CMA (Certified Management Accountant) Practice Questions — All Questions
AllPlanning, Budgeting & ForecastingPerformance ManagementCost ManagementInternal ControlsFinancial Statement Analysis
4 questions
Planning, Budgeting & Forecasting
A flexible budget differs from a static budget because it:
- a.Ignores variable costs
- b.Is prepared only after the year ends
- c.Adjusts budgeted amounts for the actual level of activity✓
- d.Never changes
A flexible budget flexes budgeted costs to the actual activity level.
Planning, Budgeting & Forecasting
The starting point for most operating budgets is usually the:
- a.Sales (revenue) budget✓
- b.Capital budget
- c.Balance sheet
- d.Cash budget
The sales budget typically drives the rest of the operating budgets.
Planning, Budgeting & Forecasting
A budget prepared assuming no prior-year baseline, justifying every expense, is:
- a.Incremental budgeting
- b.Capital budgeting
- c.Zero-based budgeting✓
- d.Flexible budgeting
Zero-based budgeting justifies all expenses from a zero base.
Planning, Budgeting & Forecasting
A master budget is:
- a.Only the sales plan
- b.Only the cash forecast
- c.The comprehensive set of an organization's budgets✓
- d.A single department's budget
The master budget aggregates operating and financial budgets.