Attested CMA-Financial-Planning-Performance-and-Analytics Dumps PDF Resource [2023]
Latest CMA-Financial-Planning-Performance-and-Analytics Actual Free Exam Questions Updated 112 Questions
NEW QUESTION 50
What is the best type of accounting system control to help prevent improper manipulation of data and to ensure the continued, satisfactory use of the hardware and software?
- A. input controls such as a limit check
- B. Processing controls such as limiting access
- C. Output controls such as a maximum check
- D. Throughput controls such as a hash total
Answer: A
NEW QUESTION 51
Marsalis Products Inc. manufactures and sells batteries and cables for computers. The latest information on the products and their costs is shown in the following table.
Note: 1 Fixed manufacturing cost of S1.500,000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine hour.
Based on the information above, what is the annual amount of earnings before interest and taxes (EBIT)?
- A. $4,420,000.
- B. $1,460,000.
- C. $2,920,000.
- D. $2,960.000.
Answer: B
NEW QUESTION 52
Which one of the following represents a temporary difference under U.S GAAP?
- A. Accrued liabilities
- B. interest received in municipal bonds
- C. Fines and expenses resulting from violation of the law
- D. Percentage depletion of natural resources
Answer: A
NEW QUESTION 53
The type of data anarytics mat seeks to identify the best action to take in oraer to achieve a desired result is
- A. directive analytics
- B. diagnostic analytics
- C. prescriptive analytics
- D. predictive analytics
Answer: C
NEW QUESTION 54
A company had 100.000 shares of common stock issued and outstanding at January 1. During the year, the company took the following actions:
- A. $100,000.
- B. $75,000.
- C. $50.000
- D. $150,000
Answer: A
NEW QUESTION 55
A company has four product noes and must decide to discontinue one so mat it can focus on its more profitable products Information about the four product lines is shown below.
if the company evaluates profitability based on ROl. which product line should be discontinued?
Calculator
- A. Product line W.
- B. Product line Y.
- C. Product line Z.
- D. Product line X.
Answer: D
NEW QUESTION 56
After a recent earthquake in a nearby city the board of directors of a company has requested a review of the company s disaster recovery plan Which of the following would be classified as a weakness in the company's disaster recovery plan?
- A. Management has decided not to maintain a hot site because it was determined that the costs outweigh the benefits.
- B. The details of the disaster recovery plan stipulate that internal audit should review the plan every other year rather than annually.
- C. Members of the company's disaster recovery team maintain current copies of the disaster recovery plan m their homes.
- D. A cold site with backup data and documents is maintained on the basement level of the company s headquarters.
Answer: D
NEW QUESTION 57
Hill Corporation sola some of its accounts receivable including one from Custom Company, to Dale incorporated without recourse, Because of this transaction.
- A. Custom Company has no recourse against Hill Corporation
- B. Hill Corporation has no recourse against Dale Incorporated
- C. Dale incorporated has no recourse against mil Corporation
- D. Custom Company has no recourse against Dale incorporated
Answer: C
NEW QUESTION 58
Which one of the following is the most important factor in the successful implementation of a balanced scorecard?
- A. Obtaining management buy-in and support
- B. Providing a feedback mechanism
- C. Linking the scorecard to external criteria
- D. Setting appropriate measurement criteria
Answer: C
NEW QUESTION 59
The following information pertains to Wang Corporation which uses standard costing for its materials.
The following information pertains to Wang Corporation which uses standard costing for its materials.
What is me amount of the unfavorable material-related variance that would appear on a report to the production foreman?
- A. $5,000
- B. $4,000
- C. $5,600
- D. $6,000
Answer: D
NEW QUESTION 60
when considering data visualization elements, the incorporation or color, shape, size, or animation can be used to address
- A. data myopia
- B. data distortion
- C. complexity
- D. multiple variables
Answer: D
NEW QUESTION 61
A plastics manufacturing company is analyzing business units using the BCG Growth-Share Matrix Business Unit A is a market leader with high market share in the plastic container market Unit A's growth in the past three years has been limited due to high regulation and decreasing customer demand Customer satisfaction tor the unit is high Business Unit B is a relatively new business unit which entered the market two years ago with a new, innovative plastic organizer Unit B holds just 5% of the market share but growth has been high for this new product line Throughput time for this unit is lower than the company average with a high number of reworks each month. Which one of the following correctly identifies the BCG Growth-Share matrix for Business Unit A and Business Unit B. respectively?
