CMA Foundation Detailed Syllabus for Dec 2021 : CMA Foundation Syllabus and Exam Pattern

Cost and Management Accountant (CMA) is a knowledgeable certification credential within the field of management accounting and financial management. The certification indicates that the person possesses knowledge and information about various areas of monetary planning, analysis, control, decision support, and professional ethics.

Apparently, CMA Foundation students are writing or preparing for such exams for the first time in their life. As a result, individuals may believe that courses such as the CMA, CA, and CS are excessively tough and cannot be finished at the first attempt.

If you want to pass the CMA Foundation exam at the first attempt, you’ll need a strategy. You will waste valuable moments if you don’t have one, which will cost you time, money, and effort. As a result, begin by making a schedule; determine the amount of time (in days and hours per day) you intend to devote to each paper/subject.

Keep these things in your mind while preparing for the CMA foundation exam:

• Make a schedule and know how much time to devote to each subject/paper each day and week.
• Keep to your schedule.
• Print your schedule and post it somewhere where you can easily see it.
• If you need assistance creating a schedule, see how to create a CMA Study Plan.

The CMA Foundation is the first of three levels that must be completed before one may begin their career as a Cost and Management Accountant (CMA) in India. Though CMA Foundation is a beginner’s course, it should not be overlooked for any reason.

However, PRACTICE is a requirement that does not vary for both theory and practical areas in the CMA Foundation. You’ll also need time to practise. As a result, if you want to pass the CMA Foundation exam on the first attempt, you need to begin studying right away.

The role of a CMA is to use the skills of decision-making, planning and performance management to provide expert advice and reporting. CMA certification is provided by The Institute of Cost and Management Accountants of India (ICMAI) that demonstrates expertise in company finance and management accounting.

The CMA Foundation Syllabus 2021 gives different weightage to different CMA foundation subjects. Fundamentals of economics and management, fundamentals of accounting, fundamentals of law and ethics, and fundamentals of business mathematics and statistics are the four papers of CMA Foundation 2021.

The ICMAI offers a series of study materials for theCMA foundation course.

Each paper is worth 100 marks in the exam and lasts three hours.

CMA Foundation exam pattern

1st paper: FUNDAMENTALS OF ECONOMICS AND MANAGEMENT (FEM)

SECTION A: FUNDAMENTALS OF ECONOMICS [50 MARKS]

1. Basic Concepts of Economics – Micro & Macro Economics
   1. The basics of Economics
   2. Utility, Wealth, Production
   3. Theory of Demand (meaning, determinants of demand, law of demand, elasticity of demand-price, income and cross elasticity) and provide (meaning, determinants, law of supply and elasticity of supply)
   4. Equilibrium
   5. Theory of Production (meaning, factors, laws of production-law of variable proportion, Laws of returns to scale)
   6. Cost of Production (concept of costs, short-run and long-run costs, average and marginal costs, total, fixed and variable costs)

2. Forms of Market
   1. Pricing strategies in various sorts of markets

3. Money and Banking
   1. Definition of Money, Types, Features and Functions
   2. Definition, functions, utility, principles of Banking
   3. Commercial Banks, financial institution
   4. Measures of credit control and market

SECTION B – FUNDAMENTALS OF MANAGEMENT [50 MARKS]

4. Management Process
   1. Introduction, planning, organizing, staffing, leading control, communication, coordination
   2. Concept of Power, Authority, Delegation of Authority, Responsibility, Accountability
   3. Leadership & Motivation – Concepts & Theories
   4. Decision-making – sorts of decisions, decision-making process.

