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Free CMA Exam Braindumps (page: 2)

Page 2 of 336
PDF with 1336 Questions
View Related Case Study

Certain phases of the planning process should be formalized for all of the following reasons expect that

  1. Informal plans and goals lack the necessary precision, understanding, and consistency.
  2. Formal plans can act as a constraint on the decision-making freedom of managers and supervisors
  3. Formalization requires the establishment and observance of deadlines for decision making and planning
  4. Formalization provides a logical basis for rational flexibility in planning

Answer(s): B

Explanation:

A formal plan is a prescription for organizational behavior and a set of goals. Management decision making is therefore necessarily constrained by the limitations established I the plan.



View Related Case Study

All of the following are characteristics of the strategic planning process except the

  1. Emphasis on the long run
  2. Analysis of external economic factors
  3. Review of the attributes and behavior of the organization's competition
  4. Analysis and review of department budgets

Answer(s): D

Explanation:

Strategic planning is the process of setting the overall organizational objectives and goals, and involves the drafting of strategic plans. Long-range (strategic) planning is based on identifying and specifying organizational goals and objectives, evaluating the strengths and weaknesses of the organization, assessing risk levels, forecasting the future direction and influences of factors relevant to the organization (such as market trend, changes in technology, international competition, and social change), and deriving the best strategy for reaching the objectives given the organization's strengths and weaknesses and the relevant future trends. Analyzing and reviewing department budgets is an aspect of operational management and not a part of strategic planning.



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The first step in the sales planning process is to

  1. Assemble all the data that are relevant in developing a comprehensive sales plan
  2. Develop management guidelines specific to sales planning, including the sales planning process and planning responsibilities
  3. Prepare a sales forecast consistent with specified forecasting guidelines, including assumptions
  4. Secure management commitment to attain the goals specified in the comprehensive sales plan

Answer(s): B

Explanation:

Sales planning is a starting point for many other plans. The resources required, revenues to be earned, and costs to be incurred depend on sales. The sales plan of an operating unit should include as much specific information from that unit's management as possible, but must conform to the strategic plans or corporate management. Thus, top management must provide a context within which operational managers can prepare their plans. Corporate support includes economic forecasts, overall market sales forecasts, and capital budgets.



View Related Case Study

Which of the following is a market-oriented definition of a business versus a product- oriented definition of a business?

  1. We make air conditioners and furnaces
  2. We supply energy
  3. We produce movies
  4. We sell men's shirts and pants

Answer(s): B

Explanation:

Business should be defined in market terms, that is, in terms of needs and customer groups. Moreover, a distinction should be made between a target market definition and as strategic market definitions. For example, a target market for a railroad might be freight hauling, but a strategic market might be transportation of any goods and people. Accordingly, stating that a business supplies energy is a market-oriented definition as opposed to the product-oriented definition. Moreover, it is also a strategic market definition.



Page 2 of 336



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

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INDIA
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Still the test is under process
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