Amazon
Avaya
Cisco
CompTIA
CrowdStrike
EC-Council
EXIN
Fortinet
Google
ISC
ISC2
ITIL
Juniper
Microsoft
NVIDIA
Okta
Palo Alto Networks
Salesforce
All Vendors
  1. Home
  2. Financial
  3. CMA

Financial CMA Exam (page: 10)
Financial Certified Management Accountant
Updated on: 15-Feb-2026

Viewing Page 10 of 270
CMA PDF 1336 Questions

Details: Strategic and tactical Planning 1

Which one-of the following best describes tactical profit plans?

  1. Details, short-term, broad responsibilities qualitative
  2. Broad, short-term responsibilities at all levels, quantitative
  3. Detailed, short-term responsibilities at all levels, quantitative
  4. Broad long-term broad responsibilities qualitative

Answer(s): C

Explanation:

A tactical profit plan, also called a budget, must be detailed enough that middle managers know exactly what cost and revenue targets they are responsible for. Tactical plans necessarily focus on the short term, and they must detail responsibilities at all levels of the organization. Lastly, they must be quantitative so that managers know exactly what their goals are.




Details: Ranking Investment Projects 19

The following data pertain to a 4-year project being considered by Metro Industries: · A depreciable as set 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 discounted cash flow for the fourth year MACPS depreciation on the new asset is

  1. $0
  2. $17,920
  3. $21,504
  4. $26,880

Answer(s): C

Explanation:

Tax law allows taxpayers to ignore salvage value when calculating depreciation under MACPS. Thus1 the depreciation deduction is 7% of the initial $1 .200000 cost, or $84,000. Ata4O% tax rate, the deduction will save the company $33,600 in taxes in the fourth year. The present value of this savings is $21,504 ($33,600 x 0.64 present value of $1 at 12% for four periods).




Details: Ranking Investment Projects 19

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 analwe investments and will employ the following factors and rates.


The discounted, net-of-tax amount that relates to disposal of the existing asset is

  1. $168,000
  2. $169,320
  3. $180,000
  4. $190,680

Answer(s): B

Explanation:

The cash in flow from the existing asset is $180,000, but that amount is subject to tax on the $30,000 gain ($180,000-- $150,000 tax basis). The tax on the gain is $12,000 ($30,000 x 40%). Because the tax will not be paid until year-end1 the discounted value is $10,680 ($12,000 x .89 PV of $1 at 12% for one period). Thus, the net-of-tax inflow is $169,320 ($180,000--$10,680). NOTE: This as set was probably a Section 1231 asset, and any gain on sale qualifies for the special capital gain tax rates. Had the problem not stipulated a 40% tax rate, the capital gains rate would be used. An answer based on that rate is not among the options.




Details: Ranking Investment Projects 19

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

  1. $57,600
  2. $92,160
  3. $273,600
  4. $437,760

Answer(s): 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).




Details: Ranking Investment Projects 19

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.


4. The overall discounted-cash-flow impact of the working capital investment on Metro's project is

  1. $(2,800)
  2. $(18,000)
  3. $(50,000)
  4. $(59,200)

Answer(s): B

Explanation:

The working capital investment is treated as a $50,000 outflow at the beginning of the project and a $50,000 inflow at the end of 4 years. Accordingly, the present value of the inflow after 4 years should be subtracted from the initial $50,000 outlay. The overall discounted-cash4low impact of the working capital investment is $18,000 [$50,000-- ($50,000 x .64 PV of $1 at 12% for four periods)].



