CMA Part 1 Exam CMA Financial Planning Performance and Analytics Dumps Questions Online

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IT students know that completing the IMA CMA certification requires passing two parts, including the CMA Part 1 CMA Financial Planning Performance and Analytics exam and the CMA Part 2 CMA Strategic Financial Management exam. Today, we will introduce the CMA Financial Planning Performance and Analytics exam dumps to all. CMA Financial Planning Performance and Analytics exam dumps of ITPrepare are all things considered what you really are looking for. Download ITPrepare’s CMA Financial Planning Performance and Analytics dumps pdf file to start learning all these questions and answers online to make sure that you can answer the CMA Part 1: Financial Planning – Performance and Analytics Exam smoothly.

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1. 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.

2. A company has the following accounts included in its trial balance as of December 31

What amount of equity will be reported on me company’s balance sheet as of December 31?

$626,500

$657,500

$92,500.

$599,000.

3. in order forthe IT manager in cnarge of a company's disaster recovery plan to have complete planning documentation, he should ensure that the documentation includes all of the following except

the results of the latest disaster recovery test run

the phone numbers of key employees

vendors who win set up the hot site

program and operating system documentation

4. A corporation had foreign currency translation gains from converting the financial statements of its foreign operations into U.S dollars.

How will these gains be reported on the corporation’s financial statements?

As a current asset on the balance sheet

As a net increase in cash in the operating activities section of the statement of cash flows

As part of net income on the income statement

As part of comprehensive income on the income statement

5. 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

6. All of the following are limitations of teaming curve analysis except that

the learning rate tends to be affected by seasonality in sales

the estimated learning rate might be unreliable because other factors could have caused the change

the learning rate is assumed to be constant

it is appropriate only for labor-intensive repetitive tasks

7. Anatolian Textile Company produces blue-jean pants for a globally known blue-jean brand and its annual financial results are shown below.

Based on the table the sales-price variance for the company is

4,500 unfavorable

4,500 favorable

10,500 favorable

10,500 unfavorable

8. A new restaurant chain has installed a new restaurant management system. However many employees havecomplained 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

9. 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?

Retained earnings will decrease by $1.000.000

Retained earnings will decrease by $9.000.000

Paid-in capital will increase by $9,000.000

Common stock will increase by $10.000.000

10. For a manufacturing company what is the most Importantadvantage of using variable costing rather than absorption costing?

Variable costing includes only variable direct and indirect costs in inventory which makes it more useful for short-term decision making and performance evaluation.

Variable costingis the required inventory method for external reporting in most countries and therefore is less costly to implement

Variable costing is cost-effective and Jess confusing to managers and is therefore more useful in performance evaluation.

Variable costing measures the cost of all manufacturing resources, whether variable or fixed and thus provides the most complete cost.

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11. 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?

Management has decided not to maintain a hot site because it was determined that the costs outweigh the benefits.

The details of the disaster recovery plan stipulate that internal audit should review the plan every other year rather than annually.

A cold site with backup data and documents is maintained on the basement level of the company s headquarters.

Members of the company's disaster recovery team maintain current copies of the disaster recovery plan m their homes.

12. A building materials retailer uses a LIFO method of valuing its inventory. The company has just introduced a new product.

The following is the activity for the first month of this new product.

• Purchase of 3,000 units on the 2nd of the month at $5.00.

• Purchase of 6,000 units on the 12th of the month at $4.80.

• Purchase of 2,000 units on the 31st of the month at $5 60.

• Sales of the product were 4,000 units on the 20th of the month. Using the periodic method, the ending value of the inventory would be

$34,200.

$35,000.

$35,200.

$35, 800.

13. GorCo anticipates 10% sales growth each month for the next three months, and plans to sell 120.000 units offinished goods In the first month. The company plans production so that ending inventory is equal to 5% of the next month's budgeted sales On GorCo's production budget for the second month the number of finished goods units to be produced would be

131,340.

132,000.

132,600.

132,660.

14. The master budget for a company contains mefollowing production requirements.

Quarter 1― 50,000 units

Quarter 2 ― 55,000 units

Quarter 3 ― 45,000 units

Quarter 4 ― 52,000 units

Each unit of product requires four pounds of direct material. The company has a policy to begin each quarter with an inventory of aired materials equal to 20% of that quarter's direct material requirements. The budgeted direct mate da I purchases for the third quarter would be

36, 000 pounds

41,400 pounds

49, 400 pounds

185, 600 pounds

15. The contribution margin data is shown below for several strategic business units (SBU).

which SBU has the lowest contribution margin ratio?

SBU

16. A company has two service departments Security and Human Resources and two operating departments Assembly and Finishing Cost data for these departments are shown below

To determine the full costs of conducting Business m the operating departments the company allocates service department costs to the operating departments Security costs are allocated based on the number of employees and Human Resources costs are allocated based on the number of Human Resources hours used using the step-down method, what amount of Security costs would be allocated to the Assembly department?

$12,727.

$13,333.

$18,773.

$20,000.

17. A company reported that its shareholders' equity decreased in the recent year. This could occur if

dividends paid were less than net income.

dividends paid were greater than net income

new common stock was sold for greater than par value

new common stock was sold for less than par value

18. As part of the COSO Internal Control Framework segregation of duties and documentation areincluded in which of the components of the COSO model below?

