[Jun 19, 2023] ExamcollectionPass CMA-Financial-Planning-Performance-and-Analytics Exam Practice Test Questions (Updated 112 Questions) [Q57-Q77]

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[Jun 19, 2023] ExamcollectionPass CMA-Financial-Planning-Performance-and-Analytics Exam Practice Test Questions (Updated 112 Questions)

Pass IMA CMA-Financial-Planning-Performance-and-Analytics Exam Info and Free Practice Test

The exam is divided into four main sections, each of which covers a different aspect of financial planning and analysis. The first section focuses on planning, budgeting, and forecasting, and tests an individual’s ability to create and implement effective financial plans and budgets for organizations of all sizes. The second section covers performance management, which includes measuring, analyzing, and interpreting financial performance data to identify areas where improvements can be made.

To be eligible to take the CMA Part 1 certification exam, candidates must have a bachelor’s degree from an accredited institution and at least two years of professional experience in financial planning, performance, or analytics. Alternatively, candidates can also qualify by having a professional certification in a related field, such as CFA or CPA. The exam itself consists of 100 multiple-choice questions and must be completed within four hours.

The exam covers a wide range of topics, including financial decision making, planning, and analysis, cost management, performance management, and internal controls. It is designed to test the candidate’s knowledge and understanding of financial concepts and their ability to apply them in real-world scenarios. The exam is divided into two parts, with Part 1 focusing on financial planning, performance, and analytics, and Part 2 focusing on financial decision making.

NO.57 Harris Company sells two products with the following characteristics.

Harris Company’s total sales-mix variance for the year is

$300,000 Unfavorable

$350,000 unfavorable

$375,000 Unfavorable

$725,000 Favorable

NO.58 If a company s disaster recovery planning includes the use of a cold site the company will

resume Its business processes immediately at a remote site with no preinstalled equipment

restore its IT function after equipment is made ready at a site with prewired IT access

restart its IT operations using the real-time mirroring performed at the cold site

relaunch its major business processes from a site with preinstalled equipment

NO.59 What is the best type of accounting system control to help prevent improper manipulation of data and to ensure the continued, satisfactory use of the hardware and software?

Processing controls such as limiting access

Output controls such as a maximum check

input controls such as a limit check

Throughput controls such as a hash total

NO.60 Ingle Inc. has adopted a quality management program that considers all defects as avoidable and unnecessary The goal of this program is to have zero defects ingle uses a process costing system and has recognized the cost of normal and abnormal spoilage on its financial statements How will the new quality management program affect the accounting for normal and abnormal spoilage?

All spoilage will be recognized as normal spoilage

All spoilage will be recognized as abnormal spoilage

All spoilage will be assigned to ending finished goods inventory

There will be no effect

NO.61 A new restaurant chain has installed a new restaurant management system. However many employees have complained that the restaurant management system is not user-friendly and has caused many customer service issues. Which one of the following may help to improve system performance?

CVP analysts

Business process analysis

Sensitivity analysis

Exploratory data analysis

NO.62 Trans Action inc. (TAI) is a multidivisional supplier of power train components to the automobile industry.
Following is selected information for the year just ended for each of the three divisions. Gear Axle and Housing.

The tai Board of Directors has decided to reward the employees or the divisions by allowing them to share in a bonus pool equal to S100.000 for each percentage point the return on investment (ROI) earned by their division exceeded the ROI of comparable firms as shown in the table below.

Rank the amounts in the bonus pools for the respective divisions from highest to lowest.

Axle, Housing, Gear

Gear. Housing, Axle

Axle, Gear, Housing

Housing, Axle, Gear.

NO.63 Aeronautics Inc. has designed a new airplane that entails an extremely complex manufacturing process Upon reviewing the market Aeronautics’ management believes the price of the plane will need to be set below current manufacturing costs. Some on the management team have recommended stopping the project, however, the CFO believes that the plane will become profitable in the near future. The CFO most likely used which forecasting method?

Time series.

