Free IMA CMA-Financial-Planning-Performance-and-Analytics Practice Exam with Questions & Answers

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

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

Return on investment (ROI) is a performance measure that requires managers to respond to several factors that are under their Influence 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

Collins Corporation manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause the least concern would be a

A plastics manufacturing company is analyzing business units using the BCG Growth-Share Matrix Business Unit A is a market leader with high market share in the plastic container market Unit A's growth in the past three years has been limited due to high regulation and decreasing customer demand Customer satisfaction tor the unit is high Business Unit B is a relatively new business unit which entered the market two years ago with a new, innovative plastic organizer Unit B holds just 5% of the market share but growth has been high for this new product line Throughput time for this unit is lower than the company average with a high number of reworks each month. Which one of the following correctly identifies the BCG Growth-Share matrix for Business Unit A and Business Unit B. respectively?

In developing a risk-based approach to internal control, a company is considering the risks posed to various accounts due to the complex calculations involved as well as industry factors that make measurement difficult. These risk factors are part of

A company s accounting department is run by only one accountant. Which one of the following can be implemented as a detective control?

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?

Grayson Inc. experienced the following costs per unit this year for one of the direct materials involved in producing its main product

3.1 pounds @ $4 20 per pound = $13.02 per finished unit

For the next year. Grayson expects to produce 7.400 finished units. The price per pound of the direct material is expected to rise 10%. To combat this increase. Grayson has adapted its manufacturing process to reduce the amount of the direct material needed per finished unit by 5% What is the direct materials budget for the next year?

GorCo anticipates 10% sales growth each month for the next three months, and plans to sell 120.000 units of finished 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