Planning, Budgeting, and Forecasting: CMA Exam Part 1 -Section B

Author: Tom Coghlan

Includes the following topics: Strategic planning, budgeting concepts and methodologies, forecasting, operating budget cycle, and pro-forma financial statements.

Using CPE credits to prepare for the Certified Management Accountant (CMA) exam is a pathway to a more successful business career: one that opens doors, builds confidence, closes skills gaps, and lets you tap into a network of 85,000 professionals around the globe.

The CMA certification complements other credentials or degrees and tests for analytical and critical-thinking skills not covered in other exams. About one in three active CMAs in the U.S. are also CPAs.

Publication Date: April 2017

Designed For
Financial officers and controllers, Financial accountants, managerial and cost accountants, Financial and business analysts, Budget managers and analysts, Risk managers, CIO's and information technology professionals.

Topics Covered

• Strategic Planning
• Strategic Planning Tools and Techniques
• Budgeting Concepts
• Correlation and Regression
• The Learning Curve
• Budget Methodologies
• The Operating Budget
• Capital Expenditure and Cash Budgets
• Top Level Planning and Analysis

Learning Objectives

• Discuss how strategic planning determines the path an organization chooses for its long-term goals.
• Demonstrate an understanding of Michael Porter's generic strategies of cost leadership, differentiation and focus.
• Identify the internal and external factors that should be analyzed during a SWOT analysis, how the analysis leads to recognition of organizational opportunities, limitations, and threats.
• Demonstrate an understanding of the following tools: Situational analysis, competitive analysis, PEST analysis, scenario planning, contingency planning, and the BCG Growth-Share matrix.
• Develop understanding of how management uses budgets to motivate, control, communicate, and influence.
• Provide an overview of business forecasting and statistical forecasting.
• Develop an understanding of learning curve analysis.
• Define the purpose, time frame, appropriate use, benefits and limitations for: Annual profit plan/master budgets, project budgets, activity-based budgets, zero-based budgets, continuous budgets, static and flexible budgets.
• Identify and develop the components of the annual profit plan's operating budget: Sales forecast and sales budget, ending inventory levels and production budget, manufacturing Budgets (Direct materials, direct labor, and overhead), cost of goods sold budget, and expense budgets.
• Prepare a capital expenditure budget and a cash expenditure budget.
• Define the purpose of and prepare the following pro forma financial statements: Income statement, statement pf change in stockholder equity, balance sheet, and statement of cash flows.

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Finance (6 hours)

Program Prerequisites
None

Advance Preparation
None