IMA CMA Strategic Financial Management Practice Exams
Last updated on Oct 22,2026- Exam Code: CMA Strategic Financial Management
- Exam Name: CMA Part 2: Strategic Financial Management Exam
- Certification Provider: IMA
- Latest update: Oct 22,2026
Custom Ceramics produces two hand-painted items a large bowl and a large platter.
Relevant information for each of these items is shown below
- A . The company should produce only bowls because the contribution margin per bowl is higher.
- B . The company should produce only platters because the variable cost per platter is lower
- C . The company should produce only bowls because the sales price per Bowl is higher
- D . The company should produce only platters because the contribution margin per painting
hour is higher
Willcox Company plans to sell 100 000 units of Us only product for $300 per unit to its existing customers It has received a new customer request for 10,000 units at a selling price of $2S0 per unit Willcox’s cost structure is shown below.
Capacity exists lo produce an additional 10 000 units and accepting the order would have no long-term implications If the order is accepted however a specialized piece of equipment costing S25 000 would need to I purchased If Wilcox accepts the special order its income would increase by
- A . $1400, 000.00
- B . $1,375,000.00
- C . $375,000.00
- D . $75,000.00
Harris Wholesale Grocery Company has gross sales per year of $7 million and grants credit terms to its customers of 2/5. net 15 As a result. 60% of customers pay on the discount date 20% pay on the net due date, and 20% pay on average 10 days after the due date Assuming that sales are uniform throughout the year and using a 360-day year In the calculation what is the approximate annual amount of discount that Hams customers are allowed to take?
- A . $28,000
- B . $84,000
- C . $140, 000
- D . $210,000
The production process of a company s main product yields a by-product Production costs or $700,000 are incurred during this process and $300,000 m additional costs are incurred to finalize the main product. The by-product can be sold for $200 000 without further processing A manager proposed the conversion of the by-product into another product that would cost $100,000 and generate revenue of $250,000.
When deciding on this proposal the company should
- A . select an approbate cost allocation method to allocate the $1 100 000 joint costs
- B . evaluate whether other nonfinancial factors outweigh the Si 50.000 in incremental income
- C . treat the $100,000 conversion cost as the marginal cost 1o produce the new product
- D . ignore the $200 000 sales revenue for the by-product because it Is irrelevant
Sunnyvale Gas Company had a $50 million issue of 30-year mortgage bonds issued at par 10 years ago. The coupon rate on the bonds is 15% and Interest is payable semi-annually on March 1 and September 1. The bonds are currently trading at SI 300. The can provision of the issue states that the bonds are callable after the S-year deferral period at 108 plus accrued interest. If Sunnyvale calls the bonds effective June 1 what is the cash payment, ignoring taxes, to the bondholders?
- A . $51875 000
- B . $55 875 000
- C . $57 750 000
- D . $66,875,000
Southwest Supplies Inc. (SSI) is considering the following two projects with cash-flows discounted at SSI’s weighted average cost of capital.
SSI can only afford to invest in one of the projects.
Which statement would most likely explain why SSI would choose Project B over project A?
- A . Project B results in a higher cumulative accounting income
- B . Project B generates significantly more non-cash expenses
- C . Project B cash-flows are relatively more certain
- D . Project B cash-flows are to be received sooner