2^nd Paper: FUNDAMENTALS of ACCOUNTING (FOA)

SECTION A: FUNDAMENTALS OF FINANCIAL ACCOUNTING [80 MARKS]

1. Accounting Fundamentals
   1. Accounting Principles, Concepts and Conventions/li>
   2. Capital and Revenue transactions- capital and revenue expenditures, capital and revenue receipts/li>
   3. double-entry bookkeeping system, Books of prime entry, Subsidiary Books, Cash Book/li>
   4. Journal, Ledger, balance/li>
   5. Depreciation – Methods (Straight Line and Diminishing Balance methods only)/li>
   6. Rectification of Errors/li>
   7. Opening entries, Transfer entries, Adjustment entries, closing entries/li>
   8. Bank Reconciliation Statements

2. Accounting for Special Transactions
   1. Bills of Exchange (excluding accommodation bill, insolvency)
   2. Consignment (cost price, invoice price, commission & valuation of stock)
   3. Venture

3. Preparation of Final Accounts:
   1. Of a Profit-making concern (for sole proprietorship concern only)
      1. Accounting treatment of bad debts, reserve for bad and doubtful debts, and provision for discount on debtors and provision for discount on creditors.
      2. Preparation of Trading Account, Profit & Loss Account, and record.
   2. Of a Not-for-Profit making concern
      1. Preparation of Receipts and Payments Account
      2. Preparation of Income and Expenditure Account

SECTION B: FUNDAMENTALS OF  COST ACCOUNTING [20 MARKS]

4. Fundamentals of accountancy
   1. Meaning, Definition, Significance of accountancy, its relationship with Financial Accounting & Management Accounting.
   2. Classification of Costs
   3. Format of Cost Sheet

3^rd Paper: FUNDAMENTALS OF LAWS AND ETHICS (FLE)

SECTION A: FUNDAMENTALS OF COMMERCIAL LAWS [70 MARKS]

1. Indian Contracts Act, 1872
   1. Essential elements of a contract, offer and acceptance
   2. Void and voidable agreements
   3. Consideration, the legality of object and consideration
   4. The capacity of Parties, free consent
   5. Quasi-contracts, Contingent contracts
   6. Performance of contracts
   7. Discharge of contracts
   8. Breach of Contract and Remedies for Breach of Contract

2. Sale of products Act, 1930
   1. Definition
   2. Transfer of ownership
   3. Conditions and Warranties
   4. Performance of the Contract of Sale
   5. Rights of Unpaid Vendor
   6. Auction Sales

3. Negotiable Instruments Act, 1881
   1. Negotiable Instruments
   2. Definitions of note, bill of exchange and Cheque
   3. Difference between note, bill of exchange and Cheque
   4. Crossing – Meaning

SECTION B: FUNDAMENTALS OF ETHICS [30 MARKS]

4. Ethics and Business
   1. Ethics – Meaning, Importance
   2. The “Seven Principles of Public Life”
   3. The connection between Ethics and Law
   4. Ethics in Business

4^th Paper: FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS (FBMS)

SECTION A: FUNDAMENTALS OF BUSINESS MATHEMATICS [40 MARKS]

1. Arithmetic
   1. Ratios, Variations, and Proportions
   2. Simple and interest
   3. Arithmetic Progression and Geometric Progression

2. Algebra
   1. Pure mathematics
   2. Indices and Logarithms
   3. Permutation and Combinations
   4. Quadratic Equations

SECTION B: FUNDAMENTALS OF BUSINESS STATISTICS [60 MARKS]

3. Statistical Representation of knowledge
   1. Diagrammatic representation of knowledge
   2. Distribution
   3. Graphical representation of distribution

4. Measures of Central Tendency and Dispersion
   1. Mean, Median, Mode, mean deviation from the mean
   2. Range, Quartiles and Quartile Deviation
   3. Variance
   4. Co-efficient of Variation
   5. Karl Pearson and Bowley’s Co-efficient of Skewness

5. Correlation and Regression
   1. Scatter diagram
   2. Karl Pearson’s Coefficient of Correlation
   3. Regression lines, Regression equations, Regression coefficients

6. Probability
   1. Independent and dependent events; mutually exclusive events
   2. Total and Compound Probability; Bayes’ theorem; Mathematical Expectation

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