IMANET IMANET-CMA Online Practice Questions and Exam Preparation

IMANET IMANET-CMA Online Questions & Answers

• Question 771:

  Capital budgeting is used for the decision analysis of?

  A. Adding product lines or facilities.
  B. Multiple profitable alternatives.
  C. Lease-or-buy decisions.
  D. All of the answers are correct.
  D. All of the answers are correct.

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  Explanation

  The capital budgeting process is a method of planning the efficient expenditure of the firms 1Jesources on capital projects. Such planning is essential in view of the rising costs of scarce resources

• Question 772:

  The elements of the marketing mix from the seller's perspective are known as the 4 Ps. Each class of marketing tools corresponds to one of the following 4 Cs, the classes of customer benefits. Which of the following is a correspondence between a customer's 4 Cs and a seller's 4Ps?

  A. Customer solution - Price
  B. Convenience – Place
  C. Customer cost – Perception
  D. Communication – Process
  B. Convenience – Place

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  Explanation

  The categories of controllable elements in a marketing program reflect the decisions to be made about the marketing mix (the combination of marketing tools). From the seller's perspective, the categories of marketing tools are product, price ,place , and promotion (sometimes called the "4 PCs" of marketing). The seller chooses tools from these categories to develop a marketing mix for achieving its objectives in the target market. From the buyer's perspective, each class of marketing tools corresponds to a customer benefit: customer solution (product), customer cost (price), convenience (place), and communication (promotion). Thus , a firm will succeed by using the 4 Ps to deliver the 4 Cs of marketing. For example, decisions about place (distribution channels, delivery options, locations, etc.) should provide the optimal feasible convenience for customers.

• Question 773:

  Which of the five promotional tools of the marketing communications mix involves using e-mail1 voice mail, fax, mail, telemarketing, and home shopping by television?

  A. Direct marketing.
  B. Sales promotion
  C. Public relations
  D. Personal selling
  A. Direct marketing.

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  Explanation

  Direct marketing involves sending a promotional message directly to consumers rather than through a mass medium. Some examples are e-mail, voice mail, fax, mail, telemarketing, and home shopping by television. Direct marketing is customized, updated, interactive, and nonpublic.

• Question 774:

  A feasible portfolio that offers the highest expected return for a given risk or the least risk for a given expected return is a (n)

  A. Optimal portfolio
  B. Desirable portfolio
  C. Efficient portfolio
  D. Effective portfolio
  C. Efficient portfolio

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  Explanation

  A feasible portfolio that offers the highest expected return for a given risk or the least risk for a given expected return is called an efficient portfolio.

• Question 775:

  The 5 Ms of the advertising process include

  I. Mission

  II. Money Ill. Market sensing

  IV.

  Mass marketing

  V.

  Media

  A. I and III only.
  B. l,ll1andVonly.
  C. II, IV, and V only.
  D. III lll, IV, and V.
  B. l,ll1andVonly.

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  Explanation

  The advertising process maybe defined in terms of the 5 Ms: (1)The mission consists of sales and advertising objectives, (2)the money to be spent is stated in the budget, (3)the message to be communicated is crafted using a creative strategy, (4) the media are chosen to communicate the message, and (5) the measurement of communication and sales determines the effectiveness of the process.

• Question 776:

  The costs described in situations 1 and 4 are

  A. Prime costs.
  B. Sunk costs.
  C. Discretionary costs.
  D. Relevant costs.
  D. Relevant costs.

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  Explanation

  Alternative uses of plant space to be considered in a make/buy decision and the cost of a special device necessary for acceptance of a special order are examples of relevant costs. Relevant costs are future costs that are expected to vary

  with the action taken. Other costs thus have no effect on the decision.

  Management accountants are frequently asked to analyze various decision situations, including the following.

  1. Alternative uses of plant space, to be considered in a make/buy decision.

  2. Joint production costs incurred1 to be considered in a sell-at-split versus a process- further decision.

  3. Research and development costs incurred in prior months, to be considered in a product-introduction decision.

  4. The cost of a special device that is necessary if a special order is accepted.

  5. The cost of obsolete inventory acquired several years ago, to be considered in a keep- versus-disposal decision.

• Question 777:

  The inherent attractiveness of a national market is most like' increased by which factor?

  A. The harms strategic position.
  B. The markets exclusion from a regional free trade zone.
  C. Unmet needs of a developing nation.
  D. Product adaptation is costly.
  C. Unmet needs of a developing nation.

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  Explanation

  Attractiveness is a function of such factors as geography, income, climate, population, and the product. Another major factor is the unmet needs of a developing nation, for exam, China or India.

• Question 778:

  The degree of financial leverage of CompanyB, totwo decimal places, is

  A. 1.03
  B. 1.05
  C. 1.12
  D. 1.25
  B. 1.05

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  Explanation

  The degree of financial leverage for Company B may be calculated as earnings before interest and taxes, divided by EBIT minus interest. EBIT is $200 ($95 NI + $10 interest + $95 tax expense). Thus, the DFL is `LOS [$200?($200-- $10)].

• Question 779:

  The discount rate ordinal' used in present value calculations is the

  A. Federal Reserve rate
  B. Treasury bill rate.
  C. Minimum desired rate of return set by the firm.
  D. Prime rate.
  C. Minimum desired rate of return set by the firm.

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  Explanation

  The discount rate most often used in present value calculators is the minimum desired rate of return as set by management. The NPV arrived at in this calculation is a first step in the decision process. It indicates how the project's return compares vent the minimum deseed rate of return

• Question 780:

  Formal written policies are normally recommended. However, the presence of certain condition in an organization minimizes the need for written policies. One condition that minimizes the need for written policies is a?

  A. High division of labor
  B. Strong organizational culture.
  C. Large span of control.
  D. Strict unity of command.
  B. Strong organizational culture.

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  Explanation

  If the culture is strong, the organization's key values are intensely held and widely shared. Substantial training has been expended to achieve this high degree of acceptance, minimizing the need for formal, written policies.