CMA FOUNDATION SYLLABUS AND WEIGHTAGE
In this article, find CMA foundation syllabus and weightage.
Institute of Cost & Works Accountants of India (ICWAI) has changed its name into The Institute of Cost Management Accountants of India (ICMAI). Also, ICWA course has been renamed as CMA course. There is no difference between ICWAI and CMA, and they are the same. They are two words used differently to describe the same thing.
The course has three stage gates i.e.
- CMA Foundation,
- CMA Intermediate
- CMA Final.
Today we will discuss about CMA Foundation course syllabus in detail.
The Institute of Cost Accountants of India made some changes in CMA Foundation syllabus from 2016. In this article we will give you a detailed update regarding the new syllabus, weightage and other important points.
ICMAI Syllabus for CMA Foundation
| Syllabus 2016 – Foundation Course | |
| P1 | Fundamentals of Economics & Management |
| P2 | Fundamentals of Accounting |
| P3 | Fundamentals of Laws and Ethics |
| P4 | Fundamentals of Business Mathematics & Statistics |
| Foundation Course Examination: Descriptive Mode.
Foundation Examinations – Two (2) times in a year in every six (6) months. |
|
Weightage:
In the new syllabus there is a percentage indicated for the weight a particular subject carries. We have compiled all the subject wise weightages to help students plan their schedule in a strategic manner.
Detailed bifurcation of the course subjects:
| ICMAI Foundation Syllabus 2018 | |
| Paper 1: Fundamentals of Economics and Management (FEM) | |
| Fundamentals of Economics | 50% |
| Fundamentals of Management | 50% |
| Paper 2: Fundamentals of Accounting (FOA) | |
| Fundamentals of Financial Accounting | 60% |
| Fundamentals of Cost & Management Accounting | 40% |
| Paper 3: Fundamentals of Laws and Ethics (FLE) | |
| Fundamentals of Commercial and Industrial Laws | 70% |
| Fundamentals of Ethics | 20% |
| Paper 4 : Fundamentals of Business Mathematics and Statistics(FBMS) | |
| Fundamentals of Business Mathematics | 40% |
| Fundamentals of Business Statistics | 60% |
Note: Subjects which are related to provisions of law/ applicable statutes shall be read with amendments made from time to time.
Detailed Syllabus
Paper 1: Fundamentals of Economics and Management (FEM)
PART A: Fundamentals of Economics
- Basic Concepts of Economics
(a) The Fundamentals of Economics & Economic Organizations
(b) Utility, Wealth, Production, Capital
(c) Central Problems of an Economy
(d) Production Possibility Curve
(e) Theory of Demand (meaning, determinants of demand, law of demand, elasticity of
demand- price, income and cross elasticity) and Supply (meaning, determinants, law
of supply and elasticity of supply)
(f) Equilibrium
(g) Theory of Production (meaning, factors, laws of production- law of variable
proportion, laws of returns to scale)
(h) Cost of Production (concept of costs, short-run and long-run costs, average and
marginal costs, total, fixed and variable costs)
- Forms of Market
(a) Forms of market- monopoly, perfect competition, monopolistic
competition, oligopoly, duopoly
(b) Pricing strategies in various markets
- National Income
(a) GDP, NDP, GNP, NNP, Measures of National Income
(b) Personal Income, Private Income, Disposable Income
(c) Consumptions, Savings and Investment
(d) Economic growth and fluctuations
- Money
(a) Definition and functions of money
(b) Inflation – meaning, effect on production and distribution of wealth, control
measures
- Banking
(a) Definition, functions, utility, principles of Banking
(b) Commercial Banks, Central Bank
(c) Measures of credit control and Money Market
(d) National & International Financial Institutions
PART B – Fundamentals of Management
- Evolution of Management Thought
(a) Evolution of Management thought process – Classical, Neo-classical, Modern Theories
(b) Management Process – introduction, planning, organizing, staffing, leading, control,
communication, co-ordination.
