(Mar-2023) CMA-Financial-Planning-Performance-and-Analytics Exam Dumps Contains FREE Real Quesions from the Actual Exam
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NEW QUESTION 51
An analytic model that seeks to find variables in a data set that will enable customer segmentation is a
- A. market basket analysis
- B. prediction analysis
- C. classification analysis
- D. clustering analysis
Answer: A
NEW QUESTION 52
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. Retained earnings will decrease by $9.000.000
- B. Paid-in capital will increase by $9,000.000
- C. Retained earnings will decrease by $1.000.000
- D. Common stock will increase by $10.000.000
Answer: B
NEW QUESTION 53
Which one of the following represents a temporary difference under U.S GAAP?
- A. interest received in municipal bonds
- B. Accrued liabilities
- C. Fines and expenses resulting from violation of the law
- D. Percentage depletion of natural resources
Answer: B
NEW QUESTION 54
GorCo anticipates 10% sales growth each month for the next three months, and plans to sell 120.000 units of finished goods In the first month. The company plans production so that ending inventory is equal to 5% of the next month's budgeted sales On GorCo's production budget for the second month the number of finished goods units to be produced would be
- A. 132,660.
- B. 132,000.
- C. 131,340.
- D. 132,600.
Answer: A
NEW QUESTION 55
Throughout June. Carroll Company purchased 75,000 pounds of raw materials at a cost of $303,750 and used
60 000 pounds of these purchases in production Carroll's standards indicated that each unit of finished goods requires three pounds of material at a cost of $4 per pound Although Carroll had budgeted for 22,000 units of finished goods to be produced during June, only 19,800 units were actually made. The raw material price variance for June that would be most relevant when examining deviations from standard is
- A. $2,970 Unfavorable
- B. $3,750 Unfavorable
- C. $3,300 Unfavorable
- D. $3,000 Unfavorable
Answer: B
NEW QUESTION 56
Scully Tools Company is currently completing its master budget for the coming year Immediately before the master budget is approved, it is determined that December sales should be revised upward by S120.000 .
Scully purchases merchandise on a just-in-time basis, and remits cash immediately through electronic transfer All sales are on account. 20% of the sales are collected in the month of sale, and 80% in the month following the sale. Scully's gross profit percentage is 30%. What effect will this budget revision have on Scully's pro forma statement of cash flows?
- A. Cash will increase by $36,000
- B. Cash will decrease by $60,000
- C. Cash will decrease by $84,000
- D. Cash will increase by $24,000
Answer: C
NEW QUESTION 57
To prevent cyoeratiacks. a company recently implemented penetration testing wnich one of tne following statements best descnbes this test?
- A. An authorized attempt to break through the company's firev.au
- B. An email testing employee compliance with phishing guidelines
- C. A series of attempts to flood the company's network with traffic
- D. A staged break-in of the company s server room after business hours
Answer: A
NEW QUESTION 58
A company incurred the following selected costs In its manufacturing operations during the month.
- A. $20,000
- B. $23,000
- C. $21,000
- D. $22,000
Answer: D
NEW QUESTION 59
Ingle Inc. has adopted a quality management program that considers all defects as avoidable and unnecessary The goal of this program is to have zero defects ingle uses a process costing system and has recognized the cost of normal and abnormal spoilage on its financial statements How will the new quality management program affect the accounting for normal and abnormal spoilage?
- A. All spoilage will be recognized as abnormal spoilage
- B. All spoilage will be recognized as normal spoilage
- C. All spoilage will be assigned to ending finished goods inventory
- D. There will be no effect
Answer: A
NEW QUESTION 60
A company has developed a core competency in data mining. Which one of the following best describes this core competency?
- A. Ability to develop recommendations for action based on the analysts of large data sets
- B. SQL mastery for structuring data as a oasis for applying data analytics
- C. Ability to derive valid information from large databases using statistical techniques
- D. Expertise in extracting data from large volumes of unstructured text using query tools
Answer: C
NEW QUESTION 61
Product liability is best classified as an example of
- A. internal failure costs
- B. external failure costs
- C. prevention costs
- D. appraisal costs
Answer: B
NEW QUESTION 62
A fitness company produces workout video content and snares it online. The company has subscribers all over the world and its subscriber base has shown steady growth Management has approached a popular workout apparel company to discuss potential sponsorship opportunities. The goal is to impress the potential sponsor by showing the growth in total subscribers over the last 12 months. All of the following would be appropriate options for visualizing this data except a
- A. line graph
- B. pie chart
- C. bar graph
- D. table
Answer: B
NEW QUESTION 63
As part of the COSO Internal Control Framework segregation of duties and documentation are included in which of the components of the COSO model below?
- A. Control activities
- B. Operating environment
- C. Information and communication
- D. Risk assessment
Answer: A
NEW QUESTION 64
A company uses the full cost method to determine transfer prices between business units The related data are shown below
Based on these data, what is the transfer price?
