Section A - Planning, Budgeting and Forecasting Planning, Budgeting and Forecasting represents 30% of the CMA Part 1 exam. Part 1 is a four hour exam that will contain 100 multiple-choice questions and 2 essay questions. Topics within an examination part and the subject areas within topics may be combined in individual questions. Therefore, we cannot predict how many multiple choice questions you may get from this section, nor can we predict whether you will get any essay questions from this section. The best approach to preparing for this exam is to know and understand the concepts well and be ready for anything. This section focuses on the budgeting process in a business and its inseparable connection with the planning process. Exam questions may address the theories and process of planning and budgeting as well as the different types of planning and budgeting. Top-level planning and the use of pro forma financial statements in the planning process are important topics. Numerical questions may relate to how much should be budgeted or expected during a period. Questions may also involve a more detailed calculation of the expected cash balance at some period in time, or the cash inflows or outflows during a period. The scope of the numerical questions in planning and budgeting is large, requiring the ability to apply principles and ideas to different situations. The topics of strategic and other types of planning are not specifically included in the Learning Outcome Statements for this exam. However, we have included a brief discussion of planning here because of its foundational importance in budgeting. You need to understand the benefits of planning, the goals of planning and the general steps in the planning process. Additionally, you should be familiar with the different types of planning that a business does. In the area of budgeting, you must understand the budget process and the order in which the different budgets are prepared. You also must be able to make different budgeting calculations. These calculations are not necessarily intuitive when you begin your study process, but after doing some questions and memorizing the required formulas, this should become an area where you will feel very comfortable. Forecasting techniques, learning curves and other quantitative analysis tools are included because of their usefulness in planning and budgeting. Another topic in this section, top-level planning and analysis, deals with pro forma financial statements and their use in strategic planning.
Posted on: Sat, 02 Nov 2013 07:21:55 +0000
Trending Topics
Recently Viewed Topics
© 2015