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IMA CMA Part 1: Financial Planning - Performance and Analytics Sample Questions:

1. A manufacturing company is 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) A participative standard because the employees will more likely view the standard as reasonable.
B) An authoritative standard because the employees helped to determine the standard
C) A participative standard because It includes management's Input to determine the standard.
D) An authoritative standard because management still will ensure the standard fits the strategy


2. 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 Fixed manufacturing 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 interest and taxes (EBIT)?

A) $1,460,000.
B) $2,920,000.
C) $2,960.000.
D) $4,420,000.


3. 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.


4. 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?

A) Common stock will increase by $10.000.000
B) Retained earnings will decrease by $9.000.000
C) Paid-in capital will increase by $9,000.000
D) Retained earnings will decrease by $1.000.000


5. A company carried out the following activities for the current period.

According to U.S GAAP, what amount of cash was provided by financing activities?

A) ($45.000)
B) ($55.000).
C) ($40, 000).
D) ($25,000).


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: Only visible for members
Question # 4
Answer: C
Question # 5
Answer: A

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