IMA CMA-STRATEGIC-FINANCIAL-MANAGEMENT - Questions & Answers

Slam-Dunk Shoes has 5,000 pairs or damaged shoes in inventory. The cost of these shoes was $51,000. in their present condition, the shoes may be sold at clearance prices for $29,000 Slam-Dunk can have the shoes repaired at a cost of $77,000 after which they can be sold for $100,000.

What is the opportunity cost of selling the shoes in their present damaged condition?

A capital budgeting analysis involves an initial investment of $500. The expected cash inflow in Year 1 is $300, and the expected cash inflow in Year 2 is $350.

Which one of the following equations can get the correct internal rate of return (IRR) of this project?

A company with idle capacity has been contacted by a new customer to supply 10,000 units of its products for a special batch order its costs are as follows.

The company's normal soling price is SI00 per unit but the customer is wiling to pay only S70 pet unit Should the company accept the special order''

London Corporation has in the following cost structure for two of its product.

Assume that me current sales level is 15,000 units of Product A and 5,000 units of Product B Using cost-volume-profit analysis which of the following courses of action would maximize profit in the short term? Assume that fixed costs are sunk costs in the short term.

Javier makes hand-looted learner dog collars. The materials cost $10 per collar and the collars are sold for $50 each.
Javier sells me collars at a local farmer's market mat charges S100 per month for space rental if Javier's income tax rate is 30%, how many collars must Javier sell each year to earn $1,000 net income?

Willcox Company plans to sell 100 000 units of Us only product for $300 per unit to its existing customers It has received a new customer request for 10,000 units at a selling price of $2S0 per unit Willcox's cost structure is shown below.

Capacity exists lo produce an additional 10 000 units and accepting the order would have no long-term implications If the order is accepted however a specialized piece of equipment costing S25 000 would need to I purchased If Wilcox accepts the special order its income would increase by

A management accountant overheard the company's procurement manager discussing a kickback payment for one of the company s recent projects.
The procurement manager promised to pay a share to the other person II the arrangement was kept confidential According to the IMA Statement of Ethical Professional Practice which one of the following is the most appropriate action for the management accountant to take?

Which one of the following would best ensure the effectiveness of an organization s code of conduct?

if a company increases the price of its product from $3010 $35, demand would decrease from 30, 000 units to 20.000 units.

What is the price elasticity of demand for the company using the midpoint formula?

In an Enterprise Risk Management environment, which one of the following is the best example of risk sharing?