CMA Strategic Financial Management Online Practice Questions

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Latest CMA Strategic Financial Management Exam Practice Questions

The practice questions for CMA Strategic Financial Management exam was last updated on 2025-07-12 .

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Question#1

A. Utilitarianism
B. Deontology
C. Teleology
D. Relativism

Question#2

Radal inc. currently has three product lines: stationery computer supplies, and printer cartridges.
Based on the following information, the company is considering whether to drop the printer cartridge line.


A. continue the printer cartridge product line to avoid an additional $3.000 decrease in net income
B. drop the printer cartridge product line as this will result in a $3 000 increase m net income
C. drop the printer cartridge product line as this will result in a $6,000 increase m net income
D. continue the printer cartridge product line to avoid an additional $6.000 decrease in net income

Question#3

A furniture retail company uses the LIFO inventory method Due to the nigh inflation rate in me past year, the company's

A. current ratio may be overstated
B. quick ratio may be understated
C. net income may be understated
D. quick ratio may be overstated

Question#4

CORRECT TEXT
Discuss whether AMI should use a cost-based or a market-based pricing approach. Explain your answer.
Essay
Food Depot Ltd, (FDL) is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants, FDL has been profitable in recent years and has a very strong cash position. FDL's newest division. Food_TO-Go is an online meal ordering and delivery platform acquired by FDL two year ago.
In 20X7, sales for the entire company were $1 billion, with 50% of the business coming from the Airline Catering division. FDL is the country ‘s leading airline catering services provider and control 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
The Food-To-division only contribution 5% of FDL’s total sales in 20X7 and is far behind in competing for marketing for market share of the online meal ordering and delivery industry, it is estimated that Food-To-Go’s sales were only 20% of the industry leader’s sales. However, the outlook for the online meal ordering and delivery services industry is bright.
The compound annual growth rate of the industry since it started three years ago was 50%.
It is estimated the rapid growth of the industry will continue in the foreseeable future.
Susan Willey, the head of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company. Wiley argues that ber division bad the highest ROI in 20X7, and it deserves more capital finding. FDL’s requested rate of return is 12%.
The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follow (in $ millions)


A. It should continue using market based pricing as the bargaining power is with the company not with me customer the products they make are important for me customers and there is a few competition hence it is an opportunity for Item to charge a premium for their products.

Question#5

CORRECT TEXT
Calculate AMI’s degree of operating leverage. Show your calculations.
Essay
Apex Manufacturing lnc. (AMI) is a Canada-based company that manufactures a manufactures and unique part for aircrafts. It has few competitors in the market. The company is exposed to exchange rate risk because about 90% of its products are exported to the U.S, and most of its sales contracts are in U.S. dollars. AMI has the capacity to manufacture 1,500 units of the part per year. For the year just ended. AMI manufactured and sold 1,000 units.
The operating results are shown below.



Recently, A new customer made a one-area order of 500 units of the part at $1.200 per unit. The CTO asked the controller to analyze this offer. AMI is considering adjusting its sales price next year in a recent meeting, the CFO suggested to use the market-based approach for pricing decisions, bat the controller insisted that the cost-based approach is more favorable to the company.

A. $1m/$0.5,
2 times
contribution/operating income
They can simply revalue their assets and hence ask for a higher price for their company or they re structure their financing structure by either issuing fleets or reducing me equity by paying a special one off dividend.

Exam Code: CMA Strategic Financial ManagementQ & A: 123 Q&AsUpdated:  2025-07-12

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