高才财经培训-CMA Part3练习及答案(修订).pdf

CMA Exam Practice Questions Page 1 2008 Institute of Certified Management Accountants CMA PROGRAM Revised CMA Exam Questions replacing the head of the marketing department will increase profitability only and investing in information technology will improve customer satisfaction but will not solve communication problems 2 Identified three possible ways to solve the problem extensive personnel training in the involved departments replacing the head of the marketing department or investing in IT 3 Agreed upon key performance indicators such as customer satisfaction customer retention and product and customer profitability to assess the effectiveness of the proposed solution 4 Decided to conduct extensive training for marketing department personnel and limited communication training for production and finance departments What is the correct sequence of these logical decision making steps a 1 2 3 4 b 2 1 3 4 c 3 1 2 4 d 2 3 1 4 CMA Exam Practice Questions Page 16 2008 Institute of Certified Management Accountants 42 Topic D 3 a Specialty Cakes Inc produces two types of cakes a round cake and a heart shaped cake Total fixed costs for the firm are 92 000 Variable costs and sales data for these cakes are presented below Round Cake Heart shape Cake Selling price per unit 12 20 Variable cost per unit 8 15 Budgeted sales units 10 000 15 000 How many cakes will be required to reach the breakeven point a 8 000 round cakes and 12 000 heart shaped cakes b 9 000 round cakes and 11 000 heart shaped cakes c 10 000 round cakes and 10 000 heart shaped cakes d 23 000 round cakes and 18 400 heart shaped cakes 43 Topic D 4 a McCann Company can manufacture one of two special orders with their existing capacity Special Order A is for 100 000 units and Special Order B is for 200 000 units Cost and revenue data per unit are as follows Per Unit Special order A B Sales price 7000 4500 Direct materials 4550 2775 Direct labor Variable 1100 0993 Fixed 0300 0089 Manufacturing overhead Variable 0430 0330 Fixed 0370 0523 Variable marketing costs already incurred to obtain the order 0900 0912 Fixed marketing and administrative costs 0950 0878 Based on the above information which one of the following statements correctly identifies the effect on pretax profit if the optimal decision is made a 200 increase if Special Order A is taken b 9 200 increase if Special Order A is taken c 13 430 increase if Special Order A is taken d 8 040 increase if Special Order B is taken CMA Exam Practice Questions Page 17 2008 Institute of Certified Management Accountants 44 Topic D 5 a Finn Products a start up company wants to use cost based pricing for its only product a unique new video game Finn expects to sell 10 000 units in the upcoming year Variable costs will be 65 per unit and annual fixed operating costs including depreciation amount to 80 000 Finn s balance sheet is as follows Assets Liabilities 2 Speculative motive to take advantage of sudden opportunities 3 Precautionary motive to maintain a safety cushion Fundamentals of Financial Management Van Horne and Wachowicz 12th ed pp 218 219 Learning Outcome Statement identify factors influencing the levels of cash demonstrate an understanding of the three motives for holding cash 29 Key B Average collection period Average receivables sales 365 30 million 1 369 863 21 9 Principles of Corporate Finance Brealey and Myers 7th ed p 827 Learning Outcome Statement calculate the average collection period Number 17 CMA Exam Practice Questions Page 30 2008 Institute of Certified Management Accountants 30 Key D JIT delivers materials to the factory floor when they are needed decreasing inventories and thus reducing carrying costs Fundamentals of Financial Management Van Horne and Wachowicz 12th ed pp 259 260 Learning Outcome Statement define Just in Time and Kanban inventory management systems 31 Key B Commercial paper is usually issued with maturities between 60 to 270 days Principles of Corporate Finance Brealey and Myers 7th ed pp 870 871 Learning Outcome Statement describe the different types of short term credit including accrued wages and taxes trade credit short term bank loans commercial paper lines of credit and bankers acceptances 32 Key C Annual cost of the financing arrangement Interest rate x Borrowed amount Credit line limit Borrowed amount x Commitment fee 6 x 100 000 300 000 100 000 x 7 000 Principles of Corporate Finance Brealey and Myers 7th ed