- A. Cash cow, question mark
- B. Star dog
- C. Question mark, question mark-
- D. Star cash cow
Answer: D
NEW QUESTION 62
Faxton and Rexford are competitor in the same industry Faxton utilizes an incentive program mat focuses solely on net income Rexford uses customer service and employee development in addition to net income in its incentive program. Over time. Faxton can be expected to
- A. consistently be more profitable than Rexford due to not funding training programs
- B. have higher sales growth than Rexford due to management s strong focus
- C. be more profitable than Rexford initially Put lose this advantage
- D. be less likely to misstate earnings due to the importance of earnings to management
Answer: D
NEW QUESTION 63
would you recommend any changes to the job responsibilities of ZFl's payroll administrator from an internal control perspective? Explain why.
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).
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
The work of the payroll administrator is not supervised so he can add fake employees and get their salaries in account operated by him...... A supervisory or department heads should review his work before processing.
Secondly an accountant should be responsible for passing the entries rather than the administrator, the system lacks segregation of duties which can facilitate fraud and errors.
NEW QUESTION 64
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. $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
- B. $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
- C. All of the under-applied manufacturing overhead should be charged to Cost of Goods Sold for the year.
- D. 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
Answer: B
NEW QUESTION 65
Trans Action inc. (TAI) is a multidivisional supplier of power train components to the automobile industry.
Following is selected information for the year just ended for each of the three divisions. Gear Axle and Housing.
The tai Board of Directors has decided to reward the employees or the divisions by allowing them to share in a bonus pool equal to S100.000 for each percentage point the return on investment (ROI) earned by their division exceeded the ROI of comparable firms as shown in the table below.
Rank the amounts in the bonus pools for the respective divisions from highest to lowest.
- A. Axle, Housing, Gear
- B. Axle, Gear, Housing
- C. Housing, Axle, Gear.
- D. Gear. Housing, Axle
Answer: C
NEW QUESTION 66
Collins Corporation manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause the least concern would be a
- A. 30% unfavorable direct labor efficiency variance caused by idle time while waiting for goods to be received from a previous manufacturing department
- B. 6% unfavorable fixed overhead volume variance caused by work stoppages because of missing parts
- C. 12% unfavorable variable overhead spending variance caused by keeping equipment running during times when there is no production activity
- D. 9% unfavorable material price variance caused by changing to a supplier that would support the company's just-in-time needs.
Answer: D
NEW QUESTION 67
In trying to predict the returns on the stock market, a novice investor collected data on the sightings of sperm whales off the eastern coast of North America and the performance of the Dow Jones Industrial Average (the Dow) A regression of the two variables resulted in a correlation coefficient of -0.90 or a coefficient of determination (r2) of 81%. The sightings of whales seemed to be negatively correlated with the performance of the Dow. The novice investor should
- A. conclude that the poor performance of the Dow leads to high sightings of sperm whales
- B. conclude that there is a cause-and-effect relationship between the two variables
- C. conclude that this is an example of spurious correlation
- D. track the sighting of sperm whales and buy the Dow when sightings are low: conclude that sperm whale sightings are a strong indicator of poor performance of the Dow
Answer: C
NEW QUESTION 68
Which of the following represents a significant deficiency m the design of controls?
- A. Failure to follow up and correct previously identified internal control deficiencies
- B. Management overrides of the accounting for transactions
- C. Evidence of misrepresentation by accounting personnel
- D. Inadequate controls over access to computer systems, data and files
Answer: D
NEW QUESTION 69
Stone Ltd manufactures socket wrenches .The company produced 400 000 wrenches and sold 350,000 this year. The following information pertains to the costs accumulated in Stone's inventory.
What is the difference between Stones operating income under absorption costing and variable costings
- A. $28,000 lower using variable costing
- B. $36.500 higher using absorption costing
- C. $19,750 lower using variable costing
- D. $16,750 higher using absorption costing.
Answer: D
NEW QUESTION 70
Discuss how FDL's allocation of shared corporate services costs may overstate the profitability of the Food-To-Go division, and provide your recommendation on shared corporate services costs allocation.
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
The revenues of food to go division are less as compared to airline catering division which means less proportion of the overheads win he diverted to the division irrespective of the use Recommended method
-stand-alone
-incremental method of allocating the snares corporate service costs|
NEW QUESTION 71
Explain whether ZFI's current overhead allocation method is appropriate.
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).
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.
Time Value Table
Answer:
Explanation:
See the Answer below in Explanation details.
Explanation
The current overhead allocation method is not appropriate as both divisions are labour and machine intensive.
hence an appropriate overhead allocation basis would be labour and machine hours for the meat and bakery division rather than the number of output produce as this doesn't depict the actual usage of resources causing the overheads to be incurred
NEW QUESTION 72
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. 131,340.
- C. 132,600.
- D. 132,000.
Answer: A
NEW QUESTION 73
Describe one example of predictive data analytics that the proposed human resources management software can perform.
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).
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
The HRm software can help lo predict the turnover rate of the labour which then can he used by the department heads to counter and ensure that the talent is retained within the company]
2nd Essay
NEW QUESTION 74
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