Many candidates start with Section A (Financial Reporting), but it is often suggested to tackle Sections B, C, and D first because they build on each other. Specifically for Sections D and E, a good approach is to study immediately after finishing Section C (Performance Management), as both cover variance analysis, keeping the formulas fresh in your mind.
Just as COSO governs ERM, COSO also provides the Internal Control—Integrated Framework . This is non-negotiable knowledge. The five components of internal control (mnemonic: ):
Candidates must be able to differentiate between the major costing systems. is used for customized products, while process costing is for homogeneous goods produced in mass quantities. A significant focus is placed on Activity-Based Costing (ABC) , which assigns overhead to specific activities based on their use of resources, providing a more accurate product cost compared to traditional methods.
Mastering CMA Part 1: Deep Dive into Volume 2, Sections D (Cost Management) and E (Internal Controls)
If you are preparing for the 2026 exam, ensure you have a firm grasp on the updated IMA Exam Content Outline to identify any new focus areas in these sections.
). Overhead is applied to production throughout the year. At year-end, the resulting underapplied or overapplied overhead must be closed out to Cost of Goods Sold (COGS) or prorated.
(approximately 20-25% of the exam)
The most widely used framework for designing, implementing, and evaluating internal controls is from the . The exam requires a thorough understanding of its five interrelated components:
Be able to differentiate inherent risk (risk before controls) from residual risk (risk after controls). Management’s goal is to keep residual risk within the board-approved risk appetite .
Costs are categorized as fixed (unchanged in total within a relevant range), variable (change in total proportionately with volume), or mixed (containing both fixed and variable elements, analyzed using the high-low method).
Many candidates start with Section A (Financial Reporting), but it is often suggested to tackle Sections B, C, and D first because they build on each other. Specifically for Sections D and E, a good approach is to study immediately after finishing Section C (Performance Management), as both cover variance analysis, keeping the formulas fresh in your mind.
Just as COSO governs ERM, COSO also provides the Internal Control—Integrated Framework . This is non-negotiable knowledge. The five components of internal control (mnemonic: ):
Candidates must be able to differentiate between the major costing systems. is used for customized products, while process costing is for homogeneous goods produced in mass quantities. A significant focus is placed on Activity-Based Costing (ABC) , which assigns overhead to specific activities based on their use of resources, providing a more accurate product cost compared to traditional methods. cma part 1 volume 2 sections d e
Mastering CMA Part 1: Deep Dive into Volume 2, Sections D (Cost Management) and E (Internal Controls)
If you are preparing for the 2026 exam, ensure you have a firm grasp on the updated IMA Exam Content Outline to identify any new focus areas in these sections. Many candidates start with Section A (Financial Reporting),
). Overhead is applied to production throughout the year. At year-end, the resulting underapplied or overapplied overhead must be closed out to Cost of Goods Sold (COGS) or prorated.
(approximately 20-25% of the exam)
The most widely used framework for designing, implementing, and evaluating internal controls is from the . The exam requires a thorough understanding of its five interrelated components:
Be able to differentiate inherent risk (risk before controls) from residual risk (risk after controls). Management’s goal is to keep residual risk within the board-approved risk appetite . This is non-negotiable knowledge
Costs are categorized as fixed (unchanged in total within a relevant range), variable (change in total proportionately with volume), or mixed (containing both fixed and variable elements, analyzed using the high-low method).