Flashcards · Finance & Accounting
CMA Flashcards
Free flashcards for CMA (IMA): flip each card to reveal the definition. Built from the CMA (IMA) glossary as a study aid, these are concept checks, not real exam questions.
1 / 20
Click the card (or press Space) to flip · use Prev/Next to move
All 20 terms
- Management accounting
- Information used internally for planning and decisions.
- Contribution margin
- Sales revenue minus variable costs.
- Break-even point
- The sales level where profit is zero.
- Fixed cost
- A cost that does not change with output.
- Variable cost
- A cost that changes with output.
- Standard cost
- An expected cost used as a benchmark.
- Variance
- The difference between actual and expected.
- Budget
- A financial plan for a future period.
- Forecast
- An estimate of future financial outcomes.
- ROI
- Return on investment.
- Residual income
- Income above a required return on capital.
- NPV
- Net Present Value of a set of cash flows.
- IRR
- The discount rate that makes NPV zero.
- Working capital
- Current assets minus current liabilities.
- Cost of capital
- The required return to fund the business.
- Internal control
- Processes safeguarding assets and reporting.
- Decision analysis
- Choosing among alternatives using relevant data.
- Risk management
- Identifying and mitigating financial risks.
- Performance management
- Measuring and improving organisational performance.
- Relevant cost
- A future cost that differs between alternatives.