The exam covers the role of the internal auditor, their independence, and their responsibility to the board of directors. You should be familiar with different types of audits, including operational, compliance, and financial audits. 3. Systems Controls and Security Measures
Identifying and managing bottlenecks to maximize throughput. Section E: Internal Controls (15%)
This is a favorite on the CMA exam. ABC assigns overhead based on the activities that actually drive costs, providing a more accurate product cost than traditional volume-based allocation. 3. Overhead Costs cma part 1 volume 2 sections d e
For Section E, don't just memorize controls—understand why a specific control (like segregation of duties) prevents a specific type of fraud.
When studying Section D, imagine a factory floor. When studying Section E, imagine a bank vault or a secure server room. Visualizing the application makes the theory stick. The exam covers the role of the internal
Cost management isn't just about accounting; it’s about understanding the "why" behind business expenditures to improve profitability. 1. Measurement Concepts
By mastering the balance between the and the risk-mitigation of Section E , you will be well on your way to earning your CMA designation. When studying Section E
Methods like the Direct Method , Step-Down Method , and Reciprocal Method for moving costs from support departments (like IT or HR) to production departments. 4. Supply Chain Management & Business Process Improvement The CMA exam modernizes cost management by including: Lean Manufacturing: Eliminating waste (Muda). Just-in-Time (JIT): Reducing inventory carrying costs.
Candidates must be able to identify the (Pressure, Opportunity, and Rationalization) and understand how strong internal controls mitigate these risks. Study Tips for Sections D & E
Actual costing uses real costs for materials, labor, and overhead. Normal costing uses actual costs for materials and labor but applies a predetermined rate for overhead.