WHAT IS CMA
The CMA programme, short for Cost Management Accounting is one of the most viable programmes in the finance sector. For someone who dreams to make it big in the management accounting field, the CMA course would be a great choice. In recent times, the programme has become a quite popular choice amongst commerce students or the ones aspiring to enter the commerce field.
Cost Management Accounting is a certificate programme designed to train students for working in different industries and corporate functions. In India, the credentials of the CMA course are issued by the Institute of Cost Accountants of India (ICAI). The programme mainly focuses on cost management, valuation issues, financial statement analysis, working capital policies, external financial reporting, etc.
Following are a set of skills that candidates get to learn through this programme.
- Expertise in Financial Accounting
- Strategic Management
- External Financial Reporting
- Internal Controls
- Performance Management
- Cost Management
- Expertise in Management Accounting
- Profitability Analysis
- Planning and Budgeting
- Risk Management
- Investment Decision
ROLE & SCOPE OF CMA
A CMA is a person who performs services involving costing, pricing of goods and services, verification or certification of Cost Records and Taxation, especially in Indirect Taxation. Unlike pure accounting professionals, the demand for CMA cuts across functions in all organizations.
Earlier only Public Sector Undertaking (PSU) Companies offered job to CMAS, but in the last few years trends have changed. Now almost all enterprises/ companies show their interest in giving job to CMAs. It has shown in Institutes’ campus placement where, apart from PSUs, companies such as ITC, ICICI Bank, IDBI Bank, Wipro, Ashok Leyland, Ford etc. are regular recruiters.
Nowadays, with multi-product ventures taking place, it has become important to know and understand the exact cost of every product and service at different stages to minimize the expenditure incurred on them and to ensure optimum utilization of resources. This is where the role of Cost Accountant comes and that is the reason behind increase in demand of the CMAS.
As mention above, a CMA is an ALLROUNDER rather than mere a batsman or a bowler, -apart from cost related assignments, we find CMAs doing jobs as Manager – Taxation, Manager – Accounts, Manager – Credit etc in many companies. Many CMAs are holding top management positions, viz., Managing Director, Finance Director, Financial Controller, Cost Controller, Chief Internal Auditor, CEO, CFO etc.
Besides this, the Institute of Cost Accounts (ICAI) has entered into MoUs with many accounting bodies across the Globe which is creating job opportunities for CMAs abroad too.