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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

24-08-2026

Exam Duration

120 MINUTES

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Question: 1

Managers must make decisions in many different situations. A manager must make a subjective decision when the environment is one in which

AUncertainty exists.

BRisk exists.

CCertainty may be achieved.

DProbabilities can be calculated.

Answer: A

Explanation:

Uncertainly exists when the results of possible outcomes cannot even be estimated using the tools of statistical probability'. This environment is the most difficult for decision making because objective mathematical analyses cannot be made. Hence, creativity' is required in the decision-making process, and reliance on the educated guess rather than the probabilistically calculated estimate is necessary.

Question: 2

''Discretionary costs'' are

ACosts which management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers.

BCosts which are likely to respond to the amount of attention devoted to them by a specified manager.

CCosts which are governed mainly by past decisions that established the present levels of operating and organizational capacity and which only change slowly in response to small changes in capacity.

DCosts which will be unaffected by current managerial decisions.

Answer: A

Explanation:

Discretionary costs are those that are incurred in the current period at the ''discretion'' of management and are not required to fill orders by customers.

Question: 3

Capital Invest, Inc. uses a 12% hurdle rate for all capital expenditures and has done the following analysis for four projects for the upcoming year:

Which project(s) should Capital Invest, Inc. undertake during the upcoming year if it has only $600,000 of funds available?

AProjects 1 and 3.

BProjects 2, 3, and 4.

CProjects 2 and 3.

DProjects 3 and 4.

Answer: D

Explanation:

Given that only $600,000 is available and that each project costs $200,000 or more, no more than two projects can be undertaken. Because Projects 3 and 4 have the greatest NPVs, profitability indexes, and IRRs, they are the projects in which the company should invest.

Question: 4

A per-unit transfer price from the Video Cards Division to the Entertainment Division at full cost. $9.15, would

AAllow evaluation of both divisions on a competitive basis.

BSatisfy the Video Cards Division's profit desire by allowing recovery of opportunity costs.

CProvide no profit incentive for the Video Cards Division to control or reduce costs.

DEncourage the Entertainment Division to purchase video cards from an outside source.

Answer: C

Explanation:

A transfer price is the amount one segment of an organization charges another segment for a product. The selling division should be allowed to recover its incremental cost plus the opportunity cost of the transfer. Hence, in a competitive market, the seller should be able to charge the market price. Using full cost as a transfer price provides no incentive to the seller to control production costs. Parkside, Inc. has several divisions that operate as decentralized profit centers. Parkside's Entertainment Division manufactures video arcade equipment using the products of two of Parkside's other divisions. The Plastics Division manufactures plastic components, one type that is made exclusively for the Entertainment Division, while other less complex components are sold to outside markets, The products of the Video Cards Division are sold in a competitive market however, one video card model is also used by the Entertainment Division. The actual costs per unit used by the Entertainment Division are presented in the next column.

The Plastics Division sells its commercial products at full cost plus a 25% markup and believes the proprietary plastic component made for the Entertainment Division would sell for $6.25 per unit on the open market. The market price of the video card used by the Entertainment Division is $10.98 per unit.

Question: 5

Yipann Corporation is reviewing an investment proposal. The initial cost, as well as other related data for each year. are presented in the schedule below. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the Yipann uses a 24% after4axtargetrate of return for new investment proposals. The discount figures for a 24% rate of return are given.

The traditional payback period for the investment proposal is

A.875 years.

B1.833 years.

C2.250 years.

DOver5years.

Answer: C

Explanation:

The payback period is the time required to recover the initial investment. The net cash inflows used to determine the payback period are not discounted. The initial cost was $105,000, and inflows during the first 2 years were $95,000 ($50,000 + $45,000). Thus, the first $10,000 ($105,000 --- $95,000) of the third year's net cash inflows will complete the recovery' of the initial investment. This amount is one1ourth of the third year's inflows. Hence, the payback period is 2.25 years.

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