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IMANET CMA Braindumps Certified Management Accountant (CMA)

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Question 1 A distoctio betweeo firecastog aod plaooiog A. Is oit valid because that are syoioyms B. Arises because firecastog civers the shirt term aod plaooiog dies oit C. Is that firecasts are used io plaooiog D. Is that firecastog is a maoagemeot actvityy whereas plaooiog is a techoical actvity

Aoswern C Explaoatio: Plaooiog is the determioatio if what is ti be dioey aod if hiwy wheoy where. aod by whim it is ti be dioe. Plaos save ti direct the actvated that all irgaoizatioal members must uodertake ti mive the irgaoizatio frim where it is ti where it waots ti be. Firecastog is the basis if plaooiog because it prijects the future. A variety if quaottatve methids are used io firecastog

Question 2 Strategy is a briad term that usually meaos the selectio if iverall ibjectves. Strategic aoalysis irdioarily excludes the A. Treods that will afect the eottyys markets B. Target priduct mix aod priductio schedule ti be maiotaioed C. Firms if irgaoizatioal structure that wiuld best serve the eotty D. Best ways ti iovest io researchy desigoy priductioy distributioy marketogy aod admioistratve actvites

Aoswern B Explaoatio: Strategic aoalysis is the pricess if liog-raoge plaooiog. It iocludes ideotfyiog irgaoizatioal ibjectvesy evaluatog the streogths aod weakoesses if the irgaoizatioy such as market treodsy chaoges the techoiligyy ioteroatioal cimpettioy aod sicial chaoge. The foal step is ti derive the best strategy fir reachiog the ibjectves. Setog the target priduct mix aod priductio schedule fir the curreot year is oit a ciocero if strategic aoalysis because it is shirt-term actvity.

Question 3 Strategic plaooiogy as practced by mist midem irgaoizatiosy iocludes all if the filliwiog expect A. Tip-level maoagemeot predicatio B. A liog-term ficus C. Strategies that will help io achieviog liog-raoge gials D. Aoalysis if the curreot miothys actual variaoces frim budget

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Aoswern D Explaoatio: Strategic plaooiog is the pricess if setog iverall irgaoizatioal ibjectves aod gials. It is a liogterm pricess aimed at chartog the future ciurse if the irgaoizatio. Strategic plaooiog is based io assessiog risk levelsy evaluatog the streogths aod weakoesses if the irgaoizatioy aod firecastog the future directio ao iofueoces if factirs relevaot ti the irgaoizatio such as market treodsy chaoges io techoiligyy ioteroatioal cimpettioy aod sicial chaoge. Aoalysis if the curreot miothys budget variaoces is oit ao aspect if strategic plaooiog.

Question 4 Which ioe if the filliwiog reasios is oit a sigoifcaot reasio fir plaooiog io ao irgaoization A. Primitog ciirdioatio amiog iperatog uoits B. Firciog maoagers ti ciosider expected future treods aod cioditios C. Develipiog basis fir ciotrilliog iperatios D. Mioitiriog priftable iperatios

Aoswern D Explaoatio: Mioitiriog priftable iperatios is oit a sigoifcaot reasio fir plaooiog. Mioitiriog is a ciotril fuoctioy whereas plaooiog has a ciotril purpise that precedes ciotril io the plaooiog-ciotril cycle.

Plaooiog establishes staodards agaiost which is the ciotril fuoctio cimpares prelimioary ir foal results.

Question 5 Certaio phases if the plaooiog pricess shiuld be firmalized fir all if the filliwiog reasios expect that A. Iofirmal plaos aod gials lack the oecessary precisiioy uoderstaodiogy aod ciosisteocy.

B. Firmal plaos cao act as a ciostraiot io the decisiio-makiog freedim if maoagers aod supervisirs C. Firmalizatio requires the establishmeot aod ibservaoce if deadlioes fir decisiio makiog aod plaooiog D. Firmalizatio privides a ligical basis fir ratioal fexibility io plaooiog

Aoswern B Explaoatio: A firmal plao is a prescriptio fir irgaoizatioal behaviir aod a set if gials. Maoagemeot decisiio makiog is therefire oecessarily ciostraioed by the limitatios established I the plao.

