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IMANET Certified Management Accountant CMA Exam

Attempt the Certified Management Accountant practice test and solve real exam-like CMA questions to prepare efficiently and increase your chances of success. Our IMANET CMA practice questions match the actual Certified Management Accountant exam format, helping you enhance confidence and improve performance. With our CMA practice exam software, you can analyze your performance, identify weak areas, and work on them effectively to boost your final Certified Management Accountant exam score.

Vendor:	IMANET
Exam Name:	Certified Management Accountant
Registration Code:	CMA
Related Certification:	IMANET CMA Certification
Exam Track:	Accounts Management
Exam Audience:	Account Managers, Financial Analysts,

Total Questions

1336

Last Updated

07-07-2026

Exam Duration

120 MINUTES

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Question: 1

Materials requrements planning (MRP)sometimes results in

ALonger idle periods

BLess flexibility in responding to custoemrs

Cincreased inventory carrying costs

DDecreased setup costs

Answer: D

Explanation:

Among the benefits of MRP are reduced idle time,lower setup costs,lower inventory carrying costs,and increased flexibility in responding to market changes.

Question: 2

Edwards Manufacturing Corporation uses the standard economic order quantity' (EOQ) model. If the EOQ for Product A is 200 units and Edwards maintains a 50-unit safety' stock for the item, what is the average inventory' of Product A?

A250 units.

B150 units.

C125 units.

D100 units.

Answer: B

Explanation:

If safety' stock is 50 units, the receipt of an order should increase the inventory' to 250. That amount will decline to 50 just prior to the receipt of the next order. Thus, the average inventory would be the average of 250 and 50 [(250 + 50)2], or 150 units.

Question: 3

The following data pertain to a 4-year project being considered by Metro Industries:

* A depreciable asset that costs $1,200,000 will be acquired on January 1 . The asset, which is expected to have a $200,000 salvage value at the end of 4 years, qualifies as 3- year property under the Modified Accelerated Cost Recovery System (MACPS).

* The new asset will replace an existing asset that has a tax basis of $150,000 and can be sold on the same January 1 for $180,000.

* The project is expected to provide added annual sales of 30,000 units at $20. Additional cash operating costs are: variable, $12 per unit fixed, $90,000 per year.

* A $50,000 working capital investment that is fully recoverable at the end of the fourth year is required. Metro is subject to a 40% income tax rate and rounds all computations to the nearest

dollar. Assume that any gain or loss affects the taxes paid at the end of the year in which it occurred. The company uses the net present value method to analyze investments and will employ the following factors and rates.

The expected incremental sales will provide a discounted, net-of-tax contribution margin over 4 years of

A$57,600

B$92,160

C. $273,600

D$437,760

Answer: D

Explanation:

Additional annual sales are 30,000 units at $20 per unit. If variable costs are expected to be $12 per unit, the unit contribution margin is $8, and the total before-tax annual contribution margin is $240,000 (30,000 units x $8). The after-tax total annual contribution margin is $144,000 [$240,000 x (1 .0--- 4)]. This annual increase in the contribution margin should be treated as an annuity. Thus, its present value is $437,760 ($144,000 x 3.04 PV of an annuity of $1 at 12% for four periods).

Question: 4

What is the weighted average cost of capital for a firm using 65% common equity with a return of 15%. 25% debt with a return of 6%. 10% preferred stock with a return of 10%. and a tax rate of 35%?

A10.333%

B11275%

C11325%

D12.250%

Answer: C

Explanation:

The cost for equity capital is given as 15%, and preferred stock is 10% The before-tax rate for debt is given as 6%. Which translates to an after-tax cost of 3.9% [6% x (1 --- .35)]. The rates are weighted as follows:

15% x .65 = 9.750

10% x .10 = 1.000

3.9% x .25 = .975

11.725%

Question: 5

Nonprice competitive differentiation of a firm's services may be achieved by

l. A superior image

ll. Varying the offering

lll. Innovation

lV . Improving reliability

All and lll only

Bl, ll, and lV only

Cl, lll and lV only

Dl, ll, lll and lV

Answer: D

Explanation:

Nonprice competitive differentiation is a major issue for services firms. It may be achieved by (1) varying the offering by including secondary service features with the primary service features;(2) improving delivery through greater reliability, resilience (e.g., coping with customer inquiries, recalls, and emergencies), and innovation, and (3) superior image conveyed by symbols and branding

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