pp 866 867 Learning Outcome Statement calculate the effective annual interest rate of a bank loan with a compensating balance requirement and or a commitment fee 33 Key D Nominal annual cost discount 100 discount x 360 payment date discount period 1 99 x 360 15 24 2 Fundamentals of Financial Management Van Horne and Wachowicz 12th ed p 280 Learning Outcome Statement estimate the annual cost of not taking a cash discount 34 Key D Break even point Fixed Costs Contribution Margin 260 000 500 100 650 units Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 65 66 Learning Outcome Statement demonstrate an understanding of how cost volume profit CVP analysis break even analysis is used to examine the behavior of total revenues total costs and operating income as changes occur in output levels selling prices variable costs per unit or fixed costs calculate the breakeven point in units and dollar sales to achieve targeted operating income or targeted net income CMA Exam Practice Questions Page 31 2008 Institute of Certified Management Accountants 35 Key B The required EBIT 32 250 000 80 000 The required number of units Fixed costs EBIT Contribution margin 122 500 80 000 15 42 32 143 Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 65 66 78 Learning Outcome Statement demonstrate an understanding of the importance of contribution margin per unit in CVP analysis calculate contribution margin per unit and total contribution margin calculate the breakeven point in units and dollar sales to achieve targeted operating income or targeted net income 36 Key C If Segment B is closed Operation income will be subject to the following adjustments Sales 15 000 Variable costs of goods sold 8 500 Fixed costs of goods sold 1 500 Variable selling and administrative expenses 3 000 Total effect 2 000 Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 370 389 Learning Outcome Statement demonstrate proficiency in the use of marginal analysis for decisions such as a introduction a new product or a change in output levels of existing products b acceptance or rejection of special orders c making or buying a product or service and d adding or dropping a segment differentiate between avoidable and unavoidable costs in the decision to drop or add a segment 37 Key B If Pazer adds voice activated controls the actual and perceived value of portable televisions for consumers would increase In contrast the company s decision to add additional repair personnel will not impact customer value or usefulness received from the product Cost Accounting A Managerial Emphasis Horngren Datar and Foster 11th ed p 417 Learning Outcome Statement define and distinguish between a value added cost and a nonvalue added cost 38 Key D Value engineering is a systematic evaluation of the value chain business function aspects aiming at reducing costs while satisfying customer needs Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed p 417 Learning Outcome Statement define value engineering CMA Exam Practice Questions Page 32 2008 Institute of Certified Management Accountants 39 Key D The decision making process includes the following logical steps a obtain information b identify alternative courses of action c make predictions about future costs d choose and justify an alternative e implement a decision and f evaluate performance to provide feedback Thus defining the problem logical step should be completed prior to selecting the investment alternatives Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed p 370 Learning Outcome Statement identify and demonstrate an understanding of the steps needed to reach a decision i e a obtain information b identify alternative courses of action c make predictions about future costs d choose and justify an alternative e implement a decision and f evaluate performance to provide feedback 40 Key D A differential cost is by definition a cost that differs for each decision alternative Thus a decision maker considers only differential costs in the decision making process the costs that do not change among alternative courses of action are considered irrelevant for the decision Cost Management A Strategic Emphasis Blocher and Chen 2nd ed p 82 Learning Outcome Statement recognize the importance of focusing on relevant revenues expected future revenues and relevant costs expected future costs and that to be relevant the revenues and costs must differ among alternative courses of action recognize that