CMA Exam: Budgeting Methodologies Question 2

 “Those who mind don’t matter, and those who matter don’t mind.” – Bernard M. Baruch The Question When budgeting, the items to be considered by a manufacturing firm in going from a sales quantity budget to a production budget would be the: A) Expected change in the quantity of finished goods and raw material inventories B) Expected change in the … Read More

CMA Exam: Budgeting Methodologies Question 1

“All our dreams can come true – if we have the courage to pursue them.” – Walt Disney The Question A budgeting approach that requires a manager to justify the entire budget for each period is known as? A) Flexible Budgeting B) Performance Budgeting C) Incremental Budgeting D) Zero-based Budgeting The Analysis

CMA Exam: Planning & Budgeting Question 3

“The surest way not to fail is to determine to succeed.” Richard Brinsley Sheridan The Question ABC Retailing Co. prices its products by adding 30% to its cost. ABC anticipates sales of $715,000 in March, $728,000 in April, and $624,000 in May. ABC’s policy is to have on hand enough inventory at the end of the month to cover 25% of … Read More

CMA Exam: Planning and Budgeting Question 2

“Along with success comes a reputation for wisdom.” Euripides The Question Budgetary Slack can be best described as: A) The planned overestimation of budgeted expenses B) The elimination of certain expenses to enhance budgeted income C) The planned underestimation of budgeted expenses D) A plug number used to achieve a pre-set level of operating income The Analysis

CMA Exam: Planning & Budgeting Question 1

“Don’t judge each day by the harvest you reap but by the seeds that you plant.” Robert Louis Stevenson The Question All of the following are characteristics of the strategic planning process except the: A) Analysis of external economic factors. B) Analysis and review of departmental budgets. C) Emphasis on the long run. D) Review of the attributes and behavior … Read More