Economics forms the basis of growth of any country, organization or society. Hence, a professional accountant must be well-versed with the fundamentals of economics and management which serve as a foundational block during times of crucial decision-making. This three-hour written paper aims to test a student’s ability to understand the basic concepts of economics at the macro and micro level and to comprehend the basic principles of management. With the objective of helping students prepare for the CMA Foundation, this article will dive deeper into the subject of ‘Fundamentals of Economics and Management’.
Here’s what you will read next:
- CMA Foundation Fundamentals of Economics and Management Syllabus
- How to study for CMA Foundation Fundamentals of Economics and Management
- How to score well in CMA Foundation Fundamentals of Economics and Management
- Online resources to prepare for CMA Foundation Fundamentals of Economics and Management
CMA Foundation Fundamentals of Economics and Management Syllabus
To kickstart your preparation, you must first go through the syllabus and the weightage assigned to each topic. Here’s a quick summary:
Section A: Fundamentals of Economics
Basic concept of Economics
Forms of market
Money and Banking
Section B: Fundamentals of Management
- The MCQs and objective type compulsory questions will be of total 60 marks (Fundamentals of Economics- 30 marks and Fundamentals of Management- 30 marks).
- Subjective optional questions will be of total 40 marks (20 marks for both the sections). You will have to answer four out of seven questions for each section.
How to study for CMA Foundation Fundamentals of Economics and Management: 10 Handy Tips
- Create a timetable keeping your strengths and weaknesses in mind. Allocate a certain number of days to each topic and follow through.
- While studying theory, use story-building memory techniques to form associations between several points. This technique encourages the reader to imagine a whacky story in his/her head and then link different points to different stages of the story- this could be super-useful for boosting retention.
- Understand the concept of supply-demand thoroughly. This is the building block for all other concepts in economics.
- Start developing the habit of reading and watching economic and financial news- this will help you understand the practical applications of what you study.
- Go through the study material provided by ICMAI to understand the kind of answers expected by the examiner. The marks you score also depend on the adherence to the language used by the institute in its content.
- Write all the formulae on a separate page. This synopsis can be used for revision on the D-day.
- Study the questions given in the study material thoroughly. Questions asked in the exam follow the same pattern.
- You can also refer to online videos for studying at your own pace and later on for revision.
- Attempt mock papers to assess yourself and keep reviewing topics that you are weak at.
- Divide each topic into smaller subtopics and take short breaks after every 1-2 topics to give your brain enough time to relax, absorb and assimilate new information.
How to score well in CMA Foundation Fundamentals of Economics and Management
- Do not rush through as soon as you receive the paper. Go through all the questions and decide which ones you want to attempt first. Allot time to questions based on the marks they carry.
- Attempt multiple-choice questions first. Using a method of elimination works quite well for this paper.
- In subjective optional questions, always answer the question that you are most confident about first.
- All subjective answers should have a coherent flow. Ensure you divide your answer into several points for easy readability.
- Connecting answers to the basic principles of supply and demand usually helps in arriving at the answer.
- Underline keywords in your subjective answer.
- Try to give examples and illustrations wherever possible.
- Avoid using short forms or abbreviations.
Online resources to prepare for CMA Foundation Fundamentals of Economics and Management
Syllabus and Study Notes:http://icmai.in/upload/Students/Syllabus2016/Foundation/Paper-1.pdf
Mock Test Paper – Questions
Mock Test Paper – Answer
- Video lectures by ICMAI: http://icmai.in/studentswebsite/Foundation-Papers.php
- Guidelines for Students: https://icmai.in/studentswebsite/exam_procedure.php
- Question Paper December 2018: http://icmai.in/upload/QuestionPaper/syllabus2016/Dec18/Paper1.pdf
You can watch a few lectures on CMA Foundation and see if you would want to consider subscribing to our video series for a better shot at clearing the CMA examination.