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CMA-Financial-Planning-Performance-and-Analytics Exam Dumps : CMA Part 1: Financial Planning - Performance and Analytics Exam

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CMA Part 1: Financial Planning - Performance and Analytics Exam Questions and Answers

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Question 1

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?

Options:

A.

All spoilage will be recognized as normal spoilage

B.

All spoilage will be recognized as abnormal spoilage

C.

All spoilage will be assigned to ending finished goods inventory

D.

There will be no effect

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Question 2

MJC Co. is considering adopting a variable costing system using variable costing rather than absorption costing will be more advantageous to MJC because the variable costing system

Options:

A.

more readily provides data needed for cost/volume/profit analyses done by management

B.

focuses on gross profit as the best indicator of a company's ability to cover its expenses

C.

assigns all costs of manufacturing to products in order to properly match cost of production with revenues

D.

allows the financial statements released to internal users to agree with the GAAP financial statements issued for external use

Question 3

Which of the following represents a significant deficiency m the design of controls?

Options:

A.

Failure to follow up and correct previously identified internal control deficiencies

B.

Inadequate controls over access to computer systems, data and files

C.

Evidence of misrepresentation by accounting personnel

D.

Management overrides of the accounting for transactions

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