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

Financial CMA Exam (page: 31)
Financial Certified Management Accountant
Updated on: 25-Dec-2025

Viewing Page 31 of 270
CMA PDF 1336 Questions

Details: Marginal Analysis 15

The ABC Company manufactures components for use in producing one of its finished products. When 12,000 units are produced, the full cost per unit is $35, separated as follows:
Direct materials $ 5
Direct labor 15
Variable overhead 10
Fixed overhead 5
The XYZ Company has offered to sell 12,000 components to ABC for $37 each. If ABC accepts the offer, some of the facilities currently being used to manufacture the components can be rented as warehouse space for $40,000. However, $3 of the fixed overhead currently applied to each component would have to be covered by ABC's other products. What is the differential cost to the ABC Company of purchasing the components from the XYZ Company?

  1. $8000
  2. $20,000
  3. $24,000
  4. $44,000

Answer(s): B

Explanation:

Differential (incremental) cost is the difference in total cost between two decisions. The relevant costs do not include unavoidable costs, such as the $3 of fixed overhead. It would cost ABC an additional $20,000 to purchase, rather than manufacture, the components.




Details: Marginal Analysis 15

A company needs special gears. The machinery to make the gears can be rented for $100000 for 1 year, but the company can buy the gears and avoid the rental cost. Because the demand for the gears may be high (0.6 probability) or low (0.4 probability) and contribution margins vary, the company prepared the following decision tree:


Which of the following statements is true?

  1. The expected value of making is $20,000.
  2. The expected value of buying is $70000.
  3. Making the gears is the best choice.
  4. Buying the gears is the best choice.

Answer(s): B

Explanation:

The expected value of buying the gears is




Details: Marginal Analysis 15

Production of a special order will increase gross profit when the additional revenue from the special order is greater than

  1. The direct materials and labor costs in producing the order.
  2. The fixed costs incurred in producing the order.
  3. The indirect costs of producing the order.
  4. The marginal cost of producing the order.

Answer(s): D

Explanation:

Gross profit will increase if the incremental or marginal cost of producing the order is less than the marginal revenue. Marginal cost equals the relevant variable costs assuming fixed costs are not affected by the special order.




Details: Marginal Analysis 15

When considering a special order that will enable a company to make use of currently idle capacity. which of the following costs is irrelevant?

  1. Materials.
  2. Depreciation.
  3. Direct labor.
  4. Variable overhead.

Answer(s): B

Explanation:

Because depreciation will be expensed whether or not the company accepts the special order, it is irrelevant to the decision. Only the variable costs are relevant.




Details: Marginal Analysis 15

Which of the following cost allocation methods is used to determine the lowest price that can be quoted for a special order that will use idle capacity within a production area?

  1. Job order.
  2. Process.
  3. Variable.
  4. Standard.

Answer(s): C

Explanation:

If idle capacity exists, the lowest feasible price for a special order is one covering the variable cost. Variable costing considers fixed cost to be a period cost, not a product cost. Fixed costs are not relevant to short term inventory costing with idle capacity because the fixed costs will be incurred whether or not any production occurs. Any additional revenue in excess of the variable costs will decrease losses or increase profits.



Viewing Page 31 of 270



Share your comments for Financial CMA exam with other users:

Anonymous User 2/2/2024 6:42:12 PM

Upload this exam please!
Anonymous


Nicholas 2/2/2024 6:17:08 PM

Thank you for providing these questions. It helped me a lot with passing my exam.
Anonymous


Timi 8/19/2023 5:30:00 PM

my first attempt
UNITED KINGDOM


Blessious Phiri 8/13/2023 10:32:00 AM

very explainable
Anonymous


m7md ibrahim 5/26/2023 6:21:00 PM

i think answer of q 462 is variance analysis
Anonymous


Tehu 5/25/2023 12:25:00 PM

hi i need see questions
Anonymous


Ashfaq Nasir 1/17/2024 1:19:00 AM

best study material for exam
Anonymous


Roberto 11/27/2023 12:33:00 AM

very interesting repository
ITALY


Nale 9/18/2023 1:51:00 PM

american history 1
Anonymous


Tanvi 9/27/2023 4:02:00 AM

good level of questions
Anonymous


Boopathy 8/17/2023 1:03:00 AM

i need this dump kindly upload it
Anonymous


s_123 8/12/2023 4:28:00 PM

do we need c# coding to be az204 certified
Anonymous


Blessious Phiri 8/15/2023 3:38:00 PM

excellent topics covered
Anonymous


Manasa 12/5/2023 3:15:00 AM

are these really financial cloud questions and answers, seems these are basic admin question and answers
Anonymous


Not Robot 5/14/2023 5:33:00 PM

are these comments real
Anonymous


kriah 9/4/2023 10:44:00 PM

please upload the latest dumps
UNITED STATES


ed 12/17/2023 1:41:00 PM

a company runs its workloads on premises. the company wants to forecast the cost of running a large application on aws. which aws service or tool can the company use to obtain this information? pricing calculator ... the aws pricing calculator is primarily used for estimating future costs
UNITED STATES


Muru 12/29/2023 10:23:00 AM

looks interesting
Anonymous


Tech Lady 10/17/2023 12:36:00 PM

thanks! that’s amazing
Anonymous


Mike 8/20/2023 5:12:00 PM

the exam dumps are helping me get a solid foundation on the practical techniques and practices needed to be successful in the auditing world.
UNITED STATES


Nobody 9/18/2023 6:35:00 PM

q 14 should be dmz sever1 and notepad.exe why does note pad have a 443 connection
Anonymous


Muhammad Rawish Siddiqui 12/4/2023 12:17:00 PM

question # 108, correct answers are business growth and risk reduction.
SAUDI ARABIA


Emmah 7/29/2023 9:59:00 AM

are these valid chfi questions
KENYA


Mort 10/19/2023 7:09:00 PM

question: 162 should be dlp (b)
EUROPEAN UNION


Eknath 10/4/2023 1:21:00 AM

good exam questions
INDIA


Nizam 6/16/2023 7:29:00 AM

I have to say this is really close to real exam. Passed my exam with this.
EUROPEAN UNION


poran 11/20/2023 4:43:00 AM

good analytics question
Anonymous


Antony 11/23/2023 11:36:00 AM

this looks accurate
INDIA


Ethan 8/23/2023 12:52:00 AM

question 46, the answer should be data "virtualization" (not visualization).
Anonymous


nSiva 9/22/2023 5:58:00 AM

its useful.
UNITED STATES


Ranveer 7/26/2023 7:26:00 PM

Pass this exam 3 days ago. The PDF version and the Xengine App is quite useful.
SOUTH AFRICA


Sanjay 8/15/2023 10:22:00 AM

informative for me.
UNITED STATES


Tom 12/12/2023 8:53:00 PM

question 134s answer shoule be "dlp"
JAPAN


Alex 11/7/2023 11:02:00 AM

in 72 the answer must be [sys_user_has_role] table.
Anonymous