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IMA CMA Part 1: Financial Planning - Performance and Analytics Exam Sample Questions (Q25-Q30):

NEW QUESTION # 25
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. 132,600.
  • B. 131,340.
  • C. 132,660.
  • D. 132,000.

Answer: C


NEW QUESTION # 26
Company A currently uses U.S GAAP while Company 8 is currently using IFRS. Both companies are individually in the process of internally developing trademarks that have been demonstrated to be technically and economically feasible Both companies have incurred development costs in the current year with respect to their internally developed trademarks. Which one of the following best describes how Company A and Company B should account for these development costs in their financial statements?

  • A. Company A should capitalize the development costs while Company B should expense the development costs
  • B. Company A should expense the development costs while Company B should capitalize the development costs
  • C. Both Company A and Company B should expense the development costs
  • D. Both Company A and Company B should capitalize the development costs

Answer: C


NEW QUESTION # 27
What is ZF's expected variable overhead cost per pound of food produced? Snow your calculations 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).
CMA-Financial-Planning-Performance-and-Analytics-2e3a8b82189d2c2e173e2ea4ad68978b.jpg
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.

Answer:

Explanation:
See the Answer below in Explanation details.
Explanation
Factory Utilities 30m
Production Payroll 20m
Other Variable Cost 40m
Total Variable OHD 90m
Total Pounds Produced 100m
Hence vanable OHD per pound / 90m= 100m = 0.9


NEW QUESTION # 28
A timber company is evaluating its products to determine whether to continue to further process scrap wood into wood chips, or to just sell the scrap wood to another company. Which of the following statements best describes what the company should consider regarding the potential by-product?

  • A. The company should consider all joint costs throughout the process before it decides if it should process further.
  • B. The company should consider an of the manufacturing costs for Doth products beyond the split-off point.
  • C. The company should consider the incremental operating income beyond the split-off point In Its decision.
  • D. The company should consider all of the separable costs throughout the process as it is incremental.

Answer: C


NEW QUESTION # 29
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. Paid-in capital will increase by $9,000.000
  • C. Retained earnings will decrease by $9.000.000
  • D. Retained earnings will decrease by $1.000.000

Answer: B


NEW QUESTION # 30
......

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