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Part 1 Practice Exam 5

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CMA Part 1 Practice Exam 5

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Question 1 of 10

1. Question

Joint costs are:

Costs incurred after the split-off point.
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Costs incurred to produce two or more products from a single input.
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Costs shared between two different companies in a merger.
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Always allocated based on the weight of the products.
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Question 2 of 10

2. Question

The ‘Step-down’ method of allocating service department costs:

Allocates costs only from service departments to production departments.
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Allocates costs in both directions between all departments.
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Allocates costs from some service departments to other service departments in a one-way sequence.
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Is the simplest and most accurate method of allocation
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Question 3 of 10

3. Question

Total Quality Management (TQM) is best described as:

A technique for inspecting products at the end of the line.
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A philosophy of continuous improvement involving every employee in the organization.
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A system for reducing inventory levels to zero.
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A method for calculating the cost of scrap.
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Question 4 of 10

4. Question

Just-in-Time (JIT) manufacturing systems aim to:

Increase safety stock to prevent stockouts.
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Minimize inventory levels and reduce waste.
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Produce as much as possible to achieve economies of scale.
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Maximize the number of suppliers used.
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Question 5 of 10

5. Question

Which of the following is considered an ‘Internal Failure Cost’ in a quality cost report?

Product testing and inspection.
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Rework of defective units before they are shipped.
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Warranty repairs.
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Quality training for employees.
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Question 6 of 10

6. Question

The Theory of Constraints (TOC) focuses on:

Maximizing the efficiency of every department.
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Managing and improving the bottleneck in a process.
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Reducing direct labor costs through automation.
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Expanding the product line to increase revenue.
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Question 7 of 10

7. Question

The COSO Internal Control Integrated Framework identifies five components of internal control. Which component is considered the ‘foundation’ for all other components?

Risk Assessment.
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Information and Communication.
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Control Environment.
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Monitoring Activities.
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Question 8 of 10

8. Question

Under the COSO framework, the ‘Monitoring’ component involves:

Establishing a code of conduct.
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Assessing the quality of internal control performance over time.
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Identifying external threats like new competitors.
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Recording journal entries.
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Question 9 of 10

9. Question

Which of the following parties is ultimately responsible for the internal control system within a corporation?

The Internal Audit department.
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The External Auditor.
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The Board of Directors and Senior Management.
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The IT Security Officer.
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Question 10 of 10

10. Question

Section 404 of the Sarbanes-Oxley Act (SOX) requires:

The external auditor to prepare the company's financial statements.
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Management to issue a report on the effectiveness of internal control over financial reporting.
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All employees to be certified in internal auditing.
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The company to eliminate all risks.
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Next: CMA Part 1 Practice Exam 6

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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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