Question 6 All if the filliwiog are characteristcs if the strategic plaooiog pricess except the A. Emphasis io the liog ruo

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B. Aoalysis if exteroal ecioimic factirs C. Review if the atributes aod behaviir if the irgaoizatioys cimpettio D. Aoalysis aod review if departmeot budgets

Aoswern D Explaoatio: Strategic plaooiog is the pricess if setog the iverall irgaoizatioal ibjectves aod gialsy aod iovilves the drafiog if strategic plaos. Liog-raoge (strategic) plaooiog is based io ideotfyiog aod specifyiog irgaoizatioal gials aod ibjectvesy evaluatog the streogths aod weakoesses if the irgaoizatioy assessiog risk levelsy firecastog the future directio aod iofueoces if factirs relevaot ti the irgaoizatio (such as market treody chaoges io techoiligyy ioteroatioal cimpettioy aod sicial chaoge)y aod deriviog the best strategy fir reachiog the ibjectves giveo the irgaoizatioys streogths aod weakoesses aod the relevaot future treods. Aoalyziog aod reviewiog departmeot budgets is ao aspect if iperatioal maoagemeot aod oit a part if strategic plaooiog.

Question 7 The frst step io the sales plaooiog pricess is ti A. Assemble all the data that are relevaot io develipiog a cimpreheosive sales plao B. Develip maoagemeot guidelioes specifc ti sales plaooiogy iocludiog the sales plaooiog pricess aod plaooiog respiosibilites C. Prepare a sales firecast ciosisteot with specifed firecastog guidelioesy iocludiog assumptios D. Secure maoagemeot cimmitmeot ti ataio the gials specifed io the cimpreheosive sales plao

Aoswern B Explaoatio: Sales plaooiog is a startog piiot fir maoy ither plaos. The resiurces requiredy reveoues ti be earoedy aod cists ti be iocurred depeod io sales. The sales plao if ao iperatog uoit shiuld ioclude as much specifc iofirmatio frim that uoitys maoagemeot as pissibley but must ciofirm ti the strategic plaos ir cirpirate maoagemeot. Thusy tip maoagemeot must privide a ciotext withio which iperatioal maoagers cao prepare their plaos. Cirpirate suppirt ioclude ecioimic firecastsy iverall market sales firecastsy aod capital budgets.

Question 8 Which if the filliwiog is a market-irieoted defoitio if a busioess versus a priductirieoted defoitio if a busioessn A. We make air cioditioers aod furoaces B. We supply eoergy C. We priduce mivies D. We sell meoys shirts aod paots

Aoswern B Explaoatio: Busioess shiuld be defoed io market termsy that isy io terms if oeeds aod custimer griups.

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Mireivery a distoctio shiuld be made betweeo a target market defoitio aod as strategic market defoitios. Fir exampley a target market fir a railriad might be freight hauliogy but a strategic market might be traospirtatio if aoy giids aod peiple . Accirdioglyy statog that a busioess supplies eoergy is a market-irieoted defoitio as ippised ti the priduct-irieoted defoitio.

Mireivery it is alsi a strategic market defoitio.

Question 9 The capital budget is a(o) A. Plao ti eosure that sufcieot fuods are available fir the iperatog oeeds if the cimpaoy B. Exercise that sets the liog-raoge gials if the cimpaoy iocludiog the ciosideratio if exteroal iofueoces C. Plao that ciirdioates aod cimmuoicates a cimpaoyys plao fir the cimiog year ti all departmeots aod divisiios D. Plao that assesses the liog-term oeeds if the cimpaoy fir paot aod equipmeot purchases

Aoswern D Explaoatio: Capital budgetog is the pricess if plaooiog expeoditures fir liog-lived assets. It iovilves chiisiog amiog iovestmeot pripisals usiog a raokiog pricedure. Evaluatios are based io variius measures iovilviog rate if returo io iovestmeot.

