CMA (Certified Management Accountant) Practice Questions — All Questions
AllPlanning, Budgeting & ForecastingPerformance ManagementCost ManagementInternal ControlsFinancial Statement Analysis
4 questions
Performance Management
A favorable variance generally means actual results were:
- a.Worse than budget
- b.Better than the budgeted/standard amount✓
- c.Exactly on budget
- d.Not measurable
A favorable variance means performance beat the standard or budget.
Performance Management
A balanced scorecard evaluates performance using:
- a.Financial and non-financial perspectives✓
- b.Only net income
- c.Only stock price
- d.Only the cash balance
The balanced scorecard adds customer, internal-process, and learning perspectives to financials.
Performance Management
Return on investment (ROI) for a division is generally:
- a.Sales minus expenses
- b.Total assets only
- c.Operating income divided by invested capital✓
- d.Cash divided by liabilities
ROI relates a division's income to the capital invested to earn it.
Performance Management
Residual income is operating income minus:
- a.Depreciation
- b.Taxes only
- c.Cost of goods sold
- d.A capital charge on invested capital✓
Residual income subtracts a required return (capital charge) from operating income.