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Pass the IMA CMA CMA-Financial-Planning-Performance-and-Analytics Questions and answers with ValidTests

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Questions # 1:

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

Options:

A.

net profit decreases by $100

B.

sales decrease by $100

C.

net profit remains unchanged

D.

total assets remain unchanged

Expert Solution
Questions # 2:

The best way to illustrate the entire distribution of numerical data for a single variable is with a

Options:

A.

pie chart

B.

bubble chart

C.

histogram

D.

heat map

Expert Solution
Questions # 3:

A scatterplot is an effective visualization technique that is used to

Options:

A.

compare and track the change in data points over multiple time periods.

B.

show the relationship of data points for two specific variables

C.

illustrate the composition of an aggregate data point that changes over several periods

D.

display the distribution of data points for a single variable

Expert Solution
Questions # 4:

Which one of the following is the most important factor in the successful implementation of a balanced scorecard?

Options:

A.

Providing a feedback mechanism

B.

Setting appropriate measurement criteria

C.

Linking the scorecard to external criteria

D.

Obtaining management buy-in and support

Expert Solution
Questions # 5:

Faxton and Rexford are competitor in the same industry Faxton utilizes an incentive program mat focuses solely on net income Rexford uses customer service and employee development in addition to net income in its incentive program. Over time. Faxton can be expected to

Options:

A.

have higher sales growth than Rexford due to management s strong focus

B.

be less likely to misstate earnings due to the importance of earnings to management

C.

be more profitable than Rexford initially Put lose this advantage

D.

consistently be more profitable than Rexford due to not funding training programs

Expert Solution
Questions # 6:

Which one of me following statements is correct concerning the Sarbanes-Oxley Act of 2002?

Options:

A.

A company's Chief Accounting Officer cannot have been employed by the company's audit firm for the five years preceding the audit

B.

The five-member Public Company Accounting Oversight Board will be overseen by the AICPA and the FASB working together

C.

Corporate executives must personally certify the financial statements and company disclosures under the possibility of imprisonment

D.

The company's audit firm must be rotated every five years and the lead auditor must be rotated every year

Expert Solution
Questions # 7:

Music Masters Inc. has three departments: Instrument Sales, Music Instruction and Recording Studio The three segments are staffed by different customer service personnel but share space and administrative staff Condensed income statement information follows.

Question # 7

Management wants to eliminate the Recording Studio because of its losses. Because of the configuration of the building it is doubtful the space could be sublet and none of the common fixed costs would be eliminated However, additional space allocated to either Instrument Sales or Music Instruction might increase revenue from those sources In making this decision, all of the following outcomes are correct except.

Options:

A.

elimination of the Recording Studio will increase net income by $10,000

B.

elimination of the Recording Studio will decrease net income by $10,000

C.

net income will remain the same if the Recording Studio is eliminated and Music Instruction revenue increases $20,000

D.

net income will increase if the Recording Studio is eliminated and instrument Sales increase $25,000

Expert Solution
Questions # 8:

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?

Options:

A.

CVP analysts

B.

Business process analysis

C.

Sensitivity analysis

D.

Exploratory data analysis

Expert Solution
Questions # 9:

Scully Tools Company is currently completing its master budget for the coming year Immediately before the master budget is approved, it is determined that December sales should be revised upward by S120.000 . Scully purchases merchandise on a just-in-time basis, and remits cash immediately through electronic transfer All sales are on account. 20% of the sales are collected in the month of sale, and 80% in the month following the sale. Scully's gross profit percentage is 30%. What effect will this budget revision have on Scully's pro forma statement of cash flows?

Options:

A.

Cash will decrease by $84,000

B.

Cash will decrease by $60,000

C.

Cash will increase by $24,000

D.

Cash will increase by $36,000

Expert Solution
Questions # 10:

Which one of the following is not considered to be a Benefit of participative budgeting?

Options:

A.

Managers are held responsible for reaching their goals and cannot shift responsibility by blaming the unrealistic goals demanded by the budget.

B.

Budget estimates are prepared by those in direct contact with various activities

C.

individuals at all organizational levels are recognized as being pan of the team resulting in greater support of the budget

D.

When managers set the final targets for the budget, it reduces top management's concerns about the profitability of operations

Expert Solution
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