[Jan 15, 2023] Free CMA Certification CMA-Strategic-Financial-Management Exam Question
CMA-Strategic-Financial-Management dumps & CMA Certification sure practice dumps
NEW QUESTION 16
All of the following describe ethical leaders except
- A. supportive leaders who encourage employees to adhere to company policy
- B. dedicated leaders who can keep promises and commitment
- C. leaders who demonstrate high ethical standards
- D. flexible leaders how new ethical behavior to be negotiable
Answer: D
NEW QUESTION 17
The human resources manager of BankUS has noted mat me company s employee turnover has increased. He has also had his budget cut, and will have to reduce training for new associates. He has a meeting scheduled with the CFO lo go over risks that his department faces. What should the human resources manager tell the CFO about risk?
- A. He should notify the CFO of a need for additional funding
- B. He should notify the CFO of a potential operations risk
- C. Me does not need to notify me CFO of a potential risk
- D. He should notify the CFO of a potential internal factor risk
Answer: B
NEW QUESTION 18
A management accountant overheard the company's procurement manager discussing a kickback payment for one of the company s recent projects. The procurement manager promised to pay a share to the other person II the arrangement was kept confidential According to the IMA Statement of Ethical Professional Practice which one of the following is the most appropriate action for the management accountant to take?
- A. Take no action since the incident is not related to the accounting department
- B. Discuss the incident with his or her own attorney and consider disassociating from the company
- C. Report the information directly to a nigh-level company executive since it is a serious matter
- D. Call the company's ethics helpline and report the matter anonymously
Answer: C
NEW QUESTION 19
How many units should be produced and sow it AMI'S target net income is $600,000? Snow your calculations.
Apex Manufacturing lnc. (AMI) is a Canada-based company that manufactures a manufactures and unique part for aircrafts. It has few competitors in the market. The company is exposed to exchange rate risk because about 90% of its products are exported to the U.S, and most of its sales contracts are in U.S. dollars. AMI has the capacity to manufacture 1,500 units of the part per year. For the year just ended. AMI manufactured and sold 1,000 units. The operating results are shown below.
Recently, A new customer made a one-area order of 500 units of the part at $1.200 per unit. The CTO asked the controller to analyze this offer. AMI is considering adjusting its sales price next year in a recent meeting, the CFO suggested to use the market-based approach for pricing decisions, bat the controller insisted that the cost-based approach is more favorable to the company.
Answer:
Explanation:
See the explanation for the answer.
Explanation
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NEW QUESTION 20
Each of the following describes a limitation of financial statement analysis except
- A. it Is difficult to compare one company with another even within the same industry due to differences in accounting principles used.
- B. financial statement analysis is based on historical costs rattier man current costs which can lead to distortions in measurement
- C. financial statements may include significant estimated items which may distort results
- D. financial statement analysis can use more than one measure to examine the interrelationships among data
Answer: D
NEW QUESTION 21
Calculate Guda's marginal cost of capital- Show your calculations.
Apex Manufacturing lnc. (AMI) is a Canada-based company that manufactures a manufactures and unique part for aircrafts. It has few competitors in the market. The company is exposed to exchange rate risk because about 90% of its products are exported to the U.S, and most of its sales contracts are in U.S. dollars. AMI has the capacity to manufacture 1,500 units of the part per year. For the year just ended. AMI manufactured and sold 1,000 units. The operating results are shown below.
Recently, A new customer made a one-area order of 500 units of the part at $1.200 per unit. The CTO asked the controller to analyze this offer. AMI is considering adjusting its sales price next year in a recent meeting, the CFO suggested to use the market-based approach for pricing decisions, bat the controller insisted that the cost-based approach is more favorable to the company.
Answer:
Explanation:
See the explanation for the answer.
Explanation
it the company will adjust the selling price mat is if it reduces the profit margin mil decrease as more of its costs are fixed rather man variable in nature hence in has greater sensitivity to increase in sales price
NEW QUESTION 22
Calculate AMI's degree of operating leverage. Show your calculations.
Essay
Apex Manufacturing lnc. (AMI) is a Canada-based company that manufactures a manufactures and unique part for aircrafts. It has few competitors in the market. The company is exposed to exchange rate risk because about 90% of its products are exported to the U.S, and most of its sales contracts are in U.S. dollars. AMI has the capacity to manufacture 1,500 units of the part per year. For the year just ended. AMI manufactured and sold 1,000 units. The operating results are shown below.