- Management Process
(a) Introduction, planning, organizing, staffing, leading, control, communication, coordination
(b) Concept of Power, Authority, Delegation of Authority, Responsibility, Accountability
(c) Leadership & Motivation – Concept & Theories
- Group Dynamics & Organizational Conflicts
(a)Group Dynamics- concept of group and team, group formation, group cohesiveness
(b) Management of organizational conflicts- reasons, strategies
- Decision-making- types of decisions, decision-making process.
Paper 2: Fundamentals of Accounting (FOA)
Section A: Fundamentals of Financial Accounting
- Accounting Process
(a) Theoretical Framework
(b) Capital and Revenue transactions
(c) Measurement, Valuation and Accounting estimates
(d) Double entry system, Books of prime entry, Subsidiary Books, Cash Book
(e) Journal, Ledger, Trial Balance
(f) Rectification of Errors
(g) Opening entries, Transfer entries, Adjustment entries, Closing entries
- Bank Reconciliation Statements
- Accounting for Depreciation – methods, computation and accounting treatment
- Preparation of Final Accounts:
(a) Of a Profit-making concern (sole proprietorship concern)
(b) Of a Not-for- Profit making concern
(c) Under Single Entry and computation of profit (basic level)
- Accounting for Special Transactions
(a) Bills of Exchange
(b) Consignment
(c) Joint Venture
(d) Sale of goods on approval or return basis
Section B: Fundamentals of Cost & Management Accounting
- Fundamentals of Cost Accounting
(a) Cost and Management Accounting – Generally Accepted Cost Accounting
Principles & Cost Accounting Standards
(b) Material cost (including Accounting of Inventory – FIFO, Weighted Average Cost)
(c) Labor costs, Direct Expenses and Overheads
(d) works cost
- Fundamentals of Management Accounting
Paper 3: Fundamentals of Laws and Ethics (FLE)
Section A: Fundamentals of Commercial and Industrial Laws
- Laws of Contracts (40%)
- Sale of Goods (20%)
- The Child Labour (Prohibition and Regulation) Act,1986 (10%)
Section B: Fundamentals of Ethics
- Ethics and Business (30%)
Paper 4: Fundamentals of Business Mathematics and Statistics(FBMS)
Section A: Fundamentals of Business Mathematics
- Arithmetic
(a) Ratios and Proportions
(b) Simple and Compound interest
(c) Progression – Arithmetic, Geometric, Harmonic
- Algebra
(a) Set Theory
(b) Variation, Indices, Logarithms
(c) Permutation and Combinations
(d) Quadratic Equations
(e) Determinants and Matrices
- Calculus
(a) Constant and variables, Functions, Limit & Continuity
(b) Differentiability & Differentiation, Partial Differentiation
(c) Derivatives – First order
(d) Indefinite Integrals
(e) Definite Integrals
Section B: Fundamentals of Business Statistics
- Statistical Representation of Data
(a) Diagrammatic representation of data
(b) Frequency distribution
(c) Graphical representation of Frequency Distribution – Histogram, Frequency
Polygon, Ogive, Pie-chart
- Measures of Central Tendency and Dispersion
(a) Mean, Median, Mode, Mean Deviation
(b) Quartiles and Quartile Deviation
(c) Standard Deviation
(d) Co-efficient of Variation, Coefficient of Quartile Deviation
- Correlation and Regression
(a) Scatter diagram
(b) Karl Pearson’s Coefficient of Correlation
(c) Rank Correlation
(d) Regression lines, Regression equations, Regression coefficients
- Index Numbers- Uses, Problems and Methods of construction
- Time Series Analysis
(a) Moving Average Method
(b) Method of Least Squares
(a) Independent and dependent events; Mutually exclusive events
(b) Total and Compound Probability; Bayes’ theorem; Mathematical Expectation
- Theoretical Distribution
(a) Binomial Distribution, Poisson Distribution
(b) Normal Distribution
