# CMA ima questions part 1 Essay examples

6251 Words Nov 21st, 2014 42 Pages
CMA Part 1 – Financial Planning, Performance, & Control
Examination Practice Questions

CMA Part 1 – Financial Planning, Performance and Control
Examination Practice Questions

1. A company is preparing the sales budget for two potential products. Both products require the use of the same manufacturing equipment, which is only available for 60 hours each month. The contribution margin of product A is \$95 per unit and the contribution margin of product B is \$55 per unit. Product A requires 4 hours of machine time per unit and product B requires 2.5 hours per unit. In order to efficiently allocate the equipment resources, the company should manufacture
a.
b.
c.
d.

product A,
Which one of the following best represents the sales pattern that Wheeler has experienced in the past three years?
a.
b.
c.
d.

Cyclical.
Irregular.
Seasonal.
Trend.

9. Ryotel is conducting market research to determine whether or not to launch a new product.
Management believes there is a 60% probability the research will yield favorable results with a 40% probability the results will be unfavorable. If the results are favorable, there is a 70% probability the product will be successful; if the results are unfavorable, the probability the product will be unsuccessful is 75%. If the product is successful, Ryotel anticipates annual profits of \$10,000,000, but if the product is unsuccessful, Ryotel will lose \$4,000,000 each year. The expected value of the new product’s annual profit is
a.
b.
c.
d.

\$3,000,000.
\$3,280,000.
\$4,000,000.
\$5,300,000.

10. Last year, Bell Corporation’s sales totaled \$200 million. In the current year Bell believes there is a 10% chance sales will decrease to \$180 million due to the loss of a major customer, Rock Company. Bell also estimates there is a 40% probability sales will remain constant, a 30% chance sales will increase to \$240 million, and a 20% probability sales will increase to \$250 million. The expected value of Bell’s sales in millions for the

## Related Documents

• ###### Essay Case Study

Product Costing and Decision Analysis in the Wine Industry Priscilla S. Wisner University of Tennessee BACKGROUND The Aproveche family owns and operates a small independent winery located in the Napa Valley California American Viticultural Area (AVA).1 À Votre Santé (AVS), which means “to your health” in French, enjoys a reputation for producing small amounts of quality wines. AVS was started by Jerome Aproveche in 2005 as an extension of the family’s grapegrowing operations and as a means to involve…

Words: 1980 - Pages: 8
• ###### Cost Accounting 13th Edition Chapter 1 Solution Essay

CHAPTER 1 THE ACCOUNTANT’S ROLE IN THE ORGANIZATION ACCOUNTANT’ See the front matter of this Solutions Manual for suggestions regarding your choices of assignment material for each chapter. 1-1 Management accounting measures, analyzes and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting and is not restricted by generally accepted accounting principles (GAAP). Financial accounting focuses…

Words: 4847 - Pages: 20
• ###### Abm Management Essay

philosophy of activity management applied in industries and organisations other than manufacturing. A Part 1 General FAQs Part 2 Practical guidance on implementing ABM ctivity-based costing and activity-based management have been around for more than fifteen years. Most forward-thinking companies have implemented them, or are in the process of doing so. A A A Part 3 Checklist Part 4 Further reading and bibliography BC is not a method of costing, but a technique for managing the…

Words: 3391 - Pages: 14
• ###### Essay Case

2014 STUDENT C ASE C OMPETITION The Student Case Competition is sponsored annually by IMA® to provide an opportunity for students to interpret, analyze, evaluate, synthesize, and communicate a solution to a management accounting problem. Starfire’s Dilemma Capacity at What Cost? By Thomas L. Albright, CPA; Paul E. Juras, CMA, CPA; and Russ Elrod F ounded in 1968 by Alan James, Starfire Trucking Company has grown into a sizeable operation with 90 trucks and 180 trailers. Recently…

Words: 2727 - Pages: 11
• ###### The Changing Role of Managerial Accounting in a Dynamic Business Environment

CHAPTER 1 THE CHANGING ROLE OF MANAGERIAL ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT Learning Objectives 1. Define managerial accounting and describe its role in the management process. 2. Explain four fundamental management processes that help organizations attain their goals. 3. List and describe five objectives of managerial accounting activity. 4. Explain the major differences between managerial and financial accounting. 5. Explain where managerial accountants…

Words: 2210 - Pages: 9
• ###### Acc 206 Complete Course Principles of Accounting Ii Essay

Accounting II –Entire Class ACC 206 Week 1 Assignment Chapter 1 Problems Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. and so on… Chapter 1 Exercise 4: 4. Overview of direct and…

Words: 3969 - Pages: 16
• ###### Implementing Integrated Supply Chain Essay

Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Finance Business Solutions Group at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Special thanks go to Randolf Holst, CMA (Canadian), Manager of Knowledge Creation at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I)…

Words: 12987 - Pages: 52
• ###### Chapter Five Case Essay example

CHAPTER 5 Activity-Based Management and Activity-Based Costing Questions 1. Activity-based management is a management approach that associates the activities executed by an organization with the value customers derive from products. Efficiency and effectiveness are achieved by reducing the level of activities that do not create value for the customer and by improving execution of activities that do create customer value. Specific tools beneath the ABM umbrella include activity…

Words: 8280 - Pages: 34
• ###### Job Order Essay

CHAPTER 1 Managerial Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises *1. Explain the distinguishing features of managerial accounting. 1, 2, 3 1 1 1 *2. Identify the three broad functions of management. 4, 5, 6, 7, 8 2, 3 1 *3. Define the three classes of manufacturing costs. 11, 12 4, 5, 7 2 *4. Distinguish between product and period costs. 13 6 2 *5.…

Words: 9979 - Pages: 40
• ###### Management Cases Essay

Chapter 5 Activity-Based Costing and Customer Profitability Analysis Cases |5-1 |Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) | |5-2 |Columbo Soft-Serve Frozen Yogurt: Using Activity Based Costing To Assess Channel/Customer Profitability | |5-3 |Wilson Electronics (A) | |5-4 |Wilson…

Words: 33139 - Pages: 133