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Free CMA Exam Braindumps (page: 11)

Page 11 of 336
PDF with 1336 Questions
View Related Case Study

The process of developing plans for a company's expected operations and controlling the operations to help carry out those plan is?

  1. Preparing a period budget.
  2. Preparing a master budget.
  3. Budgetary control
  4. Participative budgeting.

Answer(s): C

Explanation:

The budget has same structure as the organization itself. Is made up of a hierarchy of smaller budgets, each representing the plan of a division, department, or other unit in the organizational structure. Successful budgeting requires completion of plan that states organizational goals before the budgeting process. Prevention and detection of deviations from the budget are the control purposes of budgets.



View Related Case Study

Zero-based budgeting force managers to?

  1. Estimate a product's revenues and expenses over its expected life cycle.
  2. Prepare a budget based on historical costs.
  3. Formulate a budget by objective rather than function.
  4. Justify all expenditures at the beginning of every budget period.

Answer(s): D

Explanation:

Zero-based budget is a planning process in which each manager must justify his/her department's full budget for each period. The purpose is to encourage periodic reexamination of all costs in the hope that some can be reduced or eliminated.



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Which of the following statements regarding budgets is false?

  1. Budgets present organizational plans in a formal, logical, and integrated manner.
  2. Budgets are used only as a planning function.
  3. Budgets may be developed for cash flows or labor usage.
  4. A budget is a plan that contains a quantitative statement of expected results.

Answer(s): B

Explanation:

Budget formulation is a planning function; however, budgets are also useful control devices. Budget provide a basis for control of performance through comparisons of actual with budgeted data. They permit analysis of variations from plans and signal the need for corrective managerial action.



View Related Case Study

Strategic planning is?

  1. Short term.
  2. Operational
  3. Long term
  4. Informal.

Answer(s): C

Explanation:

Strategic planning, also called long-term planning. Covers periods from 1 to 20 years. Strategic planning is somewhat difficult because of uncertainty about future conditions. Thus, long-range plans are more general and exclude operational detail.



Page 11 of 336



Post your Comments and Discuss Financial CMA exam with other Community members:

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INDIA
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Anonymous
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Georgodino commented on April 29, 2021
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Amer Alnajjar commented on March 11, 2019
Still the test is under process
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