CMA (Certified Management Accountant) Practice Questions — All Questions
AllPlanning, Budgeting & ForecastingPerformance ManagementCost ManagementInternal ControlsFinancial Statement Analysis
4 questions
Cost Management
Contribution margin equals sales revenue minus:
- a.All fixed costs
- b.Variable costs✓
- c.Taxes
- d.Depreciation
Contribution margin is sales minus variable costs; it covers fixed costs and profit.
Cost Management
At the break-even point:
- a.Total revenue equals total costs (zero profit)✓
- b.Profit is maximized
- c.Fixed costs are zero
- d.Variable costs are zero
Break-even is where total revenue exactly covers total costs.
Cost Management
A cost that stays constant in total as activity changes (within a range) is a:
- a.Variable cost
- b.Marginal cost
- c.Fixed cost✓
- d.Opportunity cost
Fixed costs remain constant in total over the relevant range.
Cost Management
Activity-based costing (ABC) assigns overhead based on:
- a.Direct labor hours only
- b.A single plant-wide rate always
- c.Sales revenue
- d.Cost drivers that cause the activities✓
ABC traces overhead using activities and their cost drivers for more accuracy.