IMA CMA-FINANCIAL-PLANNING-PERFORMANCE-AND-ANALYTICS Online Practice Questions and Exam Preparation

IMA CMA-FINANCIAL-PLANNING-PERFORMANCE-AND-ANALYTICS Online Questions & Answers

• Question 1:

  Redstone, inc's budget indicated that it expected to sell 30.000 units of Product A and 90.000 units of Product B Budgeted unit contribution margins were $4 for Product A and $22 for Product B Redstone's actual sales were 28.000 units of Product A and 72.000 units of Product B with actual unit contribution margins of $3 25 and S23 50. respectively. Redstone's sales-mix variance was _____

  A. $54,000 unfavorable
  B. $60,750 unfavorable
  C. $64,800 unfavorable
  D. $78,000 unfavorable.
  A. $54,000 unfavorable

• Question 2:

  MJC Co. is considering adopting a variable costing system using variable costing rather than absorption costing will be more advantageous to MJC because the variable costing system ______

  A. more readily provides data needed for cost/volume/profit analyses done by management
  B. focuses on gross profit as the best indicator of a company's ability to cover its expenses
  C. assigns all costs of manufacturing to products in order to properly match cost of production with revenues
  D. allows the financial statements released to internal users to agree with the GAAP financial statements issued for external use
  A. more readily provides data needed for cost/volume/profit analyses done by management

• Question 3:

  Which one of the following statements best describes data governance-

  A. The union of data quality, data management, data policies, and risk management
  B. A process of securing all company data points, both structured and unstructured
  C. The convergence of accounting data, finance data and information technology
  D. Performance of data-based audits on a continuous basis
  A. The union of data quality, data management, data policies, and risk management

• Question 4:

  Faxton and Rexford are competitor in the same industry Faxton utilizes an incentive program mat focuses solely on net income Rexford uses customer service and employee development in addition to net income in its incentive program. Over time. Faxton can be expected to ______

  A. have higher sales growth than Rexford due to management s strong focus
  B. be less likely to misstate earnings due to the importance of earnings to management
  C. be more profitable than Rexford initially Put lose this advantage
  D. consistently be more profitable than Rexford due to not funding training programs
  B. be less likely to misstate earnings due to the importance of earnings to management

• Question 5:

  A company recently used 500 direct labor hours to manufacture ten units of a new product, if the company employs the cumulative average-time learning model with a 90% learning curve, the number of direct labor hours the company would expect to use to produce the next ten units of this product is ______

  A. 500
  B. 475
  C. 450
  D. 400
  D. 400

• Question 6:

  Which statement below best describes the relationship among a company's organizational structure, policies. objectives and the effectiveness of the control environment-

  A. The policies, organizational structure, and objectives set the foundation tor the internal control components and provide discipline and structure
  B. Management can determine the organizational structure, policies and objectives to create the control environment after the risks are identified
  C. The control activities have more influence on the control environment than the organizational structure policies and objectives
  D. The control environment often Is completely Independent and distinct from the organizational structure policies. and objectives
  A. The policies, organizational structure, and objectives set the foundation tor the internal control components and provide discipline and structure

• Question 7:

  A manufacturing company is considering implementing activity-based costing. Which one of the following statements is a valid consideration when making this change-

  A. Activity-based costing systems may not replace traditional costing systems used for prepar.ng external financial statements.
  B. Companies that make diverse products are least likely to benefit from activity based costing
  C. An activity-based costing system is more costly to maintain than a traditional costing system
  D. In an activity-based costing system, all costs including idle capacity costs, are allocated to products, customers and other costing objects
  C. An activity-based costing system is more costly to maintain than a traditional costing system

• Question 8:

  A company reported that its shareholders' equity decreased in the recent year. This could occur if

  A. dividends paid were less than net income.
  B. dividends paid were greater than net income
  C. new common stock was sold for greater than par value
  D. new common stock was sold for less than par value
  B. dividends paid were greater than net income

• Question 9:

  La Salle Company purchased 2.150 shares of Barry Chocolates Corporation's common stock at $25.16 per share on November 17 of last year. The broker's commission was $85. The shares were sold on January 11 of the current year for $27.50 per share. The broker's commission on the sale was $76 Barry declared and paid dividends of $0 50 per share on March 26. June 25. September 25. and December 23 during the last two years La Salle's current year income statement would reflect a realized gain of ______

  A. $4,870
  B. $4,946
  C. $5,022
  D. $5,031
  A. $4,870

• Question 10:

  The purchasing team manager of a large car retailer is responsible for purchasing cars for the Pest price and managing his team's payroll costs. Once the car is purchased the sales team manager is responsible for setting the prices. Which one of the following statements best describes the team s responsibilities'

  A. The purchasing team is an investment center and the sales team is a revenue center
  B. The purchasing team is a cost center, and the sales team is an investment center.
  C. The purchasing team is an investment center and the sales team is a profit center
  D. The purchasing team is a cost center, and the sales team Is a revenue center
  D. The purchasing team is a cost center, and the sales team Is a revenue center