Free IMANET CMA Exam Questions

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Total 1336 Questions | Updated On: Mar 27, 2025

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Question 1

A manufacturer has been approached by a new customer who wants to place a one-time order for a

component similar to one that the manufacturer makes for another customer. Existing sales will not

be affected by acceptance of this order. The manufacturer has a policy of setting its targeted selling

price at 60% over full manufacturing cost. The manufacturing costs and the targeted selling price for

the existing product are presented as follows.

The manufacturer has excess capacity to produce the quantity of the component desired by the new

customer. The direct materials used in the component for the new customer would cost the

manufacturer $0.25 less than the component currently being made. The variable selling expenses

(packaging and shipping) would be the same, or $0.90 per unit. Under these circumstances, the

minimum unit price at which the manufacturer would accept the special order is one exceeding.

A : $8.35

B : $9.25

C : $14.00

D : $14.80

Answer: B

Question 2

Austin Manufacturing, which is subject to a 40% income tax rate, had the following operating data

for the period just ended.

Management plans to improve the quality of its sole product by (1) replacing a component that costs

$3.50 with a higher-grade unit that costs $5.50, and (2) acquiring a $180,000 packing machine. Austin

will depreciate the machine over a 10-year life with no estimated salvage value by the straight-line

method of depreciation. If the company wants to earn after-tax income of $172,800 in the upcoming

period, it must sell

A : 19,300 units.

B : 21,3l6units.

C : 22,500 units.

D : 23,800 units.

Answer: C

Question 3

A market follower is a firm that does not choose to challenge the market leader. This firm must have

its own strategy for maintaining its share of the market. When the firm improves products that are

already on the market and operates in different markets, it is a (n).

A : unterfeiter.

B : oner

C : itator.

D : apter.

Answer: D

Question 4

From the view point of the investor, which of the following securities provides the least risk?

A : rtgage bond.

B : bordinated debenture.

C : come bond.

D : bentures.

Answer: A

Question 5

BCD Corp. outsourced an order for shovel handles to RST Corp. because BCD could not fill the order.

By having RST produce the order, BCD was able to realize $10000 in sales profits that otherwise

would have been lost. The outsourcing cost added a cost of $1 .000, but BCD was ahead by $9000

when the order was completed. Which of the following statements is correct regarding BCD’s action?

A : use of resource markets outside of BCD involves opportunity cost.

B : counting profit is total revenue minus explicit costs and implicit costs.

C : plicit costs are not opportunity costs because they are internal costs.

D : plicit costs are opportunity costs from purchasing shovel handles from a resource market.

Answer: A

Page: 1 / 268

Total 1336 Questions | Updated On: Mar 27, 2025

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