Recently, A new customer made a one-area order of 500 units of the part at $1.200 per unit. The CTO asked the controller to analyze this offer. AMI is considering adjusting its sales price next year in a recent meeting, the CFO suggested to use the market-based approach for pricing decisions, bat the controller insisted that the cost-based approach is more favorable to the company.
Answer:
Explanation:
See the explanation for the answer.
Explanation
$1m/$0.5,
2 times
contribution/operating income
They can simply revalue their assets and hence ask for a higher price for their company or they re structure their financing structure by either issuing fleets or reducing me equity by paying a special one off dividend.
NEW QUESTION 23
It there is sufficient capacity to fill the order, which of the following are relevant for a special order decision?
- A. Incremental fixed cost incremental contribution and incremental variable cost
- B. Incremental sales revenue, incremental net income, and incremental variable cost
- C. Incremental sales revenue incremental variable cost and incremental fixed cost
- D. Incremental sales revenue, incremental contribution and incremental variable cost
Answer: C
NEW QUESTION 24
Studler's Restaurant is considering a contract to supply the weal senior citizen center with 10,000 meals.
Regular sales at regular prices would be unaffected. The food cost for each meal s S3 Additional costs incurred as a result of the contract would De variable overhead of S 50 and variable selling general and administrative costs of S SO per meal sold. The selling price per meal would be $5, A total of $20,000 in fixed costs would be allocated at $2 per meal. The fixed costs are part of an overall total of $500,000 in annual fixed costs incurred regardless of the contract. What will be the effect on pretax income if Studiers takes the special order?
- A. $10.000 decrease
- B. $20, 000 increase
- C. $20.000 decrease
- D. $10, 000 increase
Answer: D
NEW QUESTION 25
A company is considering a capital project that includes the purchase of a new machine costing $100,000. The machines estimated useful life is five years with no salvage value. The annual operating cash inflows from the project are shown below.
Given an effective income tax rate of 20% and using straight-line depreciation, what would be the projects net cash flow in Year 3?
- A. $20,000
- B. $16,000
- C. $36,000
- D. $32,000
Answer: C
NEW QUESTION 26
Below is the income statement and balance sheet for a retail corporation.
What is the corporation's debt to total capital in year 2?
- A. 41%
- B. 6%
- C. 19%
- D. 71%
Answer: C
NEW QUESTION 27
A group of nations is considering me formation of a cartel associated with the manufacture and distribution of a product that they each export. Which one of the following outcomes would not be consistent with me formation of a carter?
- A. An increase in the output of the manufactured product
- B. A selling price where marginal revenue equals marginal cost
- C. An increase in the selling price of the manufactured product
- D. An increase m the net profits for each of the individual cartel members
Answer: A
NEW QUESTION 28
A manufacturing company is reviewing the budget for one of its component parts for next year based on the need for 5.000 units.
The company receives a bid from a supplier offering lo provide (lie needed component for a price of $115 per unit The company is deciding whether to make or buy the component What decision should the firm make if (1) the fixed facilities costs can be avoided or (2) if the fixed facilities costs cannot be avoided If purchasing from the supplier?
- A. (1) Make; (2) Buy
- B. (1) Buy; (2) Buy
- C. (1) Buy; (2) Make
- D. (1) Make; (2) Make
Answer: D
NEW QUESTION 29
A co league claims that morality is usually perceived and interpreted differently by different people so there is no method to judge whether one decision is better than another. This is commonly referred to as
- A. moral philosophy
- B. moral relativism
- C. comparative ethics
- D. ethical relativity
Answer: B
NEW QUESTION 30
A company with idle capacity has been contacted by a new customer to supply 10,000 units of its products for a special batch order its costs are as follows.
The company's normal soling price is SI00 per unit but the customer is wiling to pay only S70 pet unit Should the company accept the special order''
- A. No, because the special order will reduce operating profit by $250 000
- B. No, because the special order will reduce operating profit by S50 000
- C. Yes, because the special order will increase operating profit by S250 000
- D. Yes, because the special order will increase operating profit by S100 000
Answer: B
NEW QUESTION 31
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