by alex
Prepare to challenge your understanding and sharpen your skills with our CMA Practice Quiz. This quiz is tailored to help you master the essential concepts and principles of management accounting, ensuring you’re well-equipped for the CMA exam. Let’s get started and see how well you can perform!
CMA Practice Quiz Questions Overview
1. What is the primary objective of management accounting?
To prepare financial statements for external users
To provide information for internal decision making
To ensure compliance with tax regulations
To conduct audits of financial records
2. Which costing method assigns overhead costs to products based on the activities they require?
Job-order costing
Process costing
Activity-based costing
Standard costing
3. In a flexible budget, which costs vary with the level of activity?
Fixed costs
Variable costs
Sunk costs
Opportunity costs
4. What is the formula for calculating the break-even point in units?
Fixed Costs / (Selling Price per Unit – Variable Cost per Unit)
Variable Costs / (Selling Price per Unit – Fixed Cost per Unit)
Fixed Costs / (Variable Cost per Unit – Selling Price per Unit)
Selling Price per Unit / (Fixed Costs – Variable Cost per Unit)
5. Which financial statement provides information about a company’s cash inflows and outflows?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
6. What is the primary purpose of variance analysis in management accounting?
To prepare financial statements
To compare actual performance with budgeted performance
To allocate costs to products
To determine tax liabilities
7. Which of the following is a non-financial performance measure?
Net income
Return on investment
Customer satisfaction
Earnings per share
8. What is the main focus of lean manufacturing?
Maximizing inventory levels
Reducing waste and improving efficiency
Increasing production volume
Enhancing product features
9. Which ratio measures a company’s ability to meet its short-term obligations?
Current ratio
Debt-to-equity ratio
Gross profit margin
Return on assets
10. What is the purpose of a balanced scorecard in performance management?
To track financial performance only
To provide a comprehensive view of organizational performance
To allocate resources to different departments
To determine employee compensation
