CERTIFIED CORPORATE

FP&A PROFESSIONAL
®

Defining the Standard of Excellence in Business Planning,

Budgeting and Forecasting

Examination Preparation Guide

— The Examination — Test Taking Tips

— Recommended Study — Sample Test Questions
Plan Development and Answer Key
— Recommended Study
Strategies
Testing Windows

Offered in 60-day testing windows for greater flexibility and convenience to candidates!

Testing Window Early Deadline* Final Deadline**

August/September 2018 May 11, 2018 June 22, 2018

February/March 2019 November 16, 2018 December 14, 2018

* Submit your application by this date and save $100 on the final deadline fee. Only for new applications.
**Applications received after the final deadline will automatically be deferred to the next available testing window.
For eligibility requirements and an application, please see the Certification Candidate Guide.

For additional information please visit www.FPAcert.org or call +1.301.907.2862 between

8:30 a.m. and 5:00 p.m. ET, Monday through Friday.

This edition of the FP&A Copyright © 2015, Association for These materials are protected The FP&A examination has been
Examination Preparation Guide Financial Professionals, Inc., by United States Copyright Law, developed in collaboration with
supersedes all previous editions. Bethesda, Maryland, USA. International Copyright Laws and Pearson VUE of Bloomington, MN.
Revised © 2017 All rights reserved. International Treaty Provisions.

AFP, Association for Financial Professionals, the AFP logo, FP&A, Financial Planning & Analysis Professionals are registered trademarks of the Association for Financial Professionals. ©7/15

Certified Corporate FP&A Professional Examination Preparation Guide | ii

Study Strategies and Test Taking Tips

The following strategies and test taking tips are provided to help you better prepare for the
FP&A exam.

Please refer to the Rules and Regulations on the FP&A website (www.FPAcert.org/Rules) for
important information on scheduling your exam and what to expect once you arrive at the test
center. Regardless of how well you study for the exam, your efforts will go unrewarded if you do
not fully comply with exam scheduling and test center admission requirements.

The Association for Financial Professionals® (AFP) wishes you the best in your efforts to prepare
for the exam.

The Examination
The FP&A exam consists of two parts — Part I and task-based simulations. Part II will have 90 multiple-choice
Part II — that require a mastery of the critical skills, questions and 35 task-based simulations.
knowledge and abilities involved in the corporate financial
TBS questions will all have four areas — an area for the
planning & analysis function. The parts may be taken
problem statement, an area for the answer, an area for
together or separately. Each part contains questions in
the stimulus material, data tables, etc. and an open
several different areas of expertise known as knowledge
spreadsheet work area. You can use any portion of the
domains. These domains can be found on our website:
worksheet area to calculate your answer(s). You can
www.FPAcert.org/TestSpecs.
reference or copy the data in the stimulus area. You will
Part I — Financial Acumen is a 125 question computer- enter your answer in the answer box(es) provided. Please
based exam. Part II — Financial Analysis is a 125 question note that none of the spreadsheet cells are locked. It
computer-based exam. The scheduled appointment time is therefore possible to format, change, or delete the
for Part I is 180 minutes, 155 minutes of which will be information in the problem statement, data tables, answer
used to answer the questions presented. The scheduled area, or data set. However, we strongly recommend that
appointment time for Part II is 270 minutes, 245 minutes you avoid doing so. If you inadvertently change this
of which will be used to answer the questions presented. information, you may click on the Reset Problem icon
There will be 25 minutes allotted to both parts of the exam in the upper left corner of the spreadsheet to return to
for the non-disclosure agreement (NDA), exam tutorial and the original problem state. All work performed, answers
post-test survey. provided, and format changes made in the spreadsheet
will be lost when the Reset Problem icon is selected.
There are multiple versions of the test. All versions are
psychometrically equated to provide fairness to all The spreadsheet tool works like many commercially
candidates. The questions will have differing degrees of available spreadsheets. A tool bar on the top border of the
difficulty. There is no penalty for incorrect answers and spreadsheet provides access to the available spreadsheet
both scored and unscored questions will be included on controls.
the exam. Unscored questions are included to gather
All TBS items will contain at least one tab for the problem
data on their validity. While it is predetermined which
itself. This tab contains the areas listed above. Items may
questions will not be scored, candidates will not be able to
contain additional tabs for additional instructions or for
distinguish them from the scored questions.
additional background material. These items may require
There are two types of exam questions: multiple-choice one or more responses. Responses may be free numeric
and task-based simulations (TBS). Multiple-choice items response (where you will enter a value in the answer box)
will appear as in most tests — with a question and multiple or selected response (where you will select an answer from
answer choices. TBS items contain spreadsheets and the a pop up box.) Spreadsheet items are scored as correct or
format will change slightly depending on the contents of incorrect. To be scored as correct, you must place a correct
the item. Examples of TBS questions include items that response in every answer box provided.
ask the candidate to perform a calculation or give a data
table and ask the candidate to perform an analysis. Part I
of the test will have 110 multiple-choice questions and 15

