CGMA Exam - Case Study Guide

chapter 2 Understanding competencies

Chapter learning objectives

• After completing this chapter, you should be able to recognise how the key management accounting knowledge areas can be interpreted in terms of the competencies required for the CGMA case study exam.

1 Management accounting knowledge areas

The CGMA exam combines the knowledge across three main areas of strategic management accounting:

• Strategy development and implementation

  – How to formulate organisational strategy and provide the overall context for its effective implementation

• Governance and risk management

  – How to identify, classify, evaluate and manage risks that could impede the implementation of strategy

• Corporate financial strategy

  – How to evaluate and source the financing required to implement strategy and consider the sources from which such financing could be obtained.

Let us start by reviewing the body of knowledge and topics covered in these three strategic management accounting areas.¹

Strategy Development and Implementation

Interacting with the organisation’s environment

You should understand and be able to apply the following:

• The External Environment

  • Influence and impact of the external environment on an organisation and its strategy

  • The key environmental drivers of organisational change

  • Strategic analysis and evaluation methodology and tools; for example, PEST, Five Forces, Product Lifecycle, Porter’s National Diamond

  • External demands for sustainability and corporate social responsibility ...