relevant costs are also referred to as incremental or differential costs 41 Key D The decision making process includes the following logical steps a obtain information b identify alternative courses of action c make predictions about future costs d choose and justify an alternative e implement a decision and f evaluate performance to provide feedback Quantitative Methods for Business Anderson Sweeney and Williams 8th ed pp 2 3 Learning Outcome Statement identify and demonstrate an understanding of the steps needed to reach a decision i e a obtain information b identify alternative courses of action c make predictions about future costs d choose and justify an alternative e implement a decision and f evaluate performance to provide feedback CMA Exam Practice Questions Page 33 2008 Institute of Certified Management Accountants 42 Key A The break even point can be calculated by dividing fixed costs by contribution margin Since there are two products we calculate the weighted contribution margin by weighting the products individual contribution margins by budgeted sales Weighted contribution margin 10 000 25 000 x 4 15 000 25 000 x 5 4 6 per bundle Break even bundles 92 000 4 6 20 000 bundles Round cakes 10 000 25 000 x 20 000 8 000 round cakes Heart shaped cakes 15 000 25 000 x 20 000 12 000 heart shaped cakes Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 309 310 Learning Outcome Statement calculate the breakeven point in units and dollar sales to achieve targeted operating income or targeted net income 43 Key B Special order A B Direct materials 4550 2775 Labor variable 1100 0993 Manufacturing OH variable 0430 0330 Total differential costs 6080 4098 Sales Price 7000 4500 Contribution margin unit 0920 0402 x Units 100 000 200 000 Profit increase 9 200 8 040 Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 373 374 Learning Outcome Statement demonstrate proficiency in the use of marginal analysis for decisions such as a introduction a new product or a change in output levels of existing products b acceptance or rejection of special orders c making or buying a product or service and d adding or dropping a segment calculate the effect on operating income of a decision to accept or reject a special order when there is idle capacity and the order has no long run implications 44 Key C Return on equity ROE Net Income Equity Net income Equity x ROE 300 000 x 20 60 000 Net Income Price Variable costs x Number of units Fixed costs Price Net Income Fixed costs Variable costs Number of units 60 000 80 000 65 x 10 000 790 000 10 000 79 00 Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 421 424 Learning Outcome Statement define the pricing technique of cost plus target rate of return calculate the target operating income per unit and target cost per unit CMA Exam Practice Questions Page 34 2008 Institute of Certified Management Accountants 45 Key D Year 4 terminal cash flows Revenues 150 000 Operating expenses 100 000 Operating income 50 000 Depreciation 15 000 Income before taxes 35 000 Taxes 40 14 000 Net income 21 000 Add back depreciation 15 000 Cash flow years 1 2 3 36 000 Add salvage value year 4 10 000 Add net working capital recovery yr 4 3 000 Cash flow year 4 49 000 Principles of Corporate Finance Brealey and Myers 7th ed pp 118 139 Learning Outcome Statement identify the steps or stages undertaken in developing and implementing a capital budget for a project identify and calculate the relevant cash flows of a capital investment project on both a pretax and after tax basis 46 Key B Year 1 cash flows Revenues 450 000 Operating expenses 300 000 Operating income 150 000 Depreciation 40 000 Income before taxes 110 000 Taxes 40 44 000 Net income 66 000 Add back depreciation 40 000 Cash flow 106 000 Principles of Corporate Finance Brealey and Myers 7th ed pp 118 139 Learning Outcome Statement identify the steps or stages undertaken in developing and implementing a capital budget for a project identify and calculate the relevant cash flows of a capital investment project on both a pretax and after tax basis CMA Exam Practice Questions Page 35 2008 Institute of Certified Management Accountants 47 Key D Initial investment will include the purchase price installation cost and increase in working capital Thus initial investment 380 000 20 000 15 000 415 000 Principles of Corporate Finance Brealey and Myers 7th ed pp 118 139 Learning Outcome Statement identify the steps or stages undertaken