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

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

• Question 81:

  Grayson Inc. experienced the following costs per unit this year for one of the direct materials involved in producing its main product 3.1 pounds @ $4 20 per pound = $13.02 per finished unit.

  For the next year. Grayson expects to produce 7.400 finished units. The price per pound of the direct material is expected to rise 10%.

  To combat this increase. Grayson has adapted its manufacturing process to reduce the amount of the direct material needed per finished unit by 5%.

  What is the direct materials budget for the next year-

  A. $91,531
  B. $100,684
  C. $101,165
  D. $105,983
  B. $100,684

• Question 82:

  Playtime inc. manufactures playground equipment and uses 60 board feet of lumber in each model no 643 produced The company, which anticipates selling 350 units of this model during April, plans to boost its finished goods inventory in April by 80 units in preparation for the peak summer season Playtime expects to manufacture 450 units in May Playtime has only 500 board feet of lumber on hand as of April 1 because of a temporary shortage, and typically maintains a lumber Inventory equal to 20% of the following month's production needs. On the basis of this information, how many board feet of lumber should the company plan to purchase in April-

  A. $30,700
  B. $31,200
  C. $31,700
  D. $31,900
  A. $30,700

• Question 83:

  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-

  A. Retained earnings will decrease by $1.000.000
  B. Retained earnings will decrease by $9.000.000
  C. Paid-in capital will increase by $9,000.000
  D. Common stock will increase by $10.000.000
  C. Paid-in capital will increase by $9,000.000

• Question 84:

  Company A currently uses U.S GAAP while Company 8 is currently using IFRS. Both companies are individually in the process of internally developing trademarks that have been demonstrated to be technically and economically feasible Both companies have incurred development costs in the current year with respect to their internally developed trademarks.

  Which one of the following best describes how Company A and Company B should account for these development costs in their financial statements-

  A. Company A should expense the development costs while Company B should capitalize the development costs
  B. Company A should capitalize the development costs while Company B should expense the development costs
  C. Both Company A and Company B should capitalize the development costs
  D. Both Company A and Company B should expense the development costs
  D. Both Company A and Company B should expense the development costs

• Question 85:

  Which one of the following items is included in accumulated other comprehensive income-

  A. Gains and losses on the sale of equipment
  B. Effect of a change in accounting method
  C. Realized gains on available-for-sale securities
  D. Foreign currency translation adjustments
  D. Foreign currency translation adjustments

• Question 86:

  A scatterplot is an effective visualization technique that is used to ______

  A. compare and track the change in data points over multiple time periods.
  B. show the relationship of data points for two specific variables
  C. illustrate the composition of an aggregate data point that changes over several periods
  D. display the distribution of data points for a single variable
  B. show the relationship of data points for two specific variables

• Question 87:

  Which one of the following best describes the difference between a normal costing system and an actual costing system-

  A. Direct labor cost is estimated using a predetermined rate under a normal costing system, while it is the actual value under an actual costing system.
  B. Direct material cost is estimated using a predetermined rate under a normal costing system while it is the actual value under an actual costing system
  C. Factory overhead cost is estimated using a predetermined rate under a normal costing system, while it is me actual value under an actual costing system.
  D. Both direct labor cost and direct material cost are estimated using a predetermined rate under a normal costing system, while they are the actual value under an actual costing system
  C. Factory overhead cost is estimated using a predetermined rate under a normal costing system, while it is me actual value under an actual costing system.

• Question 88:

  The price of gold is impacted by many variables A gold-mining company analyst wants to estimate the probability that the price of gold will decline by greater than 10%. Which one of the following approaches is the best analytic tool to use-

  A. Time series analysis
  B. Goal-seeking analysis
  C. Monte Carlo simulation
  D. Regression analysis
  C. Monte Carlo simulation

• Question 89:

  Collins Corporation manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause the least concern would be a ______

  A. 6% unfavorable fixed overhead volume variance caused by work stoppages because of missing parts
  B. 9% unfavorable material price variance caused by changing to a supplier that would support the company's just-in-time needs.
  C. 30% unfavorable direct labor efficiency variance caused by idle time while waiting for goods to be received from a previous manufacturing department
  D. 12% unfavorable variable overhead spending variance caused by keeping equipment running during times when there is no production activity
  B. 9% unfavorable material price variance caused by changing to a supplier that would support the company's just-in-time needs.

• Question 90:

  Brickworks Inc. prepares its annual budget by focusing on the budgeted costs of the processes necessary to produce and sell its products This type of budgeting is known as

  A. zero-based budgeting
  B. project budgeting
  C. activity-based budgeting
  D. flexible budgeting
  A. zero-based budgeting