CMA course is offered in India and the USA. Initially, the Indian cost and works accountants course is referred to with the name of ICWAI. Now it is replaced with the name of CMA. CMA stands for cost and management accountants. CMA, India goes for three years with article ship training. CMA, USA is the certificate that has global acceptance. CMA, USA is not theory-based but is a practical knowledge-based course. CMA USA goes for six to twelve months and CMA, USA does not recommend article ship training to the students.
The two parts of the examination have four subjects. The first part tests the knowledge about analytics, financial planning, and performance. The second part is with strategic financial management. Pass marks for CMA USA are 360 out of 500. In the case of CMA India, the pass mark goes as 40 percent in each paper and 50 percent aggregate. This conveys that 250 marks out of 500 are mandatory. There are three levels in Indian CMA. The regulatory body which offers the CMA India certificate is the Institute of Cost Accountants of India and CMA USA is offered by the Institute of management accountants. CMA India targets cost control plans for the companies. CMA USA targets the cost reduction concepts of the companies.
Why companies need cost and management accountants?
The mix of debt and equity is an essential part to raise the funds for the company. The capital structure, interest on debts, trading on equity, and profitability are the figures which need to be adjusted as per the cost analysis. Cost reduction and cost control depend upon the frequency of reporting of different departments, allocation of resources, and nature of cost like variable cost, fixed cost, semi-variable or semi-fixed, or mixed cost. Cost reduction is the reason for the outsourcing of departments, budgeting, standard costing, job evaluation, value analysis, and contribution analysis. Management accountants work with manufacturing companies, service industries, and merchandising industries.
Cost control strategies require more focus in India as there is raising prices, labor unrest, shortage of resources, and less competitiveness in the international markets for Indian products. Inventory management, functional costing, and cost center-based costing are the concepts that play a vital role in decision making. Cost of living and cost of production are interrelated. So, cost control plans fail due to the cost of living and the wage board of different industries tends to become larger and larger. The taxation system of India also increases the cost of production indirectly. Excise duties levied over the raw materials are high in India. Certainly, India is the only country with taxation on raw materials. This leads to increased production costs. The role of a cost accountant is to analyze the cost of living, labor cost; raw material cost, and taxation at multiple points then decide on the cost control strategies.
CMA USA exemptions for CMA India
If the student wants to study CMA USA after CMA India then he needs to apply for the membership. No need to write the exams. From a job perspective, CMA India and CMA USA both are equally valued. But CMA USA cannot practice as a signatory authority in India. Similarly, CMA India does not get certain powers and MOU offers them job opportunities.
Opportunities for CMA in India
CMA India gets a salary of seven lakhs per annum and 20 lakhs per annum. CMA candidates work to bridge the gap in the growth of domestic companies and global companies, expand industrialization and promote global trade. Cost and management accountants work with PSUs, the private sector, the government sector, and the finance and banking sector. Cost accountant, management accountant, auditor, Chief financial auditor, finance controller, managing director, and budget analyst are the different job roles that cost and management accountants hold in India.
Opportunities for CMA outside India
CMA USA gets opportunities in other foreign countries like Canada, Australia, Dubai, the USA, and the UK.
How to clear CMA in the first attempt?
School education, college education, and professional education vary in terms of understanding. It is easy to memorize the fundamentals but presenting the information in an easy-to-understand manner is very important. When starting the course students have the enthusiasm to learn, but after a certain time students feel the detachment. This is the place where parents, teachers, and peers need to motivate the students. At RR Academy we provide personal attention to the students and motivate the students at every stage. This makes them active and studious regardless of time.
Blockchain is the technology that provides backup for bitcoin and also helps for automating the accounting process. Globally, many financial institutions use blockchain for operations. Accountants around the globe are researching the betterment of blockchain technology. Cost audit reports need to be documented for the next five years. This is to improve the standard for cost audit and minimize the risk with cost reduction. So, from a global perspective, it is essential for cost and management accountants to understand the latest technology and managerial skills. In 1982, the term “Due diligence” become popular for changing the business environment. International deals like Teva-Allergan Generics, LinkedIn, and Microsoft in the year 2016, Time Warner-AT&T merger in the year 2016 demand for restructuring during merger and acquisition. The M & A report has due diligence which refers to the valuation and accuracy of data after testing. The reporting standard of the company and financial documents need to be verified. The letter of intent confirms the deal between the two companies during Acquisition. CMA India and CMA USA both prepare the students for the international market of accounting standards.