IMANET IMANET-CMA Online Practice Questions and Exam Preparation

IMANET IMANET-CMA Online Questions & Answers

• Question 521:

  Benefits of computer-integrated manufacturing (CIM) include all of the following except

  A. Faster response to market changes.
  B. Lower production costs.
  C. Greater oversight by upper management.
  D. Improved product quality.
  C. Greater oversight by upper management.

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  Explanation

  Computer-integrated manufacturing (CIM) provides many benefits, among them improved product quality (less rework), better customer service, faster response to market changes, greater product variety, lower production costs, and shorter product development times. Greater oversight by upper management is debatable as a positive good and it does not apply in CIM in any case.

• Question 522:

  A company is about to introduce a new service and wishes to develop a new slogan and logo to be used in advertising and on company publications. You have been chosen to participate in this process and to look at past slogans, logos, and suggestions given by the advertising agency. You are not limited to the suggested ideas and have been encouraged to suggest original ideas of your own. Which of the following techniques is most appropriate to use?

  A. Brainstorming.
  B. Value analysis.
  C. Free association.
  D. Attribute listing.
  C. Free association.

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  Explanation

  Free association is an approach to idea generation that reports the first thought to come to mind in response to a given stimulus, for example, a symbol or analogy pertaining to a product for which an advertising slogan is sought. The objective is to express the content of consciousness without censorship or control.

• Question 523:

  Anything that interferes with the basic communication process is

  A. Encoding.
  B. Noise
  C. Decoding
  D. Response
  B. Noise

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  Explanation

  The basic communications model has the following components: (1)the major parties (sender and receiver), (2) tools (message and media), (3) functions (encoding, decoding, response, and feedback), and (4) noise. Noise is anything (i.e., a random and competing message) that interferes with the communication process

• Question 524:

  Ricardo gets a Christmas bonus of $1,500 cash. He decides to invest the whole amount in a mutual fund where it is expected to earn a return of 12%. How much will Ricardo have in the account at the end of 4 years?

  A. $2,36100
  B. $2,107 50
  C. $2. 64300
  D. $2,196. 00
  A. $2,36100

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  Explanation

  Using FV factor tables, the FV factor for 12% at the end of 4 years is 1 574. Thus, the future value of the account at the end of 4 years is $2. 36 1 .00(1.574 x $1 500)

• Question 525:

  Under the Monte Carlo method,

  A. The model is run once.
  B. Uncertainly is simulated.
  C. Total performance is determined.
  D. Probability distribution is not used.
  B. Uncertainly is simulated.

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  Explanation

  The Monte Carlo method is a tool used to evaluate problem solutions. Random behavior may be added to otherwise deterministic models to simulate the uncertainly inherent in real-world situations. The model is run a large number of times1 and the variance of the probability distribution of the results and the average performance are determined.

• Question 526:

  The bailout payback method

  A. Is used by firms with federally insured loans.
  B. Calculates the payback period using the sum of the net cash flows and the salvage value.
  C. Calculates the payback period using the difference between net cash inflow and the salvage value.
  D. Estimates short-term profit ability.
  B. Calculates the payback period using the sum of the net cash flows and the salvage value.

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  Explanation

  The bailout payback period is the length of time required for the sum of the cumulative net cash inflow from an investment and its salvage value to equal the original investment. The bailout payback method measures 11the risk to the investor if the investment must be abandoned. The shorter the period, the lower the risk.

• Question 527:

  Rex Company is considering an investment in a new plant which will entail an immediate capital expenditure of $4,000,000. The plant is to be depreciated on a straight-line basis over 10 years to zero salvage value. Operating income (before depreciation and taxes) is expected to be $800,000 per year over the 10-year life of the plant. The opportunity cost of capital is 14%. Assume that there are no taxes.What is the book (or accounting) rate of return for the investment using the average investment method?

  A. 10%
  B. 20%
  C. 28%
  D. 35%
  B. 20%

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  Explanation

• Question 528:

  Which relationship marketing level is appropriate for a low unit profit margin and many customers?

  A. Reactive marketing.
  B. Basic marketing.
  C. Partnership marketing.
  D. Proactive marketing.
  B. Basic marketing.

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  Explanation

  A firm must determine the appropriate investment in building customer relationships. The levels of investment depend on unit profit margins and the numbers of customers. Basic marketing consists only of selling (low-margin, many customers).

• Question 529:

  The Dawson Corporation projects the following for the year Earrings before interest and taxes $35 million

  

  The expected common stock dividend per share for Dawson Corporation is The company’s net income is $18,000,000 [($35,000,000 EBIT - $5,000,000 interest) x (1.0 – .4 tax rate)]. Thus, the earnings available to common shareholders equal $14,000,000 ($18,000,000 - $4,000,000 preferred dividends), and EPS is $7 ($14,000,000 ÷ 2,000,000 common shares). Given a dividend-payout ratio of 30%, the dividend to common shareholders is expected to be $2. 10 per share ($7 x 30%).

  A. $2. 34
  B. $2. 70
  C. $1.80
  D. $2. 10
  D. $2. 10

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  Explanation

• Question 530:

  Which level of relationship marketing entails continuous assistance to big customers?

  A. Reactive marketing.
  B. Proactive marketing.
  C. Accountable marketing.
  D. Partnership marketing.
  D. Partnership marketing.

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  Explanation

  A firm must determine the appropriate investment in building customer relationships. The levels of investment depend on unit profit margins and the numbers of customers. According to Kilter, partnership marketing entails continuous assistance to big customers. This level of investment is appropriate when margins are high and customers are few.