000. The CMA Intermediate CMA registration fees cost INR 22,000. CMA Final registration costs INR 25,000.
CMA course qualification
Now, you must be wondering what the CMA course qualification is. Let’s check out the below pointers.
- One has to graduate from an accredited institute.
- They should have experience in this field.
- Graduation from any course except fine arts.
- Not passed foundation of ICSI/Intermediate of ICAI as background.
- If the candidate has a current Certified Public Accountant (CPA) license is also required.
These were a few of the CMA course qualifications that one should be qualified for. The exam schedule of the CMA program is offered throughout the year. Depending on their preparation and availability, candidates can decide to take Parts 1 and 2 of the CMA exam.
The exam topics cover – analysis, professional ethics, financial planning, decision support, and control. It must align with the candidates’ expertise.
Roles and Responsibilities of CMAs
People certified in the CMA course will learn various roles and responsibilities in financial management. Here are the roles and responsibilities of CMAs.
- CMAs work as financial analysts, where their role is to analyze financial data. They provide insights into reports and provide well-researched reports.
- They assist businesses in calculating the cost of their goods and services.
- They track manufacturing costs and analyze cost data.
- They look for ways to cut costs that support businesses.
- CMAs having managerial roles contribute to the business by overseeing the financial operations.
- They can also take up the roles of auditors to review organizations’ financial processes.
- It also analyzes the weaknesses and improves the efficiency of the business.
Importance of CMAs in Cost Management
The importance of CMAs is quite huge and is the backbone of any business. Let’s check out the importance of CMAs in cost management.
- CMAs deal in cost accounting, enabling them to analyze the cost components in-depth.
- As financial analysts, CMAs study financial data and offer reporting insights. They also offer research reports on cost analysis and planning.
- The position is to help businesses determine the cost of their goods and services.
- They monitor production costs, examine cost information, and search for cost-saving measures.
- To examine an organization’s financial processes and controls, they also assume the function of auditors.
- Additionally, it checks the company’s flaws and makes improvements to increase productivity.
Strategic Decision Support by CMAs
CMAs play an important role in managing costs. They help to match cost choices with the company’s general approach.
- CMAs conduct in-depth financial analyses, such as ratio analysis, trend analysis, and profitability analysis.
- Out of this, they take insights and make the organization’s financial performance.
- Collaborates with different organizations, creating realistic budgets and creating projections.
- They check capital investment projects and also conduct financial feasibility studies.
- The profitability and risk of potential investment possibilities are checked using Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period.
Career Opportunities for CMAs
The CMA certification paves the way for careers in positions that demand strong financial knowledge, cost management ability, and strategic thinking. The following are some of the CMAs’ career options that people can take up after being certified with the certificate.
Financial analyst
Analyses financial analysts prepares reports, and provides insights into businesses.
Management accountants
They work with the management team to provide financial analysis and cost management.
Financial manager
The CMAs oversee a business’s financial budget, report, and others.
Opportunities for CMAs CMA has highlighted the enormous significance of people in the financial industry. We discovered that CMAs play a crucial role in propelling firms toward growth. CMAs are essential to maximizing performance and profitability because of their financial knowledge. They can make accurate choices that lead to long-term expansion in financial environments.
Learn more about some other full forms:
| NBFC Full Form | PF Full Form |
| UTR Full Form | BSF Full Form |
| NPCI Full Form | APBS Full Form |
| GNP Full Form | GPF Full Form |
| FII Full Form | IDBI Full Form |
CMA Full Form: FAQs
It is the professional certification awarded by the Institute of Management Accountants (IMA). It is a globally recognized certification for professionals.
To get enrolled in the course, one has to complete their graduation from an accredited institute. They should have experience in this field. Graduation can be done from any discipline to be eligible for the CMA program.
The CMA certification is valid for 3 years. CMAs must earn continuing professional education (CPE) credits over three years to keep their certification.
CMAs are important in helping businesses with budgeting, performance assessment, and financial planning. They offer strategic insights to promote company expansion and enhance its financial results.
No, CMAs are useful for firms of all sizes. Both small firms and start-ups can profit from their skills. They can benefit from cost management, financial analysis, and performance review.
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