Operating environment

Risk assessment

Control activities

Information and communication

19. 1.Return on investment (ROI) is a performance measure that requires managers to respond to several factors that are under theirInfluence or control Decisions Intended to influence ROI are often from a short-term perspective and may conflict with the long-term objectives of the organization. This lack of goal congruence can be minimized by

providing the manager with limitationson what can be used to influence the factors involved in computing the RO

using the two components of ROI (investment turnover and return on sales) instead of only RO

allowing different minimum returns for different investments.

requiring multiple-year measures of ROI and evaluating these results along with the residual incomes from the same periods.

20. 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 andeconomically 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 costsin their financial statements?

Company A should expense the development costs while Company B should capitalize the development costs

Company A should capitalize the development costs while Company B should expense the development costs

Both Company A and Company B should capitalize the development costs

Both Company A and Company B should expense the development costs

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21. A company had 100.000 shares of common stock issued and outstanding at January 1.

During the year, the company took the following actions:

$50.000

$75,000.

$100,000.

$150,000

22. A company recently used 500 direct labor hours to manufacture ten units of a new product, if the company employs the cumulative average-time learning model with a 90% learning curve, the number of direct labor hours the company would expect to use to produce the next ten units of this product is

500

475

450

400

23. A company manufactures dining tables.

The variable costs per unit are as follows.

Other costs are fixed and include advertising costs of $45,000 per year administrative costs of $55,000 annually and fixed manufacturing overhead of S250.000 per year based on Budgeted production of 10.000 dining tables There was no beginning inventory During the prior year, a total of 10.000 dining tables were manufactured, with 9 000 dining tables sold at $100 each.

Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?

$45,000.

$70,000.

$80,000.

$100,000.

24. A manufacturing companyis 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

25. Aeronautics Inc. has designed anew 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

26. Which one of the following items is included in accumulated other comprehensive income?

Gains and losses on the sale of equipment

Effect of a change in accounting method

Realized gains on available-for-sale securities

Foreign currency translation adjustments

27. A company s accounting department is run by only one accountant.

Which one of the following can be implemented as a detective control?

Require the accountant to double-check his work

Require the accountant to update cash balance regularly

Train another employee to perform bank reconciliations

Train another employee to record journal entries.

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

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.

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

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.

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

29. MJC Co. is considering adopting a variable costing system using variable costing rather than absorption costing will be more advantageous to MJC because the variable costing system

more readily provides data needed for cost/volume/profitanalyses done by management

focuses on gross profit as the best indicator of a company's ability to cover its expenses

assigns all costs of manufacturing to products in order to properly match cost of production with revenues

allows the financialstatements released to internal users to agree with the GAAP financial statements issued for external use

30. Sullivan Company's static Budget for the past yearis shown below.

Sullivan actually sow 11.000.000 units throughout the year which was a quantity within its relevant range. The flexible budget net income that should be used to compare to actual results is

$4,200,000.00

$7,500,000.00

$6,580,000.00

$11,500,000.00

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31. Marsalis Products Inc. manufactures and sells batteries and cables for computers.

The latest information on the products and their costs is shown in the following table.

Note: 1 Fixedmanufacturing cost of S1.500,000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine hour.

Based on the information above, what is the annual amount of earnings before interestand taxes (EBIT)?

$1,460,000.

$2,920,000.

$2,960.000.

$4,420,000.

32. when considering data visualization elements, the incorporation or color, shape, size, or animation can be used to address

multiple variables

complexity

data distortion

data myopia

33. in preparing Klein Corporation's master budget for the following calendar year, the manager of the Production Department requested the purchase of a new piece of machinery with a purchase price of $150.000 in addition, the cost of installing the machine would total $13.000. The purchase price of the machine would be financed by a 6%. 5-year loan with interest due quarterly. The amount Klein Corporation should include in its Capital Expenditures Budget due to this purchase is

$13,000

$22,000

$163,000

$172,000

34. The following information pertains to Wang Corporation which usesstandard costing for its materials.

The following information pertains to Wang Corporation which uses standard costing for its materials.

What is me amount of the unfavorable material-related variance that would appear on a report to the production foreman?

$4,000

$5,000

$5,600

$6,000

35. 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

36. A company has prepared the following pro forma income statements. It plans to sell 10,000 units in the current year and 11.500 units next year.

Increase sales revenue by 15%.

Reduce cost of goods sold by $1.00 per unit

Increase gross profit margin by 15%

Reduce operating expenses by $1.00 perunit

37. A company expects sales of 225 000 units in April, 210 000 in May and 190 000 in June.

The company maintains an ending Inventory each month of 25% of the next month's sales.

How many units should the company plan to produce in May?

205,000 units.

210,000 units

215.000 units

221,250 units

38. Which statement below best describes therelationship among a company's organizational structure, policies. objectives and the effectiveness of the control environment?

The policies, organizational structure, and objectives set the foundation tor the internal control components and provide discipline and structure

Management can determine the organizational structure, policies and objectives to create the control environment after the risks are identified

The control activities have more influence on the control environment than the organizational structure policies and objectives

The control environment often Is completely Independent and distinct from the organizational structure policies. and objectives

39. A company's return on investment will increase it expenses decrease by $100 and

net profit decreases by $100

sales decrease by $100

net profit remains unchanged

total assets remain unchanged

40. 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 changingto an activity-based system is that

the overhead costs allocated to the special designs will likely increase because the special design requires proportionally more overhead activity

the overhead costs allocated to the special designs will likely decrease Because demand for them has grown

total production costs are likely to decline as department are held responsible for their costs

the costs allocated to each product should not change but management will be able to control various components ofthe cost more effectively.

CMA Part 1 Exam CMA Financial Planning Performance and Analytics Dumps Questions Online