CMA Foundation

CMA Foundation

First, let’s discuss CMA Foundation, which is the most fundamental and entry-level level of the CMA Course. The Institute of Cost Accountants of India administers this exam, which is inherently offline (ICMAI). For everyone who wants to pursue a career in CMAs, CMA Foundation serves as a starting point.
However, in order to be eligible to take the CMA Foundation exam, a candidate needs to meet certain requirements.
The following are the eligibility requirements:

A student must have graduated from any accredited national or state board or Indian institution with a Class 10 diploma or its equivalent.

A student must have graduated from any accredited national or state board in India with a 10+2 diploma or its equivalent. Nonetheless, a student may also register for CMA Foundation if they are taking the 10+2 test during this session.

The CMA Foundation Exam is open to all candidates who have passed the National Diploma in Commerce Examination administered by the National Council of Higher Education, the All India Council for Technical Education (AICTE), the State Board of Technical Education, which is a body under the All India Council’s jurisdiction, or even candidates who have passed the Diploma in Rural Service Examination administered by the National Council of Higher Education.

The mandatory registration fee for the CMA Foundation is Rs. 4,000, and it must be paid by January 31st of each year for June term years, or July 31st for December session exams. The prospectus has an additional fee of Rs. 250, which is the responsibility of the student. Additionally, the exam fee for the CMA Foundation is Rs. 1200 if the exam centres are located in India; however, if the exam centres are located abroad, the exam fee is US $60, or $60 dollars. Other than this, though, a student needs to include the following list of documents with his application for the CMA Foundation:

An attestation copy of the Class X, or Matriculation Marksheet, from an approved National or State Board of Secondary Education in India is required.

In the event that you wish to present and are awaiting your results, an attested copy of your Class XII Admit Card is required. If not, you must have an attested Class XII Pass Certificate or Marksheet from an approved National or State Board of Secondary Education in India.

Together with his identity card, which will be provided by the CMA Institute, the student must also attach three current, colour passport-size photos of himself, which he must neatly attach to the hard copy of the CMA Foundation registration form.

Additionally, any member of the State Legislative Assembly, Parliament, The Institute of Chartered Accountants of India, The Institute of Company Secretaries of India, The Institute of Cost Accountants of India, or any college principal is required to attestation the aforementioned documents.

 

After going over all of the prerequisites for enrolling for the CMA Foundation course, we will now review the academic areas that are covered in the course.

 

The CMA Foundation course consists of four papers: 1. Fundamental of Economics and Management

2. Accounting Principles

3. Law and Ethics Fundamentals

4. Foundations of Statistics and Business Mathematics

Part A and Part B make up the two sections of the CMA Foundation papers listed above. Here, Part B consists of subjective questions that a candidate must respond to clearly and persuasively, whereas Part A consists of objective questions such as true or false and fill in the gaps.
 
The detailed chapter wise syllabus for each of these subjects is as follows –
 

This paper is divided into two sections ie Section A and Section B. A detailed description of each section is given below.

Section A: Fundamentals of Economics (50 marks)

1. Basic Concepts of Economics
– Definition, Scope, Fundamental Concepts

2. Theory of Demand and Supply
– Demand, Supply and Equilibrium

3. Theory of Production
– Meaning, Factors, Production Function, Law Of Variable Proportion and Returns to Scale

4. Theory of Cost
– Meaning, Cost Function, Cost Curves and Economies of Scale

5. Market
– Significance, Perfect Competition and Imperfect Competition

6. Money
– Definition, Functions, Money Supply Components and Quantity Theory of Money.

7. Bank
– Significance, Commercial Bank, Central Bank, Financial Institutions.

8. Money Market
– Meaning, Structure and Function of Indian Money Market.

Section B: Fundamentals of Management (50 marks)

1. Management Process
– Definition, Management as Science, Art and Profession, Management Principles and Process

2. Management – Concepts – Authority, Power, Delegation Of Authority, Responsibility, Accountability, Leadership and Motivation.

3. Leadership
– Motivation

4. Decision Making
-Concept, Definition, Types, Process and Techniques

 



 

This paper deals with both Financial Accounting and Cost Accounting, and the paper is hence divided into Section A and Section B respectively, with the detailed topics for each section mentioned below.

Section A: Fundamentals of Financial accounting (80 marks)

1. Accounting Basics
– Principles, Concepts, Conventions, Capital & Revenue Transactions, Journal, Ledger, Depreciation Accounting, Rectification of Errors and Bank Reconciliation Statement.

2. Accounting for Special Transactions
– Bills Of Exchange, Consignment and Joint Venture.

3. Preparation of Final Accounts
– Profit making concern (sole proprietorship only), NPO’s

Section B: Fundamentals of Cost Accounting (20 marks)

1. Meaning, Definition, Significance of Cost Accounting, its relation with Management and Financial Accounting, Costs Classification and Cost Sheet Formation.

 

Section A: Fundamentals of Commercial Laws (70 marks)

1. Indian Contract Act, 1872
– Essential elements of Contract, Offer and Acceptance, Void and Voidable Agreements, Consideration, Quasi and Contingent Contracts, Performance, Discharge and Breach of Contract, Remedies for such breach.

2. Sale of Goods Act, 1930
– Definition, Transfer of Ownership, Conditions and Warranties, Performance of Sale Contract, Rights of Unpaid Vendor, Auction Sales.

3. Negotiable Instruments Act, 1881
– Negotiable Instruments, Promissory Note, BOE, Cheque.

Section B: Fundamentals of Ethics (30 marks)

1. Ethics and Business
– Significance and Importance, Ethics and Law, Ethics in Business.

Section A: Fundamentals of Business Mathematics (40 marks)

1. Arithmetic
– Ratio and Proportion, Simple and Compound Interest, Arithmetic Progression and Geometric Progression

2. Algebra
– Set Theory, Permutation and Combination and Quadratic Equations

Section B: Fundamentals of Business Statistics (60 marks)

1.Statistical Representation of Data
– Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution via Histogram, Frequency Polygon Curve, Ogive and Pie-chart.

2.Measures of Central Tendency and Dispersion
– Mean, Median, Mode, Mean Deviation Range, Quartiles and Quartile Deviation etc.
– Karl Pearson and Bowley’s Coefficient of Skewness

3.Correlation and Regression
-Scatter diagram, Karl Pearson’s Coefficient of Correlation Regression lines, Regression equations, Regression coefficients

4. Probability
Independent and dependent events, Mutually exclusive events, Total and Compound Probability, Baye’s theorem etc.

 



The CMA Foundation Exam is available in both Hindi and English, and while there is no negative marking, it is appropriate to note that the exam is easier than the CMA Intermediate and CMA Final. The passing requirements for the CMA Foundation exam are as follows: a candidate will be deemed to have passed the exam only if he receives at least 40% in each of the four papers and a cumulative aggregate of 50% for all four papers. The only way to pass the CMA Foundation test is to study practically and go over every topic in detail.