Certified Corporate FP&A Professional Examination Preparation Guide | 3

Study Strategies and Test Taking Tips (continued)

A tutorial of the spreadsheet and a browser version Test Taking Tips

of the spreadsheet is available on the FP&A website
— Upon entering the testing room, immediately agree to
(www.FPAcert.org/spreadsheet). As the spreadsheets
the onscreen non-disclosure agreement (NDA). Failure
on the exam will not have all of the functionality of the
to do so within three (3) minutes of entering the testing
commercially available spreadsheets that candidates use in
room will cause your exam to lock and you will forfeit
their jobs, it is highly recommended that candidates view
your eligibility of that exam part for this window. To
the tutorial and practice tool.
take that exam part during the next window, you will
need to submit a Re-Examination form and pay the re-
examination registration fee.
Recommended Study Plan Development
— If you are unsure about how to use the computer, or if
Allow a sufficient period for studying. Review the knowledge you have any questions about the procedures for the
domains to determine how familiar you are with the exam, ask the testing center administrator before the
content. exam begins.
Identify your “knowledge gaps.” This means that you need — Programmable calculators, phones, smartphones, and
to identify what you do not know. If you are using the PDAs are not allowed. An on-screen spreadsheet will be
AFP Financial Planning & Analysis Learning System™, take provided on the testing computer. This spreadsheet can
the pre-test to identify content areas on which you need be used as “scratch paper” for any needed calculations.
to focus extra study time. With career, family, and other White boards for scratch calculations will also be
demands, you may find that your study time is limited. distributed by the exam proctor.
While a thorough review of the exam content is beneficial,
you will need to devote attention to areas that are less — There is no penalty for incorrect answers, so plan to
familiar to you. answer every question. You are not penalized for guessing.
— After you have agreed to the NDA and the exam has
begun, write difficult-to-remember formulas and
Recommended Study Strategies concepts on your white board for later use.
—D
 etermine a study location that will allow you — Answer questions that are obvious to you first. Mark
uninterrupted study periods. difficult questions to come back to later. Every question,
—C
 reate flash cards or recordings to review exam whether it is a definition or a complicated calculation,
material. This will reinforce your learning. is worth the same number of points. Make your best
selection and/or mark it for later review and move on to
—A
 rrange your study time by the percentage of test
the next question.
questions from each domain (These domains can be
found on our website: www.FPAcert.org/TestSpecs) and — Do not go too fast, and never skim questions or answers.
the amount of information you already know. You may end-up making careless mistakes.
—D
 evelop and share test questions with other candidates — Let your original answer stand unless you are completely
to challenge your knowledge. This will help you sure about the new answer.
“drill down” into the material and acquire a greater — Do not let your work experience dictate how you answer
understanding of some concepts. a question. The exam is testing your knowledge of
—T
 ry to closely simulate an exam experience. We strongly professional standards.
encourage candidates to test themselves in half the — Ignore the other test-takers. Their anxiety can be contagious.
time that will be given during the actual exam. By doing
so, you will allow yourself enough time to go back and — Relax the night before the test and get a good night’s
review questions and answers. sleep. You have studied well in advance, so the night
before the test is time to relax.
—F
 amiliarize yourself with the way the exam questions
are structured and how the test will function from a — Make sure you know exactly where the test center is
technical standpoint. located. If possible, drive to the center the day before
the exam. Be sure to leave yourself plenty of time to get
A tutorial of the spreadsheet is available on the FP&A there on exam day.
website (www.FPAcert.org/spreadsheet).

Certified Corporate FP&A Professional Examination Preparation Guide | 4

Sample Test Questions

The following questions are similar to those on the FP&A examination. By reviewing them, you
can familiarize yourself with the types of questions on the examination. These sample questions
do not necessarily reflect the composition of the actual examination in terms of topic area
emphasis, the mixture of calculations, definitions and application type questions or the level of
difficulty of actual exam questions. The Answer Key can be found after Question 10.

