GMAT Exam – Everything You Need to Know

by | Jul 10, 2024 | GMAT

Mike Diamond

Mike Diamond

Ready to ace the GMAT? In this article, we’ll delve into the nuts and bolts of this challenging exam and help you with a solid GMAT preparation strategy. Our goal is to help you feel more confident as you prepare to take the test. It’s likely that you’ve already decided to apply to several MBA programs, all of which require a good GMAT score. So, let’s dive in and get started!  

About the GMAT Exam 

For more than 50 years, the Graduate Management Admission Test (GMAT) has been the leading entrance examination for business school applicants worldwide. In late 2023, the GMAC introduced the shorter GMAT Focus Edition, designed to evaluate the skills that today’s graduate management candidates need to have.

Business schools consider your GMAT scores along with other important factors such as your resume, undergraduate academic record, personal statements and essays,, and letters of recommendation. The GMAT specifically helps them determine if you’re ready to handle the rigorous quantitative and analytical demands of their programs.

While you don’t need to be an expert in mathematics or logical reasoning before applying, the GMAT allows schools to ensure you have a solid foundation and an approach to knowledge that will permit you to thrive in their challenging academic environment.

What is the new GMAT Focus Edition?

The GMAT was replaced by the new “Focus Edition” on November 7, 2023. From February 1, 2024, the only version of the GMAT Exam available for you to take is the GMAT Focus Edition. With only one version of the exam available, GMAC is transitioning back to using the ‘GMAT Exam’ name from July 1, 2024, onwards.

Be aware! The scoring has changed on the new GMAT (see below), and so admissions statistics from previous years won’t reflect the new scoring. 

According to GMAC, the new version of the GMAT Exam aims to focus on the critical reasoning and data literacy skills that are essential for success in the modern business environment. This means there will be more emphasis on critical thinking, problem-solving, and data analysis skills in the test content. Practically, the exam is still testing the same skills in largely the same way, so that while there are strategic considerations to this new exam, the underlying approach to achieving remains the same.

GMAC collaborated with business school professionals from around the world to redesign the exam. They also conducted In-depth concept testing with candidates from diverse backgrounds to ensure the exam’s effectiveness.

It’s important to note that the GMAT’s fundamental purpose hasn’t changed with the introduction of the GMAT Focus Edition. The new version is simply an updated and revised version of the exam that aims to better assess the skills most relevant to business school success. Therefore, the skills needed to perform well on the old GMAT will largely remain the same for the GMAT Focus Edition.

What is on the GMAT? 

The GMAT exam is designed to assess your analytical thinking and quantitative reasoning abilities, under the pressure of a time-constrained environment. It evaluates your capacity for strategic and logical thought, particularly quantitative, logical, and data-centric issues.

The GMAT  is divided into three sections, each designed to measure a blend of interrelated skills through multiple-choice questions. These sections are the Verbal, Quantitative, and Data Insights segments. Additionally, the test includes an optional 10-minute break and allows the flexibility to tackle the sections in any order you prefer. 

Section Duration Number of Questions What’s Tested (Problem Types)
Quantitative Reasoning 45 mins 21 
  • Problem Solving (Algebra and Arithmetics)
Verbal Reasoning 45 mins 23
  • Critical reasoning
  • Reading Comprehension
Data Insights 45 mins 20 
  • Multi-Source Reasoning
  • Graphical Interpretation
  • Two-Part Analysis
  • Table Analysis 
  • Data Sufficiency

GMAT Exam Structure

Data Insights Section

The GMAT has undergone a significant change with the introduction of a new section called Data Insights. This section amends the Integrated Reasoning section of the old GMAT with Data Sufficiency questions formerly located in the Quantitative section. The Data Insights section is designed to measure a newly calibrated digital and data literacy dimension by leveraging these question types. Having been calibrated over the past ten years of testing, Data Insights is an essential component that measures your ability to analyze and interpret data, which is highly relevant in today’s business environment.

The Data Insights section consists of 20 questions that assess how different sources and types of information relate to one another and how they can be used to make informed decisions. You are allowed to use an on-screen calculator while working on this section, though we don’t recommend using it. The Data Insights section is adaptive.

The question types you’ll find in this section include:

  • Data Sufficiency: Measures your ability to analyze a quantitative or logical problem, recognize relevant data, and determine when there is enough data to solve the problem.
  • Multi-Source Reasoning: Measures your ability to examine data from multiple sources, including text passages, tables, and graphics, and to carefully synthesize the information to answer multiple questions.
  • Table Analysis: Measures your ability to sort and analyze a table of data to determine what information is relevant or meets certain conditions.
  • Graphic Interpretation: Measures your ability to interpret information presented in a graph or other graphical image to discern relationships and make inferences.
  • Two-Part Analysis: Measures your ability to solve complex problems involving both quantitative and verbal reasoning.

Quantitative Reasoning Section

The GMAT Quantitative Reasoning section is designed to assess the examinee’s comprehension of basic arithmetic and elementary algebraic principles, and their ability to apply that knowledge to solve complex problems. Note that the understanding of these principles is only the first step, the GMAT is testing how you use them.

The new section comprises 21 Problem-Solving questions and has been reduced to 45 minutes. Data Sufficiency questions have been removed from this section and added to the Data Insights Section. Additionally, geometry questions have been eliminated from the GMAT Focus Edition.

It is still prohibited to use calculators in this section. 

Verbal Reasoning Section

The GMAT Verbal Reasoning section tests skills in understanding written material, analyzing arguments, and logical reasoning. 

