Wiley CMAexcel LEARNING SYSTEM EXAM REVIEW 2015 PART 1: Financial Reporting, Planning, Performance, and Control * Covers all 2015 exam changes * Includes access to the Online Test Bank, which contains over 900 multiple-choice questions * Multiple-choice question feedback helps CMA candidates focus on areas where they need the most work * Prepare for the actual CMA exam with Section Practice Tests and a cumulative Part 1 exam * Assess your progress with knowledge check questions/answers and sample essay questions * Looks at basic budgeting concepts and forecasting techniques * Deals with the methods of comparing actual financial performance to the budget * Helps candidates prepare a solid study plan with exam tips Feature section examines the topics of External Financial Reporting Decisions; Planning, Budgeting, and Forecasting; Performance Management; Cost Management; and Internal Controls Based on the CMA body of knowledge developed by the Institute of Certified Management Accountants (ICMA(R)), Wiley CMAexcel Learning System Exam Review 2015 features content derived from the exam Learning Outcome Statements (LOS). Passing the CMA exam on your first attempt is possible. We d like to help. IMA(R), the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA(R) (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 65,000 members in 120 countries and 300 local chapter communities. IMA provides localized services through its offices in Montvale, NJ, USA; Zurich, Switzerland; Dubai, UAE; and Beijing, China. For more information about IMA, please visit www.imanet.org.

Table of Contents:

Acknowledgments of Subject Matter Experts ix

Candidate Study Information xi

How to Use the Wiley CMAexcel Learning System xv

Create a Study Plan xix

Introduction 1

Section A External Financial Reporting Decisions 3

Topic 1: Financial Statements 25

Topic 2: Recognition, Measurement, Valuation, and Disclosure 45

Practice Questions: External Financial Reporting Decisions 203

Section B Planning, Budgeting, and Forecasting 211

Topic 1: Strategic Planning 233

Topic 2: Budgeting Concepts 273

Topic 3: Forecasting Techniques 291

Topic 4: Budgeting Methodologies 307

Topic 5: Annual Profi t Plan and Supporting Schedules 319

Topic 6: Top-Level Planning and Analysis 347

Practice Questions: Planning, Budgeting, and Forecasting 365

Section C Performance Management 375

Topic 1: Cost and Variance Measures 391

Topic 2: Responsibility Centers and Reporting Segments 425

Topic 3: Performance Measures 437

Practice Questions: Performance Management 465

Section D Cost Management 475

Topic 1: Measurement Concepts 495

Topic 2: Costing Systems 521

Topic 3: Overhead Costs 553

Topic 4: Supply Chain Management 571

Topic 5: Business Process Improvement 591

Practice Questions: Cost Management 609

Section E Internal Controls 621

Topic 1: Governance, Risk, and Compliance 637

Topic 2: Internal Auditing 661

Topic 3: Systems Controls and Security Measures 675

Practice Questions: Internal Controls 697

Essay Exam Support Materials 703

Essay Exam Study Tips 707

Examples of Essay Question Answers 709

Practice Essay Questions and Answers 719

Answers to Section Practice Questions 801

Appendix A: ICMA Learning Outcome Statements—Part 1 869

Bibliography and References 885

Index 889