B 2785 c 4945 d 5955 71 an auditing firm is

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b. $2,785. c. $4,945. d. $5,955. 71. An auditing firm is concluding its audit of a publicly-traded company in the U.S. After obtaining sufficient audit evidence, an external auditor concludes that misstatements in the aggregate are material but not pervasive to the financial statements. What type of opinion should the external auditor issue on the company’s financial statements? a. Unmodified opinion. b. Qualified opinion. c. Adverse opinion. d. Disclaimer of opinion. 72. An example of an item that would fall under the customer perspective on the balanced scorecard of an airline is a. customer complaints will decrease by 10%. b. customers will have to wait no longer than 15 minutes to check their bags. c. 90% of the flights will arrive on time. d. three new in-flight meals will replace existing offerings that are unpopular with customers.
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454 73. All of the following are issues that should be considered in evaluating performance when common costs are allocated to business segments except that a. cost allocations are not included in the calculation of long-term cost per unit. b. common costs are not controllable by segment managers. c. the allocation can be affected by the cost drivers used by other segments. d. there may be no cause-and-effect relationship between an allocated cost and the segment’s operations. 74. A pizza restaurant has recently experienced a decline in profit margin although sales have remained steady. An analysis of direct cost inputs revealed the following. A favorable materials price variance An unfavorable materials quantity variance A favorable labor rate variance An unfavorable labor efficiency variance Which one of the following is the most likely cause of the decline in the profit margin? a. The cheese supplier has raised prices. b. New employees are still learning the recipes. c. The employees are being paid more than the budgeted standard rates. d. The employees are working fewer hours than budgeted standard hours.
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455 Answers - CMA Part 1 Practice Questions 1. d 35. b 69. d 2. c 36. b 70. a 3. a 37. b 71. b 4. a 38. d 72. a 5. c 39. c 73. a 6. a 40. d 74. b 7. b 41. b 8. b 42. a 9. b 43. a 10. b 44. a 11. d 45. b 12. c 46. a 13. c 47. b 14. d 48. b 15. c 49. a 16. c 50. b 17. a 51. a 18. a 52. d 19. c 53. c 20. d 54. b 21. d 55. a 22. b 56. d 23. c 57. d 24. c 58. c 25. d 59. a 26. b 60. b 27. d 61. c 28. a 62. b 29. d 63. b 30. a 64. a 31. c 65. d 32. b 66. a 33. c 67. c 34. b 68. b
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456 CMA Part 2 - Financial Decision Making Additional Examination Practice Questions Released March 2016 © Copyright 2017 Institute of Certified Management Accountants
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457 CMA Part 2 - Financial Decision Making Examination Practice Questions 1. A company sells two products: Sparta and Volta. Volta is manufactured by a third party supplier, which charges the company a contractual price for each unit of Volta manufactured. A summary of revenue and costs assumptions for each product is as follows.
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