Let me take the question from the basic syllabus to make it understandable and then move on to further doubts that would edge the mind of the students. CMA certification course originated in the USA country, and now it is available in China, India, and in the Middle East. The data from Payscale.com shows that both the courses offer a high salary. MBA (FINANCE) professionals earn around 788,000 rupees per annum when compared to it CMA’s earn around 808,216 rupees per annum. The growth and responsibilities are different from both the courses.
In financial segmentation, financial and management accounting are the two basic-level subjects. When thinking about financial economics, the theory of efficient market hypothesis states that the share prices are market-driven, and financial accounting figures have less impact with share prices. The quarterly, half-yearly, and annual results of the companies are communicated to the public by the senior-level managers with the help of financial accounting. The external factors are determinants of ratio analysis. These factors come under management accounts and require the knowledge of management accounts. CMA is the course that provides the details of internal reporting and decision making. MBA (FINANCE) is the course that provides details of external reporting and management.
The subjects are the same for the MBA (FINANCE) and CMA to some extent. The difference comes with the pass percentage in CMA, which is 40 percent only. The difference is bound to the results, projects, and international exposure. The value for CMA is comparatively large than the MBA (FINANCE) from ordinary universities. If the MBA (FINANCE) is from B-school, then CMA and MBA (FINANCE) both are equally valued. Government jobs and banking jobs treat both the qualifications at par. Private jobs offer different roles and different responsibilities for CMA graduates and MBA (FINANCE) graduates. In the case of the MBA (FINANCE) graduates, to reach the top management position, it takes the planned course of 5 or 8 years. In CMA, the growth comes in handy after passing the exam. CMA is more work-related with managerial elements and strategic elements.
From the examination viewpoint, CMA is recognized as tougher than an MBA (FINANCE) by the students. MBA (FINANCE) is about the concepts of management accounting, and CMA is formatted around the concepts of financial accounting and cost accounting. After 3 or 4 attempts of the exams only, students pass CMA final examination. With efficient coaching, students find it easy to grab the difficult concepts.
Practical knowledge is one thing that is given paramount importance in the job industry. MBA (FINANCE) students avail of foreign projects. As there are three years of article ship in CMA, the employment opportunities are comparatively good similar to MBA (FINANCE) with industrial exposure. The firm of cost accountants, state government, semi-government, central government, public utilities, financial institution, insurance, banks, public sector undertakings, management institutes, universities, educational institutes, co-operative societies, and NGOs are the places where the CMA students are eligible to apply for the project. This guideline is declared by the new practical training scheme 2020 for ICWAI students. The turnover should be 50, 00,000 rupees in the case of the non-service sector, and 25, 00,000 rupees in the case of the service sector. As per the new training scheme, the student can take the subjects like management accounting, financial accounting, financial management, regulatory compliances, auditing, cost accounting, regulatory compliances, indirect taxation, direct taxation, system analysis, corporate laws, industrial laws, banking operations, insurance, insolvency and valuation, project management, financial services, management consultancy services, engineering services, and supply chain management for the project work.
MBA (FINANCE) offered by the top B-schools provides employment opportunities with the help of international networks. But it is important to remember that CMA is the course that is formed by the ACT of parliament and provides certain statutory powers. CMA graduates can work privately to audit the cost of the companies. GST operations, company law, and cost accounting decisions are analyzed by the cost accountants of the company either way with an internal role or external role. CMA and CPA certification is an advantage during the recession time. CMA professionals are also valued globally. And in the USA, there is a demand for CMA professionals in abundance. CMA professionals can also work as private consultants under an independent agency. The dream job to the CMA professionals is associated with the financial accounting, management consulting and performance management, venture capital, financial risk management, corporate finance, financial planning, internal auditing, corporate governance, and information and technology subjects.