Viewing Page 10 of 270



Share your comments for Financial CMA exam with other users:

Siyya 1/19/2024 8:30:00 PM

might help me to prepare for the exam
Anonymous


Ted 6/21/2023 11:11:00 PM

just paid and downlaod the 2 exams using the 50% sale discount. so far i was able to download the pdf and the test engine. all looks good.
GERMANY


Paul K 11/27/2023 2:28:00 AM

i think it should be a,c. option d goes against the principle of building anything custom unless there are no work arounds available
INDIA


ph 6/16/2023 12:41:00 AM

very legible
Anonymous


sephs2001 7/31/2023 10:42:00 PM

is this exam accurate or helpful?
Anonymous


ash 7/11/2023 3:00:00 AM

please upload dump, i have exam in 2 days
INDIA


Sneha 8/17/2023 6:29:00 PM

this is useful
CANADA


sachin 12/27/2023 2:45:00 PM

question 232 answer should be perimeter not netowrk layer. wrong answer selected
Anonymous


tomAws 7/18/2023 5:05:00 AM

nice questions
BRAZIL


Rahul 6/11/2023 2:07:00 AM

hi team, could you please provide this dump ?
INDIA


TeamOraTech 12/5/2023 9:49:00 AM

very helpful to clear the exam and understand the concept.
Anonymous


Curtis 7/12/2023 8:20:00 PM

i think it is great that you are helping people when they need it. thanks.
UNITED STATES


sam 7/17/2023 6:22:00 PM

cannot evaluate yet
Anonymous


nutz 7/20/2023 1:54:00 AM

a laptops wireless antenna is most likely located in the bezel of the lid
UNITED STATES


rajesh soni 1/17/2024 6:53:00 AM

good examplae to learn basic
INDIA


Tanya 10/25/2023 7:07:00 AM

this is useful information
Anonymous


Nasir Mahmood 12/11/2023 7:32:00 AM

looks usefull
Anonymous


Jason 9/30/2023 1:07:00 PM

question 81 should be c.
CANADA


TestPD1 8/10/2023 12:22:00 PM

question 18 : response isnt a ?
EUROPEAN UNION


ally 8/19/2023 5:31:00 PM

plaese add questions
TURKEY


DIA 10/7/2023 5:59:00 AM

is dumps still valid ?
FRANCE


Annie 7/7/2023 8:33:00 AM

thanks for this
EUROPEAN UNION


arnie 9/17/2023 6:38:00 AM

please upload questions
Anonymous


Tanuj Rana 7/22/2023 2:33:00 AM

please upload the question dump for professional machinelearning
Anonymous


Future practitioner 8/10/2023 1:26:00 PM

question 4 answer is c. this site shows the correct answer as b. "adopt a consumption model" is clearly a cost optimization design principle. looks like im done using this site to study!!!
Anonymous


Ace 8/3/2023 10:37:00 AM

number 52 answer is d
UNITED STATES


Nathan 12/17/2023 12:04:00 PM

just started preparing for my exam , and this site is so much help
Anonymous


Corey 12/29/2023 5:06:00 PM

question 35 is incorrect, the correct answer is c, it even states so: explanation: when a vm is infected with ransomware, you should not restore the vm to the infected vm. this is because the ransomware will still be present on the vm, and it will encrypt the files again. you should also not restore the vm to any vm within the companys subscription. this is because the ransomware could spread to other vms in the subscription. the best way to restore a vm that is infected with ransomware is to restore it to a new azure vm. this will ensure that the ransomware is not present on the new vm.
Anonymous


Rajender 10/18/2023 3:54:00 AM

i would like to take psm1 exam.
Anonymous


Blessious Phiri 8/14/2023 9:53:00 AM

cbd and pdb are key to the database
SOUTH AFRICA


Alkaed 10/19/2022 10:41:00 AM

the purchase and download process is very much streamlined. the xengine application is very nice and user-friendly but there is always room for improvement.
NETHERLANDS


Dave Gregen 9/4/2023 3:17:00 PM

please upload p_sapea_2023
SWEDEN


Sarah 6/13/2023 1:42:00 PM

anyone use this? the question dont seem to follow other formats and terminology i have been studying im getting worried
CANADA


Shuv 10/3/2023 8:19:00 AM

good questions
UNITED STATES