Exam Part I.B Exam Part I.B Exam Part I.A

1. Which type of graphic would be 3. What does internal rate of return 5. Which benchmark can an FP&A
most effective for presenting sales represent? professional calculate based on
that are affected by seasonality? information normally found on a
A. The rate at which net present
corporate annual report?
A. Bubble chart value is negative
B. Line chart B. The rate at which net present A. Return on equity
C. Bar chart value is maximized B. Manufacturing cost per unit of
C. The rate at which net present production
D. Pie chart
value is zero C. Sales per full-time
D. The rate at which net present employee
Exam Part I.A value is minimized D. Human resource expenses to
2. An FP&A professional is sales
researching a competitor’s
Exam Part I.A
financial condition. Which financial
Exam Part II.A
statement is the best source 4. 
The FP&A team at a large
of data for determining the company has been tasked with 6. An FP&A professional wants to
competitor’s ability to repay its implementing an enterprise quantify the strength and direction
debt? resource planning (ERP) system of the relationship between
to streamline budgeting and overhead expenses and employee
A. The competitor’s income
forecasting. Who should the FP&A head count in a company’s
statement
manager collaborate with during business units. What quantitative
B. The competitor’s statement of the requirements stage of the measure should be computed in
retained earnings project? this analysis?
C. The competitor’s statement of
A. FP&A staff, information A. Correlation coefficient
cash flow
technology staff, and B. Standard deviation
D. The competitor’s balance sheet procurement staff
C. Weighted average
B. Business units, FP&A staff, and
D. Confidence interval
information technology staff
C. Business units, procurement
staff, and auditors
D. FP&A staff, information
technology staff, and vendors

Certified Corporate FP&A Professional Examination Preparation Guide | 5

Sample Test Questions

Exam Part II.C Exam Part II.A Exam Part II.B

7. Problem Statement: 9. Problem Statement: 10. Information from a company’s
A company has run a multiple A company’s fiscal year is the income statement for Year 0 is
regression analysis between units calendar year. Total direct costs provided in the table below. The
sold (Y), advertising spent (X1), forecasted for a fiscal year are company is using the following
and sale price (X2), obtaining $150,000 and year-to-date direct assumptions for forecasting
the function: costs at the end of March are purposes:
Y = 30,005 + 0.4(X1) – 0.5(X2) $31,000. Calculate the direct cost
–– Sales are expected to grow at
variance if the spend rate remains
The company has decided to use 2.6% per year.
unchanged throughout the year.
this function to predict future –– Cost of goods sold as a
Drop down choices are “favorable”
sales. How much revenue would percentage of sales is expected
and “unfavorable”
the company generate if it assigns to decrease by 0.5 percentage
an advertising budget of $200,000 points in Year 1 and remain at
and defines the sales price of its that rate through Year 2.
product at $10?
–– All other costs are expected to
grow by 1.5% per year.
Exam Part I.A Based on these assumptions,
8. Problem Statement: calculate the company’s operating
The consumer price index (CPI) income for Year 2 (round to the
was 204.1 in Year 1 and 207.4 nearest dollar).
in Year 2. Calculate the rate of Sales $40,000,000
inflation between Year 1 and Year 2 Cost of Goods Sold $12,000,000
(rounded to two decimal places).
Research & $5,000,000
Development
Sales & Marketing $2,000,000
General & $1,000,000
Administrative
Expenses
Operating Income $20,000,000

Certified Corporate FP&A Professional Examination Preparation Guide | 6

Sample Test Answer Key

1. B 7. Answer: $1,100,000 9. Answer: $26,000 Favorable

Rationale: Calculation as follows: Rationale: In order to arrive at the
2. D solution calculate the annualized
Unit Sold = 30,005 + 0.4 x 200,000 -
3. C amount of direct expenses based on
0.5 x 10
the stated burn rate and month in the
4. B Unit Sold = 30,005 + 80,000 - 5 year. Total direct expenses in 3 months
are $31,000.
5. A Unit Sold = 110,000
Annualized direct expenses will be 12 /
6. A Revenue = 110,000 Units Sold x
3 x 31,000 = $124,000.
$10 per Unit
$150,000-$124,000 =
Revenue = $1,100,000
$26,000 Favorable.
8. Answer: 1.62%
Rationale: The formula to determine
the rate of inflation is equal to the
growth rate in CPI from one year to the
next.
Rate of Inflation = (CPI of most recent
year-CPI of previous year) /CPI of
previous year x 100

10. Answer: $21,443,663

Rationale:
Year 0 Year 1 Year 2
Sales Growth 2.6% 2.6%
Cost of Goods Sold as % of Sales 30.0000% 29.5% 29.5%
Other Costs 1.5% 1.5%

Year 0 Year 1 Year 2

Sales $40,000,000 $41,040,000 $42,107,040
Cost of Goods Sold $12,000,000 $12,106,800 $12,421,577
Research & Development $5,000,000 $5,075,000 $5,151,125
Sales & Marketing $2,000,000 $2,030,000 $2,060,450
General & Administrative Expenses $1,000,000 $1,015,000 $1,030,225

Operating Income $20,000,000 $20,813,200 $21,443,663

About AFP®
Headquartered outside Washington, D.C., the Association for Financial Professionals (AFP) is the professional society that
represents finance executives globally. AFP established and administers the Certified Treasury Professional and Certified
Corporate FP&A Professional credentials, which set standards of excellence in finance. The quarterly AFP Corporate Cash
Indicators serve as a bellwether of economic growth. The AFP Annual Conference is the largest networking event for corporate
finance professionals in the world.
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AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.
FP&A, Certified Corporate FP&A Professional and the FP&A logo are trademarks of the Association for Financial Professionals. ©4/17.