Cma Part 1 Volume 2 Sections D E

This section bridges Volume 2 (strategy) with the compliance side of accounting.

Segregation of Duties (SOD): No single person should have custody of an asset, authorization for that asset, and record-keeping for that asset.

Control Activities: Approvals, reconciliations, physical security, documentation.

Just as COSO governs ERM, COSO also provides the Internal Control—Integrated Framework. This is non-negotiable knowledge. The five components of internal control (mnemonic: CRIME): cma part 1 volume 2 sections d e

Critical nuance: The Control Environment is the foundation. If the control environment is weak (e.g., management overrides policies), no other control will be effective. This section bridges Volume 2 (strategy) with the

Candidates must be able to select and calculate the appropriate costing system. Segregation of Duties (SOD): No single person should

Hybrid Systems: Operation costing and backflush costing.

Pricing is the meeting point of accounting and marketing.

Elasticity of Demand: Know the difference between elastic (price sensitive) and inelastic (price insensitive) goods.

This area tests the allocation of indirect costs.

Smaller but heavily tested – often high-scoring if memorized well.