CFM Study Guide 2026
Everything you need to pass the CFM exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📚 CFM Topics to Study (38)
✍️ Sample CFM Questions & Answers
1. What is the difference between fixed costs and variable costs?
Fixed costs (like rent) remain constant within a relevant range regardless of output, while variable costs (like raw materials) change in proportion to production volume.
2. What is a leveraged buyout (LBO)?
An LBO uses significant debt to fund the acquisition, with the acquired company's cash flows and assets servicing and securing the debt.
3. The 'acquisition premium' paid in an M&A transaction is best defined as:
The acquisition premium is the amount above the target's pre-deal market value that the acquirer pays, typically ranging from 20–40% for public company acquisitions, reflecting expected synergies and control value.
4. Which investment is typically used for short-term cash management due to its safety and liquidity?
Treasury bills are short-term US government obligations that offer safety, high liquidity, and a known return, making them ideal for cash management.
5. In standard costing, a favorable variance means:
A favorable variance occurs when actual costs are below standard (budgeted) costs, indicating more efficient performance than planned.
6. What consequence can result from failing to maintain proper regulatory compliance & ethics standards in Certified Finance Manager?
Non-compliance can result in serious consequences including certification revocation, legal penalties, fines, and significant reputational damage.