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Part 1 Practice Exam 7

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CMA Part 1 Practice Exam 7

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Question 1 of 10

1. Question

Clearview Co. master budget (5,000 units): variable costs $125,000 ($25.00 per unit); fixed costs $60,000. Actual results (5,800 units produced): variable costs $142,100; fixed costs $61,200. What is the flexible budget variance for variable costs, and is it Favorable or Unfavorable?

$2,900 Favorable.
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$2,900 Unfavorable.
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$17,100 Favorable.
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$17,100 Unfavorable.
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Question 2 of 10

2. Question

Trident Co. has the following credit sales history: April $200,000; May $240,000; June $180,000. Historical collection experience: 50% collected in month of sale; 35% in the following month; 12% two months after; 3% uncollectible. What are total budgeted cash collections in June?

$163,800.
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$174,600.
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$185,600.
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$198,000.
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Question 3 of 10

3. Question

Netco’s budget for the coming year includes: Sales volume 12,000 units @ $85.00; Standard variable COGS $38.00/unit; Fixed manufacturing costs $180,000; Variable selling costs $7.00/unit; Fixed selling & admin $95,000; Income tax rate 30%. What is Netco’s budgeted net income after tax?

$143,500.
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$172,000.
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$193,200.
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$205,000.
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Question 4 of 10

4. Question

Which system is specifically characterized by its “interactive” nature and its role in providing support to managers during the decision-making process?

Management Reporting System (MRS)
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Decision Support System (DSS)
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Transaction Processing System (TPS)
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Formalized Reporting System
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Question 5 of 10

5. Question

What is the primary purpose of “data mining” in a performance management context?

To evaluate the technical manner in which a system processes data.
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To transfer data between systems in a machine-readable format via EDI.
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To sift through large amounts of data to search for relationships that provide competitive advantage.
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To produce standard, routine outputs from a transaction processing system.
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Question 6 of 10

6. Question

A company uses a model to identify subgroups of customers most likely to respond to a specific advertising campaign based on age and income. This is an example of which type of analytics?

Descriptive
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Diagnostic
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Predictive
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Prescriptive
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Question 7 of 10

7. Question

When an analyst utilizes “Cluster Analysis,” what is the primary objective?

To validate the quantitative relationship between an independent and a dependent variable.
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To assign known labels to data points to categorize them into pre-defined groups.
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To unite data points with similar characteristics into profiles or clusters.
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To use time-series data to forecast future earnings.
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Question 8 of 10

8. Question

A Big Data project for a resort only uses data from the ski shop’s point-of-sale system, ignoring data from the hotel, restaurant, and ticket office. Which dimension of Big Data is explicitly NOT utilized in this scenario?

Volume
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Velocity
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Variety
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Veracity
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Question 9 of 10

9. Question

ERP systems act as a framework for integrating various business functions. What is a key internal control benefit of the “single database architecture” used in ERPs for cost management?

It ensures that cost data is siloed and inaccessible to unauthorized departments.
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It reduces reliance on centralized repositories for information sharing.
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It provides a centralized repository that allows data to be shared across manufacturing, accounting, and logistics.
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It requires that all data be unstructured to allow for easier analysis.
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Question 10 of 10

10. Question

Hargrove Manufacturing uses activity-based costing (ABC). The company has identified two overhead cost pools: Machine Setup ($120,000) and Quality Inspection ($80,000). Cost drivers are: Machine Setup — 600 setups total; Quality Inspection — 4,000 inspection hours total. Product Alpha requires 90 setups and 800 inspection hours to produce 2,000 units. What is the total overhead cost allocated to Product Alpha, and what is the overhead cost per unit?

Total overhead $34,000; $17.00 per unit.
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Total overhead $38,000; $19.00 per unit.
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Total overhead $40,000; $20.00 per unit.
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Total overhead $44,000; $22.00 per unit.
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Next: CMA Part 1 Practice Exam 8

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CMA Part 1

Practice Exam 1
Practice Exam 2
Practice Exam 3
Practice Exam 4
Practice Exam 5
Practice Exam 6
Practice Exam 7
Practice Exam 8
Practice Exam 9
Practice Exam 10

CMA Part 2

Practice Exam 1
Practice Exam 2
Practice Exam 3
Practice Exam 4
Practice Exam 5
Practice Exam 6
Practice Exam 7
Practice Exam 8
Practice Exam 9
Practice Exam 10

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