[Aug 14, 2022] Pass CMA Certification CMA-Financial-Planning-Performance-and-Analytics Exam With 112 Questions
Ultimate Guide to Prepare Free IMA CMA-Financial-Planning-Performance-and-Analytics Exam Questions and Answer
NEW QUESTION 20
A company has four product noes and must decide to discontinue one so mat it can focus on its more profitable products Information about the four product lines is shown below.
if the company evaluates profitability based on ROl. which product line should be discontinued?
Calculator
- A. Product line Z.
- B. Product line W.
- C. Product line X.
- D. Product line Y.
Answer: C
NEW QUESTION 21
A company incurred the following selected costs In its manufacturing operations during the month.
- A. $20,000
- B. $22,000
- C. $21,000
- D. $23,000
Answer: B
NEW QUESTION 22
Throughout June. Carroll Company purchased 75,000 pounds of raw materials at a cost of $303,750 and used
60 000 pounds of these purchases in production Carroll's standards indicated that each unit of finished goods requires three pounds of material at a cost of $4 per pound Although Carroll had budgeted for 22,000 units of finished goods to be produced during June, only 19,800 units were actually made. The raw material price variance for June that would be most relevant when examining deviations from standard is
- A. $3,750 Unfavorable
- B. $3,300 Unfavorable
- C. $2,970 Unfavorable
- D. $3,000 Unfavorable
Answer: A
NEW QUESTION 23
Explain the concept of data encryption and discuss how It may be used to protect the email communications between ZFls payroll administrator and the payroll service provider.
Essay
Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (¥ in millions).
ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.
Answer:
Explanation:
See the Answer below in Explanation details.
Explanation
Data encryption is coding the information in such a way that no one except the receiver who win nave the secret key or password would be able to access and read the information It Is a security measure done for protecting the Information In this case also the payroll information is sensitive and hence data encryption will be beneficial to ensure that the company confidential information about payroll is safeguarded against fraudulent attempts.
NEW QUESTION 24
Which one of the following is the most important factor in the successful implementation of a balanced scorecard?
- A. Providing a feedback mechanism
- B. Obtaining management buy-in and support
- C. Setting appropriate measurement criteria
- D. Linking the scorecard to external criteria
Answer: D
NEW QUESTION 25
What is ZF's expected variable overhead cost per pound of food produced? Snow your calculations Essay Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (¥ in millions).
ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.
Answer:
Explanation:
See the Answer below in Explanation details.
Explanation
Factory Utilities 30m
Production Payroll 20m
Other Variable Cost 40m
Total Variable OHD 90m
Total Pounds Produced 100m
Hence vanable OHD per pound / 90m= 100m = 0.9
NEW QUESTION 26
Identity two internal factors that enable the Food-To-Go division to have competitive advantages over Its competitors.
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).
Answer:
Explanation:
See the Answer below in Explanation details.
Explanation
- Strong cash position
- Experience in food industry through amine catering division
NEW QUESTION 27
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. $19,750 lower using variable costing
- C. $16,750 higher using absorption costing.
- D. $28,000 lower using variable costing
Answer: C
NEW QUESTION 28
The best way to illustrate the entire distribution of numerical data for a single variable is with a
- A. histogram
- B. bubble chart
- C. pie chart
- D. heat map
Answer: B
NEW QUESTION 29
Which one of the following is the least important for a successful budget process?
- A. The degree of alignment between the budget and other performance goals
- B. Integrated budget software
- C. Top management support
- D. The level of participation in the budget process
Answer: B
NEW QUESTION 30
The master budget for a company contains me following 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
- A. 49, 400 pounds
- B. 185, 600 pounds
- C. 41,400 pounds
- D. 36, 000 pounds
Answer: B
NEW QUESTION 31
A manufacturing company is considering implementing activity-based costing. Which one of the following statements is a valid consideration when making this change?
- A. In an activity-based costing system, all costs including idle capacity costs, are allocated to products, customers and other costing objects
- B. Companies that make diverse products are least likely to benefit from activity based costing
- C. An activity-based costing system is more costly to maintain than a traditional costing system
- D. Activity-based costing systems may not replace traditional costing systems used for prepar.ng external financial statements.
Answer: C
NEW QUESTION 32
Which one of the following statements describes now Section 302 of the Sarbanes-Oxley Act impacts a company's Internal control environment?
- A. The auditor is more independent because non-audit services are prohibited
- B. Executives are more supportive since they certify their responsibility for the system
- C. Greater external scrutiny results because a new auditor must be appointed annually
- D. The board s financial expertise improves because a financial expert is appointed
Answer: B
NEW QUESTION 33
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
- A. €10,500 favorable
- B. €10,500 unfavorable
- C. €4,500 unfavorable
- D. €4,500 favorable
Answer: A
NEW QUESTION 34
In trying to predict the returns on the stock market, a novice investor collected data on the sightings of sperm whales off the eastern coast of North America and the performance of the Dow Jones Industrial Average (the Dow) A regression of the two variables resulted in a correlation coefficient of -0.90 or a coefficient of determination (r2) of 81%. The sightings of whales seemed to be negatively correlated with the performance of the Dow. The novice investor should
- A. track the sighting of sperm whales and buy the Dow when sightings are low: conclude that sperm whale sightings are a strong indicator of poor performance of the Dow
- B. conclude that this is an example of spurious correlation
- C. conclude that the poor performance of the Dow leads to high sightings of sperm whales
- D. conclude that there is a cause-and-effect relationship between the two variables
Answer: B
NEW QUESTION 35
Which one of the following represents a temporary difference under U.S GAAP?
- A. Fines and expenses resulting from violation of the law
- B. Accrued liabilities
- C. interest received in municipal bonds
- D. Percentage depletion of natural resources
Answer: B
NEW QUESTION 36
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
- A. lower assets and higher income
- B. higher assets and higher income
- C. lower assets and lower income
- D. higher assets and lower Income
Answer: B
NEW QUESTION 37
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