- A. $22 50
- B. $25.00
- C. $37.50.
- D. $50.00
Answer: B
NEW QUESTION 65
Explain the difference between the ROI method and the Rl method in performance evaluation Essay Food Depot Ltd (FDD is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants FDL has been profitable m recent years and has a very strong cash position FDL's newest division. Food-To-Go. is an online meal ordering and delivery platform acquired by FDL two years ago.
In 20X7. sales for the entire company were SI billion, with 50% of the business coming from the Airline Catering division. FDL is the country's leading airline catering services provider and controls 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
The Food-To-Go division only contributed 5% of FDL's total sales in 20X7 and is far behind in competing for market share of the online meal ordering and deliver, industry. It is estimated that Food-To-Go's sales were only 20% of the industry leader's sales However, the outlook for the online meal ordering and delivery services industry is bright. The compound annual growth rate of the industry since it started three years ago was 50%. It is estimated the rapid growth of the industry will continue in the foreseeable future.
The costs of shared corporate services are allocated based on each division s revenue FDL usually caps its capital expenditure budget to 4% of budgeted sales revenue In a recent capital budget coordination meeting.
Smith Whitney, the head of the Airline Catering division. complained that his division is underfunded on capital projects . The budgeted capital expenditure had been much less than 4 % of the division's budgeted sales in the past three years He argued that his division is the company's best-performing division, and it needs more funds to maintain its market share m the industry Whitney wants to reduce the capital expenditure budget for Food-To-Go and reallocate those funds to his division.
Susan Wiley, the bead of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company Wiley argues that her division had the highest ROI in 20X7. and it deserves more capital funding FDL's required rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follows (in $ millions).
Answer:
Explanation:
See the Answer below in Explanation details.
Explanation
Return on investment measures the profit earned over the investment amount by a division where as residual income measures the income over the minimum required rate or return on the capital invested amount Return on investment is a percentage based method which is easy to understand by the managers and residual income is more goal congruent however calculations are subjective and subject to assumptions and estimates
NEW QUESTION 66
Which statement below best describes the relationship among a company's organizational structure, policies.
objectives and the effectiveness of the control environment?
- A. The control activities have more influence on the control environment than the organizational structure policies and objectives
- B. Management can determine the organizational structure, policies and objectives to create the control environment after the risks are identified
- C. The policies, organizational structure, and objectives set the foundation tor the internal control components and provide discipline and structure
- D. The control environment often Is completely Independent and distinct from the organizational structure policies. and objectives
Answer: C
NEW QUESTION 67
Edward Pane is an external auditor who is seeking an understanding of the cash receipts process at his new client Pane decides to use a flowchart to analyze the operations for efficiency and control. Which one of the following statements is true with respect to the decision to use a flowchart for this purpose?
- A. Pane should not have selected a flowchart as it is better suited to help with compliance testing of existing controls
- B. Pane property selected the flowchart as a tool to match each of the risks to the corresponding primary control
- C. Pane properly selected the flowchart as it will help to depict the process and identify any missing or inadequate controls
- D. Pane should not use a flowchart as it is used primarily after the risks have been identified
Answer: C
NEW QUESTION 68
Grayson Inc. experienced the following costs per unit this year for one of the direct materials involved in producing its main product
3.1 pounds @ $4 20 per pound = $13.02 per finished unit
For the next year. Grayson expects to produce 7.400 finished units. The price per pound of the direct material is expected to rise 10%. To combat this increase. Grayson has adapted its manufacturing process to reduce the amount of the direct material needed per finished unit by 5% What is the direct materials budget for the next year?
- A. $91,531
- B. $105,983
- C. $101,165
- D. $100,684
Answer: D
NEW QUESTION 69
Personal Solutions manufactures nand-new personal computers and communications devices The company uses a Job-order costing system and applies manufacturing overhead to products on the oasis of machine hours The following estimates were used in preparing the predetermined overhead rate at the beginning of the year.
During the year, weak sales led to a reduction in production and a buildup or inventory Production records provided the following information.
Finished goods inventory included applied overhead of $100.000 while cost of goods sold included applied overhead of $300,000. There was no work-in-process inventory at year end how should the under-applied manufacturing overhead be handled at year end?
- A. All of the under-applied manufacturing overhead should be charged to Cost of Goods Sold for the year.
- B. All of the under-applied manufacturing overhead should be earned over until the subsequent year and used to adjust the estimated predetermined rate for that year
- C. $12.500 of the under-applied manufacturing overhead should be charged to finished goods inventory and S37.500 should be treated as a period cost
- D. $12.500 of the under-applied manufacturing overhead should be charged to finished goods inventory and S37 500 should be charged to Cost of Goods Sold
Answer: D
NEW QUESTION 70
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