in developing and implementing a capital budget for a project identify and calculate the relevant cash flows of a capital investment project on both a pretax and after tax basis 48 Key B Cost and installation cash outflow 50 000 4 000 54 000 Sale of old machine cash inflow 5 000 Tax effect of sale of old machine cash outflow 5 000 2 000 x 0 40 1 200 Increase in net working capital cash outflow 1 000 Total cash outlay Inflows Outflows 5 000 54 000 1 200 1 000 51 200 Principles of Corporate Finance Brealey and Myers 7th ed pp 131 136 Learning Outcome Statement identify the steps or stages undertaken in developing and implementing a capital budget for a project identify and calculate the relevant cash flows of a capital investment project on both a pretax and after tax basis 49 Key A By definition IRR is the rate of return where the initial investment the present value of cash outflows equals the present value of cash inflows over the useful life of an asset Initial investment 1 000 x 0 877 2 000 x 0 769 4 000 x 0 675 4 000 x 0 592 7 483 Principles of Corporate Finance Brealey and Myers 7th ed pp 96 109 Learning Outcome Statement demonstrate an understanding of the two main DCF methods net present value NPV and internal rate of return IRR CMA Exam Practice Questions Page 36 2008 Institute of Certified Management Accountants 50 Key A Annual net cash inflows Sales cost of goods sold out of pocket costs 400 000 250 000 70 000 80 000 annually Item Years Cash flows Factor Present Value Purchase of equipment 0 120 000 1 000 120 000 Working capital required 0 200 000 1 000 200 000 Annual net cash inflow 1 5 80 000 2 991 239 280 Salvage value of equipment 5 20 000 0 402 8 040 Release working capital 5 200 000 0 402 80 400 Net present value 7 720 Cost Accounting a Managerial Emphasis Horngren Foster and Datar 11th ed pp 734 741 Learning Outcome Statement demonstrate an understanding of the two main DCF methods net present value NPV and internal rate of return IRR demonstrate an understanding of the weighted average cost of capital approach to NPV calculations calculate the NPV and IRR using time value of money tables 51 Key A Year Project X Project Y Factor Present Value of Y 1 40 000 10 000 0 909 9 090 2 40 000 20 000 0 826 16 520 3 40 000 60 000 0 751 45 060 4 40 000 80 000 0 683 54 640 Total 160 000 170 000 125 310 Present Value of project X 40 000 x 3 170 annuity discount factor 126 800 Present value PV of cash inflows of project X is greater than PV of project Y and since the two projects are mutually exclusive select project X Principles of Corporate Finance Brealey and Myers 7th ed pp 91 109 Learning Outcome Statement recommend project investments on the basis of DCF analysis CMA Exam Practice Questions Page 37 2008 Institute of Certified Management Accountants 52 Key B Projects I and II do not provide an internal rate of return IRR sufficient to meet the minimum cost of capital requirement of 13 Since the IRR of projects III and IV exceeds the minimum capital requirement we accept only these projects Principles of Corporate Finance Brealey and Myers 7th ed pp 14 17 Learning Outcome Statement recommend project investments on the basis of DCF analysis demonstrate an understanding of the decision criteria used in NPV and IRR analysis to determine acceptable projects 53 Key A To select a project in a budget ceiling it is necessary to arrange the projects in the order of decreasing profitability index PI and select projects with the highest profitability index within the budget constraint PI NPV Investment cost PI project I 0 08 PI project II 0 13 PI project III 0 15 PI project IV 0 09 Thus we select projects III II and I project IV will not meet the budget constraint Principles of Corporate Finance Brealey and Myers 7th ed pp 105 107 Learning Outcome Statement rank capital investment projects and recommend optimal investments using the profitability index determine when the profitability index would be recommended over the NPV rule i e independent projects with capital rationing 54 Key A Net present value of Project A NPV Year 4 cash flow x present value of 1 factor initial investment 157 352 x 0 735 100 000 15 654 Net present value of Project B NPV Annual cash flow x present value of annuity factor initial investment 34 320 x 3 312 100 000 13 668 NPV of Project A is greater than NPV of Project B therefore we select Project A Principles of Corporate Finance Brealey and Myers 7th ed pp 91 104