Learning curve analysis

Exponential smoothing

Cost-volume-profit analysis

NO.64 An analytic model that seeks to find variables in a data set that will enable customer segmentation is a

classification analysis

prediction analysis

clustering analysis

market basket analysis

NO.65 A company’s controller is preparing to allocate service department costs. The controller would like to use a cost allocation method that would be most accurate. The method the controller would most likely use is the

dual allocation method

reciprocal method

direct method

step-down method

NO.66 Two examples or measures that could appear in the Learning and Growth section of a balanced scorecard are

employee promotion rate and number of environmental incidents

employee training hours and product defect rates

number of employee suggestions and finished products per day per employee

employee turnover rate and employee training hours

NO.67 Lewis Farms inc, is a large grower of vegetables in Northern California. During a year in which there is no drought the firm earns S3 million from its produce In a year with a partial drought, earnings are $1 million and if there is a severe drought, the firm has zero earnings Based on many years of weather data, in 50% of the years there was no drought in 30% of the years there was a partial drought, and a severe drought occurred 20% of the time. Lewis Farms has an opportunity to purchase an insurance policy that would pay Lewis $2 million in the event of a severe drought $1 million in the case of a partial drought, and nothing in the event there is no drought ignoring taxes, the maximum premium that Lewis would be willing to pay for the policy is

$500,000.

$700,000.

$1, 200, 000.

$1, 500, 000.

NO.68 The best way to illustrate the entire distribution of numerical data for a single variable is with a

pie chart

bubble chart

histogram

heat map

NO.69 Redstone, inc’s budget indicated that it expected to sell 30.000 units of Product A and 90.000 units of Product B Budgeted unit contribution margins were $4 for Product A and $22 for Product B Redstone’s actual sales were 28.000 units of Product A and 72.000 units of Product B with actual unit contribution margins of $3 25 and S23 50. respectively. Redstone’s sales-mix variance was

$54,000 unfavorable

$60,750 unfavorable

$64,800 unfavorable

$78,000 unfavorable.

NO.70 A fitness company produces workout video content and snares it online. The company has subscribers all over the world and its subscriber base has shown steady growth Management has approached a popular workout apparel company to discuss potential sponsorship opportunities. The goal is to impress the potential sponsor by showing the growth in total subscribers over the last 12 months. All of the following would be appropriate options for visualizing this data except a

bar graph

line graph

pie chart

table

NO.71 Discuss Whitney’s arguments for allocating more capital funds to the Airline Catering division.
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).

See the Answer below in Explanation details.
Explanation
Unless Whitney can’t justify that the returns on the funds allocated to the division will create more returns as compared to if it’s diverted to the food to go division, allocating the funds to the Whitney’s division will not be justifiable and efficient use of resources of the company though the residual income or return on investment will be higher however, future prospects are full which needs to be factored.

NO.72 in times of declining prices using the Last-in First-Out (LIFO) cost flow assumption rather than the First-in, First-Out (FIFO) assumption will yield

higher assets and higher income

higher assets and lower Income

lower assets and higher income

lower assets and lower income

NO.73 A company carried out the following activities for the current period.

According to U.S GAAP, what amount of cash was provided by financing activities?

($55.000).

($45.000)

($40, 000).

($25,000).

NO.74 A manufacturing company is considering implementing activity-based costing. Which one of the following statements is a valid consideration when making this change?

Activity-based costing systems may not replace traditional costing systems used for prepar.ng external financial statements.

Companies that make diverse products are least likely to benefit from activity based costing

An activity-based costing system is more costly to maintain than a traditional costing system

In an activity-based costing system, all costs including idle capacity costs, are allocated to products, customers and other costing objects

NO.75 Product liability is best classified as an example of

prevention costs

appraisal costs

internal failure costs

external failure costs

NO.76 A manufacturing company is setting a standard number of labor hours for a product Management creates a draft standard and asks for employees’ feedback. Which one of the following statements best represents the type of standard that is being set?

A participative standard because It includes management’s Input to determine the standard.

An authoritative standard because the employees helped to determine the standard

A participative standard because the employees will more likely view the standard as reasonable.

An authoritative standard because management still will ensure the standard fits the strategy

NO.77 The manager in charge of the disaster recovery plan for a company has ensured that there is off-site storage of key data programs, operating systems and documentation. Which one of the following is the best next step to be prepared for a disaster?

She should enter into reciprocal agreements with alternative ”hot” sites.

She should make sure that everyone Knows the location of offsite data storage.

She should create a planning document including a list of critical applications.

She should ensure that the “cold” sites are fully equipped and ready.

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