Certified Management Accountant Trivia 2 — Questions and Answers
Question 1: Which organization administers the Certified Management Accountant (CMA) exam in the United States?
- AICPA
- IMA (Correct answer)
- CIMA
- NASBA
Correct answer: IMA
The Institute of Management Accountants (IMA) administers the CMA certification program.
Question 2: The CMA exam is divided into how many parts?
- 1
- 3
- 2 (Correct answer)
- 4
Correct answer: 2
The CMA exam consists of two parts: Part 1 (Financial Planning, Performance, and Analytics) and Part 2 (Strategic Financial Management).
Question 3: What is the primary purpose of a flexible budget in management accounting?
- To set fixed spending limits for departments
- To adjust budgeted amounts based on actual activity levels (Correct answer)
- To eliminate variance analysis
- To replace the master budget
Correct answer: To adjust budgeted amounts based on actual activity levels
A flexible budget adjusts revenue and cost estimates to the actual level of activity, making variance analysis more meaningful.
Question 4: Which costing method assigns overhead costs to products based on the activities that drive those costs?
- Job-order costing
- Process costing
- Activity-based costing (Correct answer)
- Standard costing
Correct answer: Activity-based costing
Activity-based costing (ABC) assigns overhead by identifying cost drivers for each activity rather than using a single plant-wide rate.
Question 5: The balanced scorecard framework was introduced by which two researchers?
- Porter and Mintzberg
- Kaplan and Norton (Correct answer)
- Drucker and Deming
- Jensen and Meckling
Correct answer: Kaplan and Norton
Robert Kaplan and David Norton introduced the balanced scorecard in a 1992 Harvard Business Review article.
Question 6: In cost-volume-profit analysis, the contribution margin ratio equals:
- Net income divided by sales
- Fixed costs divided by sales
- Contribution margin divided by sales (Correct answer)
- Variable costs divided by sales
Correct answer: Contribution margin divided by sales
The contribution margin ratio is calculated as contribution margin divided by sales, showing what percentage of each sales dollar contributes to covering fixed costs and profit.
Question 7: Which internal control framework is most widely referenced by US public companies under Sarbanes-Oxley compliance?
- COSO Framework (Correct answer)
- COBIT Framework
- ISO 31000
- ITIL Framework
Correct answer: COSO Framework
The COSO (Committee of Sponsoring Organizations) Internal Control – Integrated Framework is the standard used for SOX Section 404 compliance.
Certified Management Accountant Trivia 2
Which organization administers the Certified Management Accountant (CMA) exam in the United States?