A scatterplot is an effective visualization technique that is used to ______
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Correct answer: B
CMA-FINANCIAL-PLANNING-PERFORMANCE-AND-ANALYTICS Real Exam Questions
CMA Part 1: Financial Planning - Performance and Analytics
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A company has the following accounts included in its trial balance as of December 31
What amount of equity will be reported on me company's balance sheet as of December 31-
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Correct answer: C
A company extracts data from existing data sets to identify customer patterns By doing this, the company is applying ______
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Correct answer: A
After a recent earthquake in a nearby city the board of directors of a company has requested a review of the company s disaster recovery plan Which of the following would be classified as a weakness in the
company's disaster recovery plan-
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Correct answer: C
A heating. ventilation, and air conditioning (HVAC) company estimates that n takes a new team of technicians 100 labor hours to install its first HVAC system and that there is an 80% learning rate What are the estimated total labor hours for a new team to complete its first four installations-
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Correct answer: A
Simulation
Explain whether ZFI's current overhead allocation method is appropriate.
Essay
Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (?in millions).
ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.
Time Value Table
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ZFI's payroll process has significant control weaknesses and the proposed systems would address several of them if implemented with disciplined governance. Today a single payroll administrator both maintains the employee master file-including bank account details for direct deposit-and records payroll journal entries after receiving reports from the outsourced provider, while hours worked are transmitted to the provider by email and the only independent check is a monthly bank reconciliation. This creates risks of
ghost employees, unauthorized pay
rate or bank account changes, misdirected deposits, and data
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- leakage in transit and at rest. It also means errors or fraud might persist for weeks because there is no independent, per-pay-period reconciliation of the payroll register to the approved time data and the HR master file.
The minimum fixes are to segregate duties and strengthen preventive and detective controls around every payroll cycle. The employee master file, including bank account changes, should require dual authorization and maker-checker workflow outside of the person who posts accounting entries; bank account updates
should be supported by documented employee requests, verified on a known channel, and-with direct deposit-validated by prenotes before first live payment. Time data must be captured in a system with supervisor approvals and transmitted to the provider via secure, automated interfaces (API/SFTP) with encryption in transit and at rest, not by email. Each pay period, an independent person should reconcile the provider's preliminary payroll register to the approved time and to a headcount roll-forward (starting headcount + hires - terminations = ending headcount), review exception reports for new hires, terminations, bank-account or pay-rate changes, and approve the final payroll before release. Treasury should use a dedicated payroll bank account with ACH filters/blocks, and accounting should load payroll results via system interface rather than manual journal entry whenever possible. The outsourced provider should be governed through a SOC 1 Type 2 report review, service-level metrics, incident-response terms, and periodic audits of access and processing controls.
Purchasing data-encryption software is justified because it directly mitigates the current exposure from emailing sensitive payroll and banking data; it should be paired with key-management procedures,
multifactor authentication, and role-based access. Adopting a human resources management system is also advisable because it can centralize master-file maintenance with workflow and audit trails, integrate timekeeping and payroll interfaces, and generate monitoring analytics. The described capability to report turnover, tenure of leavers, and reasons for resignations-and to flag employees at risk-can support retention actions such as targeted training or compensation adjustments, but these analytics must be validated, privacy-preserving, and used with clear decision rights to avoid bias or inappropriate actions. If ZFI implements the HRMS with mandatory approvals, access reviews, and secure integrations to the payroll provider, it will materially strengthen payroll integrity and deliver better management information while aligning controls with the company's outsourcing model.
Huaxia Manufacturing's standard cost card for product GH1 includes the following:
During the month of June, Huaxia produced 12,300 units. The purchasing department purchased 30,400 yards of fabric for a total cost of $100,320. The production department used 25.300 yards of fabric in June.
What is Huaxia's direct materials price variance for the month of June-
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Correct answer: B
Simulation
Identity two internal factors that enable the Food-To-Go division to have competitive advantages over Its competitors.
Essay
Food Depot Ltd (FDD is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants FDL has been profitable m recent years and has a very strong cash position FDL's newest division. Food-To-Go. is an online meal ordering and delivery platform acquired by FDL two years ago.
In 20X7. sales for the entire company were SI billion, with 50% of the business coming from the Airline Catering division. FDL is the country's leading airline catering services provider and controls 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
The Food-To-Go division only contributed 5% of FDL's total sales in 20X7 and is far behind in competing for market share of the online meal ordering and deliver, industry. It is estimated that Food-To-Go's sales were only 20% of the industry leader's sales However, the outlook for the online meal ordering and delivery services industry is bright. The compound annual growth rate of the industry since it started three years ago was 50%. It is estimated the rapid growth of the industry will continue in the foreseeable future.
The costs of shared corporate services are allocated based on each division s revenue FDL usually caps its capital expenditure budget to 4% of budgeted sales revenue In a recent capital budget coordination meeting. Smith Whitney, the head of the Airline Catering division. complained that his division is underfunded on capital projects . The budgeted capital expenditure had been much less than 4 % of the division's budgeted sales in the past three years He argued that his division is the company's best-performing division, and it needs more funds to maintain its market share m the industry Whitney wants to reduce the capital expenditure budget for Food-To-Go and reallocate those funds to his division.
Susan Wiley, the bead of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company Wiley argues that her division had the highest ROI in 20X7. and it deserves more capital funding FDL's required rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follows (in $ millions).
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FDL's existing operating platform-its nationwide restaurant chains and market-leading airline-catering operation-gives Food-To-Go a ready network of kitchens, procurement scale, and high-volume, on-time, food-safety know-how to run efficient "dark-kitchen" fulfillment faster and at lower unit cost than pure-play rivals.
FDL's strong cash position and profitability, together with scalable shared corporate services, provide superior internal funding and back-office leverage so Food-To-Go can invest aggressively in technology, marketing, and logistics while keeping overhead per dollar of revenue low.
A company has two service departments Security and Human Resources and two operating departments Assembly and Finishing Cost data for these departments are shown below
To determine the full costs of conducting Business m the operating departments the company allocates service department costs to the operating departments Security costs are allocated based on the number of employees and Human Resources costs are allocated based on the number of Human Resources hours used using the step-down method, what amount of Security costs would be allocated to the Assembly department-
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Correct answer: C
A company announced a stock dividend under which 1.000.000 shares will be issued to the holders of the 10.000.000 shares that are currently outstanding.
The stock which has a par value of $1 per share, traded at $10 on the dividend declaration date. How will shareholders' equity be affected by this stock dividend-
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Correct answer: C