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Exam Code: CMA-Financial-Planning-Performance-and-Analytics

Exam Name: CMA Part 1: Financial Planning - Performance and Analytics Exam

Updated: Aug 01, 2026

Q & A: 112 Questions and Answers

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IMA CMA-Financial-Planning-Performance-and-Analytics Exam Syllabus Topics:

SectionWeightObjectives
Internal Controls15%- Governance, Risk and Compliance
  • 1. Internal control procedures
    • 2. Internal control frameworks (COSO)
      • 3. Risk assessment and management
        - System Controls and Security
        • 1. General and application controls
          • 2. Data security and backup
            • 3. Business continuity planning
              External Financial Reporting Decisions15%- Financial Statements
              • 1. Statement of changes in equity
                • 2. Statement of cash flows
                  • 3. Balance sheet
                    • 4. Integrated reporting
                      • 5. Income statement
                        - Recognition, Measurement, Valuation and Disclosure
                        • 1. Liability valuation
                          • 2. Income measurement
                            • 3. Equity transactions
                              • 4. Revenue recognition
                                • 5. Asset valuation
                                  • 6. U.S. GAAP vs IFRS differences
                                    Performance Management20%- Performance Measures
                                    • 1. Residual Income (RI)
                                      • 2. Return on Investment (ROI)
                                        • 3. Economic Value Added (EVA)
                                          • 4. Balanced Scorecard
                                            - Responsibility Centers and Reporting Segments
                                            • 1. Segment reporting
                                              • 2. Cost, profit and investment centers
                                                • 3. Transfer pricing
                                                  - Cost and Variance Measures
                                                  • 1. Static and flexible budget variances
                                                    • 2. Mix and yield variances
                                                      • 3. Material, labor and overhead variances
                                                        Planning, Budgeting and Forecasting20%- Pro Forma Financial Statements
                                                        - Budgeting Concepts and Methodologies
                                                        • 1. Activity-based budgeting
                                                          • 2. Zero-based and rolling budgets
                                                            • 3. Flexible budgets
                                                              • 4. Operating and financial budgets
                                                                - Strategic Planning
                                                                • 1. Strategic planning process and analysis
                                                                  - Forecasting Techniques
                                                                  • 1. Time series analysis
                                                                    • 2. Regression analysis
                                                                      • 3. Expected value
                                                                        • 4. Learning curve analysis
                                                                          Cost Management15%- Measurement Concepts
                                                                          • 1. Cost behavior
                                                                            • 2. Absorption vs variable costing
                                                                              • 3. Actual, normal and standard costs
                                                                                - Costing Systems
                                                                                • 1. Joint and by-product costing
                                                                                  • 2. Job order costing
                                                                                    • 3. Process costing
                                                                                      • 4. Activity-based costing
                                                                                        - Supply Chain and Business Process Improvement
                                                                                        - Overhead Costs
                                                                                        Technology and Analytics15%- Data Governance
                                                                                        • 1. Data quality and integrity
                                                                                          • 2. Data security policies
                                                                                            - Information Systems
                                                                                            • 1. Financial systems architecture
                                                                                              • 2. Enterprise Resource Planning (ERP)
                                                                                                - Technology-Enabled Finance Transformation
                                                                                                - Data Analytics
                                                                                                • 1. Data visualization
                                                                                                  • 2. Predictive and prescriptive analytics
                                                                                                    • 3. Big data concepts

                                                                                                      IMA CMA Part 1: Financial Planning - Performance and Analytics Sample Questions:

                                                                                                      1. Which one of the following best describes the difference between a normal costing system and an actual costing system?

                                                                                                      A) Both direct labor cost and direct material cost are estimated using a predetermined rate under a normal costing system, while they are the actual value under an actual costing system
                                                                                                      B) Factory overhead cost is estimated using a predetermined rate under a normal costing system, while it is me actual value under an actual costing system.
                                                                                                      C) Direct labor cost is estimated using a predetermined rate under a normal costing system, while it is the actual value under an actual costing system.
                                                                                                      D) Direct material cost is estimated using a predetermined rate under a normal costing system while it is the actual value under an actual costing system


                                                                                                      2. Stone Ltd manufactures socket wrenches .The company produced 400 000 wrenches and sold 350,000 this year. The following information pertains to the costs accumulated in Stone's inventory.

                                                                                                      What is the difference between Stones operating income under absorption costing and variable costings

                                                                                                      A) $28,000 lower using variable costing
                                                                                                      B) $36.500 higher using absorption costing
                                                                                                      C) $19,750 lower using variable costing
                                                                                                      D) $16,750 higher using absorption costing.


                                                                                                      3. A company reported that its shareholders' equity decreased in the recent year. This could occur if

                                                                                                      A) dividends paid were greater than net income
                                                                                                      B) dividends paid were less than net income.
                                                                                                      C) new common stock was sold for greater than par value
                                                                                                      D) new common stock was sold for less than par value


                                                                                                      4. A company has prepared the following pro forma income statements. It plans to sell 10,000 units in the current year and 11.500 units next year.

                                                                                                      A) Increase sales revenue by 15%.
                                                                                                      B) Reduce operating expenses by $1.00 per unit
                                                                                                      C) Increase gross profit margin by 15%
                                                                                                      D) Reduce cost of goods sold by $1.00 per unit


                                                                                                      5. Identity two internal factors that enable the Food-To-Go division to have competitive advantages over Its competitors.
                                                                                                      Essay
                                                                                                      Food Depot Ltd (FDD is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants FDL has been profitable m recent years and has a very strong cash position FDL's newest division. Food-To-Go. is an online meal ordering and delivery platform acquired by FDL two years ago.
                                                                                                      In 20X7. sales for the entire company were SI billion, with 50% of the business coming from the Airline Catering division. FDL is the country's leading airline catering services provider and controls 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
                                                                                                      The Food-To-Go division only contributed 5% of FDL's total sales in 20X7 and is far behind in competing for market share of the online meal ordering and deliver, industry. It is estimated that Food-To-Go's sales were only 20% of the industry leader's sales However, the outlook for the online meal ordering and delivery services industry is bright. The compound annual growth rate of the industry since it started three years ago was 50%. It is estimated the rapid growth of the industry will continue in the foreseeable future.
                                                                                                      The costs of shared corporate services are allocated based on each division s revenue FDL usually caps its capital expenditure budget to 4% of budgeted sales revenue In a recent capital budget coordination meeting.
                                                                                                      Smith Whitney, the head of the Airline Catering division. complained that his division is underfunded on capital projects . The budgeted capital expenditure had been much less than 4 % of the division's budgeted sales in the past three years He argued that his division is the company's best-performing division, and it needs more funds to maintain its market share m the industry Whitney wants to reduce the capital expenditure budget for Food-To-Go and reallocate those funds to his division.
                                                                                                      Susan Wiley, the bead of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company Wiley argues that her division had the highest ROI in 20X7. and it deserves more capital funding FDL's required rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follows (in $ millions).


                                                                                                      Solutions:

                                                                                                      Question # 1
                                                                                                      Answer: B
                                                                                                      Question # 2
                                                                                                      Answer: D
                                                                                                      Question # 3
                                                                                                      Answer: A
                                                                                                      Question # 4
                                                                                                      Answer: D
                                                                                                      Question # 5
                                                                                                      Answer: Only visible for members

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