The section includes 23 questions covering Reading Comprehension and Critical Reasoning topics. Sentence Correction questions are no longer t a part of this section anymore. 

  • Reading Comprehension questions test a candidate’s ability to understand longer, complicated texts, infer relationships between significant points, make inferences, and follow the development of quantitative concepts. The questions will assess specific reading skills such as identifying the main idea, supporting ideas, inferences, application, logical structure, and style.
  • Critical Reasoning questions will evaluate a candidate’s ability to assess and formulate arguments, and to evaluate a logical plan of action. These questions are based on short, dense reading passages, typically under 100 words, with a question that requires the candidate to select one of five answer options that either:
    • Develop the conclusion of the argument presented
    • Strengthen or weaken the presented argument
    • Explain why the presented argument is flawed

The questions do not require any subject matter expertise.

Expert tip: Choose the order of the exam based on your comfort levels. Most people like to begin with their most challenging section so they can optimize their performance by tackling the difficult section while their brain is still at its sharpest. Others may opt to start with a more comfortable section to get into a “flow” state before tackling the sections that they find most challenging or important. Ultimately, the best advice is to experiment and go with what makes you most comfortable, because a strong performance can only come with comfort. Our instructors will advise you on the best choice for you based on your performance during your preparation.

GMAT Scoring 

The GMAT Exam scores your skills in each of the three sections: Quantitative (Q), Verbal (V), and Data Insights (DI), and then combines them into your overall score that can range from 205 to 805 in increments of 10 points. Each individual section is scored between 60 and 90, with single-point increments. If you take the exam multiple times, you can choose the most favorable score to send to your prospective schools.

What’s a Good GMAT Score?  

Many people often ask us what is considered a good GMAT score and how they can achieve it. However, the answer to this question varies, depending on the MBA program requirements and your individual goals. This is complicated by the scoring changes introduced by the new Focus Edition.

The short answer is that for the most competitive programs (M7, Ivy League) most candidates aim to get a 700+ (old scoring) or 645+ (new scoring). These scores are equivalent from a percentile basis, representing approximately the top 10% of test takers.

We aim to help our clients obtain elite GMAT scores well into the 700s to enable them to qualify for MBA scholarships and compete for top programs. To determine the score you need, select the programs you plan to attend and examine their MBA class profile. Our admissions consultants can also provide guidance in this regard depending upon your academic and professional achievements.

In case you are wondering what a 700 GMAT score can do for you, keep reading!

GMAT Cost

The cost to sit the GMAT exam is $275. This price includes sending your results to up to five schools of your choice. All additional score reports past the first five schools require a $35 fee per institution. 

When to Take the GMAT?

You can take the GMAT test almost anytime you want, depending on the availability of dates in the test center(s) you have chosen. You can also take the GMAT from home, but we advise against this. 

There are restrictions if you’re retaking the exam. After an attempt, you must wait 16 calendar days, and you’re limited to five times within any continuous rolling 12-month period (365 days), and eight lifetime attempts. Fortunately, our clients never need this many exams to achieve their desired scores.

If you have any questions about the GMAT Exam or want to know more about Apex’s test preparation services, we invite you to book a 30-minute complimentary call. Our team is dedicated to helping you achieve your business school goals, and we are always happy to assist you in any way possible. We will also keep you informed about any updates on the GMAT Exam as soon as they become available. 

FAQs About the GMAT Exam

How long is the GMAT Exam? 

The GMAT Exam lasts for 2 hours and 15 minutes, with an optional 10-minute break included. It consists of a total of 64 questions. Test-takers who are eligible can receive extended time accommodations of 1.5x and 2x. It is recommended that you arrive at the test center at least 15 minutes before the start of the exam.

How far in advance should I take the GMAT Exam? 

Prospective business school applicants are usually recommended to take the GMAT at least two months before the application deadline of their intended program. Many business schools follow a rolling admissions process, where they accept applications during three specific periods each year:

  • The first round deadline is in September.
  • The second round deadline is in January.
  • The third round deadline is in April.
  • Please note that some schools have four rounds of admissions.

Check the application deadlines for the top 50 MBA programs here.

Since GMAT scores remain viable for 5 years, many people choose to take the GMAT well in advance of their plans to apply to graduate school.

Is the GMAT Exam hard?

The GMAT is considered difficult due to its complex question types, strict time constraints, and adaptive nature. Many test-takers face challenges with higher-order reasoning skills and test anxiety. However, with proper preparation and strategies, like those offered by Apex, achieving a high score is achievable for most people.

Here’s a take from our Director of Curriculum Development, Mike Diamond.

“It’s helpful to think of the GMAT like a marathon. Just about everyone in reasonable health is capable of running a marathon or getting a 700+ score, but few ever do. It comes down to desire, the right training, and dedication to the process.”

What is the purpose of the GMAT Exam? 

The GMAT is a standardized assessment that assesses a candidate’s mathematical, verbal, and logical reasoning skills. More deeply, it examines your creative problem-solving and critical reasoning skills under time pressure to rank you among your peers. It is primarily used by business schools as a crucial criterion for admission into graduate business programs such as MBA, Master of Accountancy, and Master of Finance.

Is GMAT accepted only for MBAs?

The Graduate Management Admission Test (GMAT) is a specialized entrance exam designed for students aspiring to attend graduate business school. A GMAT score is commonly required as part of the application process for business-related programs such as the MBA, Master of Accountancy, Master of Finance, and Masters and PhD programs in Management.