Try Free CMA Part 2: Strategic Financial Management Exam Questions

Try Free CMA Part 2: Strategic Financial Management Exam Questions

CMA Part 2: Strategic Financial Management Exam Questions are provided online to help you assess your preparation level.  Part two of the CMA Exam Part 2 is called Strategic Financial Decision Making. This part has six sections under it and each of these sections have a certain weightage that is applied in the overall score of the exam. You can practice the free CMA Part 2: Strategic Financial Management Exam Questions below.

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1. Safety Strollers was recently sued by several people who alleged harmful and unsafe strollers. The management team was largely unconcerned about these lawsuits due to the apparent negligence of the plaintiffs However, a consumer grassroots effort Drought these dangers into the public eye and the management team now fears for their brand s reputation and the sales o' their products. The facts are staring to get distorted and some stores are electing to no longer carry this brand. This situation could best be considered a

2. Which one of the following moral philosophies states that the morality of an action is inherent and not based on the consequences of the action?

3. Sigma industries is considering purchasing Lambda Products in a cash transaction Sigma financial analysts Dave conducted an extensive amount of negotiation and due diligence and nave summarized the following financial information for management.

• Assets having a 10-year remaining life can be acquired for $22 million

• Assets are to De depreciated over their remaining life on a straight-line basis for Doth book and tax purposes

• Current liabilities of Lambda amounting to S3 million must be assumed by Sigma

• Lambda operations are expected to produce annual pre-tax cash Don of S7 million for the remaining 10 years of operation

• A16% return on investment is required by Sigma for acquisitions of this type

• Sigma's marginal Income tax rate is 35%

What is the net present value to Sigma of the Lambda acquisition rounded to the nearest thousand?

4. A company has incurred $2,500 to produce its four products. These products can either be sold as is or processed further.

The selling prices and additional costs necessary to finish these products ace shown below

5. A group of nations is considering me formation of a cartel associated with the manufacture and distribution of a product that they each export .

Which one of the following outcomes would not be consistent with me formation of a carter?

6. If a CMA is asked to conduct a financial assessment of a company owned by a close relative, what would be the proper response under the credibility standard of the IMA Statement of Ethical Professional Practice?

7. A company produces 10,000 units of Product A monthly at the costs shown below.

The company estimates that 30% of the fixed overhead costs allocated to Product A are avoidable if the company chooses to outsource the production.

If the company purchases Product A from an outside supplier for $18 per unit what would be the net effect on its operating income?

8. The best discount rate to the use for evaluate of investment opportunities is the

9. 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?

10. Management is responsible for identifying potential events mat could represent opportunities or threats .

Which one of the following is not a viable event identification technique?


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