Study with CMA-Financial-Planning-Performance-and-Analytics Actual Test Questions

IMA CMA-Financial-Planning-Performance-and-Analytics Exam Overview:

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IMA CMA Part 1: Financial Planning - Performance and Analytics Sample Questions:

1. Sportsman inc. manufactures ceramic sports-related figurines. The company's oldest lines are mass produced in a standard variety of colors and designs. A few years ago in an effort to increase sales, the company began accepting special orders with modified designs in school colors. The minimum order for these special designs is 100 units. The special orders have become very popular and now represent one quarter of the units produced. Estimates for the year follow.

Design costs manufacturing overhead and materials handling costs are budgeted at $700.000 for the year Sportsman has always used a traditional cost allocation system using aired labor hours as the allocation base but is considering an activity based costing system. The most likely result of changing to an activity-based system is that

A) the overhead costs allocated to the special designs will likely increase because the special design requires proportionally more overhead activity
B) total production costs are likely to decline as department are held responsible for their costs
C) the costs allocated to each product should not change but management will be able to control various components of the cost more effectively.
D) the overhead costs allocated to the special designs will likely decrease Because demand for them has grown

2. Comprehensive income is best defined as

A) total revenues minus total expenses
B) the change In net assets for the period excluding owner transactions
C) the change in net assets for the period including contributions from owners and distributions to owners
D) net income excluding realized gams and losses

3. 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?

A) The details of the disaster recovery plan stipulate that internal audit should review the plan every other year rather than annually.
B) A cold site with backup data and documents is maintained on the basement level of the company s headquarters.
C) Members of the company's disaster recovery team maintain current copies of the disaster recovery plan m their homes.
D) Management has decided not to maintain a hot site because it was determined that the costs outweigh the benefits.

4. 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?

A) 320.
B) 295.
C) 256.
D) 340.

5. Stone Ltd manufactures socket wrenches .The company produced 400 000 wrenches and sold 350,000 this year. The following information pertains to the costs accumulated in Stone's inventory.

What is the difference between Stones operating income under absorption costing and variable costings

A) $36.500 higher using absorption costing
B) $16,750 higher using absorption costing.
C) $19,750 lower using variable costing
D) $28,000 lower using variable costing

Solutions: