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IMA CMA Part 1: Financial Planning - Performance and Analytics Sample Questions:
1. All of the following are limitations of teaming curve analysis except that
A) the learning rate tends to be affected by seasonality in sales
B) the learning rate is assumed to be constant
C) the estimated learning rate might be unreliable because other factors could have caused the change
D) it is appropriate only for labor-intensive repetitive tasks
2. In trying to predict the returns on the stock market, a novice investor collected data on the sightings of sperm whales off the eastern coast of North America and the performance of the Dow Jones Industrial Average (the Dow) A regression of the two variables resulted in a correlation coefficient of -0.90 or a coefficient of determination (r2) of 81%. The sightings of whales seemed to be negatively correlated with the performance of the Dow. The novice investor should
A) conclude that the poor performance of the Dow leads to high sightings of sperm whales
B) conclude that this is an example of spurious correlation
C) track the sighting of sperm whales and buy the Dow when sightings are low: conclude that sperm whale sightings are a strong indicator of poor performance of the Dow
D) conclude that there is a cause-and-effect relationship between the two variables
3. Which one of the following represents a temporary difference under U.S GAAP?
A) interest received in municipal bonds
B) Percentage depletion of natural resources
C) Accrued liabilities
D) Fines and expenses resulting from violation of the law
4. would you recommend any changes to the job responsibilities of ZFl's payroll administrator from an internal control perspective? Explain why.
Essay
Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (¥ in millions).
ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.
5. A company s accounting department is run by only one accountant. Which one of the following can be implemented as a detective control?
A) Require the accountant to double-check his work
B) Train another employee to perform bank reconciliations
C) Require the accountant to update cash balance regularly
D) Train another employee to record journal entries.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: Only visible for members | Question # 5 Answer: B |