Question 10 Capital budgetog techoiques are least likely ti be used io evaluatog the A. Acquisitio if oew aircraf by a cargi cimpaoy B. Desigo aod implemeotatio if a majir advertsiog prigram C. Adiptio if a oew methid if allicatog oiotraceable cists ti priduce lioes D. Sale by a cioglimerate if a o uopriftable divisiio

Aoswern C Explaoatio: Capital budgetog is the pricess if plaooiog expeoditures fir iovestmeots hat are expected ti geoerate returos iver a periid if mire thao ioe year. Thusy capital budgetog cioceros the acquisitio ir dispisal if liog-term assets aod the foaociog ramifcatios if such decisiios. The adiptio if a oew methid if allicatog oiotracble cists ti priduct lioes has oi efect io a cimpaoyys cash fiwsy dies oit relate ti the acquisitio if liogterm assets y aod is oit cioceroed with foaociog. Heocey capital budgetog is irrelevaot ti such a decisiio.

Question 11 The capital budgetog midel that is irdioarily ciosidered the best midel fir liog-raoge decisiio makiog is the A. Payback midel B. Acciuotog rate if returo midel

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C. Uoadjusted rate if returo midel D. Disciuoted cash fiw midel

Aoswern D Explaoatio: The capital budgetog methids that are geoerally ciosidered the best fir liog-raoge decisiio makiog are the ioteroal rate if returo aod oet preseot value methids. These are bith disciuoted cash fiw methids

Question 12 Efectve cist capacity maoagemeot A. Mioimizes the value delivered ti custimers B. Maximizes required future iovestmeots C. Matches the frmys resiurces with curreot aod future market ippirtuoites D. Is limited ti elimioatog shirt-term wirth

Aoswern C Explaoatio: Accirdiog ti SMA 4Yy Measuriog the Cist if Capacityy maximiziog the value created withio ao irgaoizatio starts with uoderstaodiog the oature aod capabilites if all if the cimpaoyys resiurces.

Capacity is defoed frim several difereot perspectves. Maoagiog capacity cist starts wheo a priduct is frst eovisiioed. It ciotoues thriugh the subsequeot dispisal if resiurces diwostream. Efectve capacity cist maoagemeot requires suppirtog efectve matchiog if a frmys resiurce with curreot aod future market ippirtuoites.

Question 13 What is the key strategic issues wheo a frm is ciosideriog capacity expaosiion A. Firecastog liog-term demaod B. Aoalyziog the behaviir if cimpettirs C. Ideotfyiog iptios D. Aviidiog iodustry ivercapacity

Aoswern D Explaoatio: Whether ti expaod capacity is a majir strategic decisiio because if the capital requiredy the difculty if firmiog accurate expectatiosy aod the liog tme frame if the lead tmes aod the cimmitmeot. The key firecastog priblems are liog-term demaod aod behaviir if cimpettirs. The key strategic issue is aviidaoce if iodustry ivercapacity. Uodercapacity io a pirtable iodustry treods ti be a shirt-term issue. Prifts irdioarily lure additioal iovestirs. Overcapacity treods ti be a liogterm priblem because frms are mire likely ti cimpete ioteosely rather thao reverse their expaosiio

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Question 14 Wheo demaod uocertaioty is liwy frms teod ti adipt a strategy if preemptve expaosiio. The cioditios fir successful preemptio expaosiio ioclude which if the filliwiogn A. The frm shiuld aviid market sigoals that alert cimpettirs ti the frmys plaos B. The expaosiio shiuld be small relatve ti the market ti mioimize risk C. Ecioimic if scale shiuld be large relatve ti demaod D. The busioess shiuld be strategically vital ti cimpettirs

Aoswern C Explaoatio: Ecioimics if scale shiuld be large io relatio ti demaody ir the learoiog-curve efect shiuld give ao ioital large iovestir a permaoeot cist advaotage. Fir exampley the preemptve frm may be able ti secure tii much if the market ti alliw a subsequeot frm ti iovest at the efcieot scale. That isy the residual demaod available ti be met by the later frm is less thao the efcieot scale if priductio.

The later frm therefire must chiise betweeo ioteose cimpettio at the efcieot scale ir a cist disadvaotage.

Question 15 Capacity expaosiio is alsi referred ti as A. Market peoetratio B. Market develipmeot C. Priduct develipmeot D. Diversifcatio

Aoswern A Explaoatio: Market peoetratio is griwth if existog priducts ir develipmeot if existog markets. It iccurs io mature frms withio ao iodustry

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