00:00Yes, I passed part 1, now only part 2 left.
00:04What? Part 1 first? No, that's basic stuff.
00:07I went straight to part 2 because that's harder.
00:10But doesn't part 1 build the foundation for part 2?
00:12Not really, it's just cost accounting and budgets.
00:15I can handle strategic finance without that also.
00:18Rahul, I think that's exactly why we're strongly.
00:22The difference between Priya and Rahul wasn't intelligence.
00:25It was how they both planned for their exams.
00:27And I'm making this video so that you don't face the same fate as Rahul did.
00:31I'll be breaking down both USCMA part 1 and USCMA part 2,
00:36the actual syllabus, the real difficulty difference,
00:39and exactly how to plan your attempts strategically.
00:41By the end, you'll know which part to start with based on your background
00:45and how much time each part actually needs.
00:48If you're confused about where to start or how to sequence these exams,
00:52watch this video till the very end.
00:54USCMA part 1 is all about financial planning, performance, and analytics.
00:59It has six different sections, each testing different skills.
01:03First, external financial reporting,
01:05where you learn and understand financial statements,
01:08GAAP or generally accepted accounting principles, and consolidations.
01:13Second, planning, budgeting, and forecasting,
01:16which teaches you budget building, variance analysis, and flexible budgets.
01:20It's a calculation-heavy section, but a predictable one.
01:24Third, performance management, covering KPIs, balance scorecards,
01:28and divisional performance.
01:30This section is pretty straightforward if you grasp the concepts well.
01:35Fourth, cost management,
01:37where you learn everything about activity-based costing,
01:40job costing, and process costing.
01:42This is a very formula-driven section.
01:44The fifth section is internal controls,
01:47covering stuff related to financial controls,
01:50cost controls, risk controls, compliance, audits, and governance.
01:54Things that are crucial for any enterprise.
01:57And finally, technology and analytics.
02:00The world is running after analytics,
02:02because it adds value to the prediction.
02:04And because of that,
02:06businesses look for professionals not just with accounting expertise,
02:09but also have skills in data analytics and using technology.
02:14This part isn't about memorization.
02:16It's about application.
02:18And what most people get wrong about part one,
02:21is that they think it's just another accounting exam.
02:24Well, it's not.
02:25CMA doesn't test if you know definitions.
02:28It tests if you can apply concepts to messy business scenarios or not.
02:33That variance question isn't theoretical.
02:36It's about diagnosing an actual operational problem.
02:38If we talk about the USCMA part two,
02:41it is all about strategic financial management.
02:44And that is where most people struggle.
02:46This part also covers six sections.
02:49First, financial statement analysis,
02:52which covers ratio analysis, trend analysis, and investment decisions.
02:57Second, corporate finance,
02:59covering topics like capital structure,
03:01dividend policy, M&A, and working capital.
03:04This section separates memorizers from thinkers.
03:07Third is decision analysis, the biggest section.
03:11It consists of CVP analysis,
03:13make or buy decisions, relevant costing, and pricing.
03:17Every question in this section is a strategic scenario.
03:21The fourth one, which is the risk management section,
03:24covers derivatives, hedging, enterprise risk management, etc.
03:28It is conceptually very dense section.
03:31The fifth section is investment decisions,
03:33covering MPV, IRR, capital budgeting, and much more,
03:37where you evaluate projects and compare alternatives.
03:40And the last section, professional ethics,
03:42the gray area section,
03:44which requires you to apply IMA standards to complex dilemmas.
03:48Part two is harder for most people
03:50because it's strategic, not just technical.
03:53You have to think like a CFO,
03:54not just do calculations.
03:56Questions are longer, scenarios are complex,
03:59and you need to integrate multiple concepts simultaneously.
04:03Now, coming to the question,
04:04which is harder, part one or part two?
04:06Statistically, part two has a lower pass rate
04:09because it requires integration of concepts.
04:11In USCMA part two,
04:12you can't learn topics in isolation.
04:14And the essays demand strategic analysis,
04:17not just calculations.
04:18We have made a detailed video on the USCMA certification,
04:21covering every minute detail about both parts,
04:24when the exams take place,
04:26and the cost involved as well.
04:27You can watch that video by clicking on the eye button.
04:30Now, if we talk about how to plan for the USCMA,
04:33here is how you should do it.
04:34Start with part one.
04:36It builds your foundation.
04:37Budgeting and cost management from part one
04:39feed directly into part two's decision analysis.
04:43Without that base,
04:44part two becomes unnecessarily difficult.
04:47The timeline should ideally be
04:48three to four months for part one,
04:50with 15 to 20 hours of study time weekly.
04:53Don't rush.
04:54Take a two-week break after passing part one.
04:57Then prepare for part two over the next four to five months.
05:00My suggestion would be
05:01not to take more than six months gap between both parts.
05:04Longer gaps means you forget
05:06the part one content which you will essentially require for part two.
05:10One hack.
05:11If your daily work involves financial reporting or cost accounting,
05:15do part one while that knowledge is fresh.
05:18If you are in FP&A dealing with strategic decisions,
05:22part two might align better with your work.
05:24Know your strengths well.
05:26Now, if you have watched the video till here
05:28and are considering pursuing the USCMA,
05:31why not do it to the best?
05:32Other prep providers might teach you just theory.
05:35But our USCMA certification preparation program,
05:38in collaboration with KPMG in India,
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05:42through real-world case studies and business scenarios.
05:45This is exactly what employers are looking for
05:47in today's strategic finance professionals.
05:50Don't wait.
05:51Click the form in the description below,
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