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Exam Code: CMA-Strategic-Financial-Management
Exam Questions: 126
CMA Part 2 Strategic Financial Management
Updated: 25 Aug, 2026
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Practicing : 1 - 5 of 126 Questions
Question 1

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?

Options :
Answer: A

Question 2

Studler’s Restaurant is considering a contract to supply the weal senior citizen center with 10,000 meals. Regular sales at regular prices would be unaffected. The food cost for each meal s S3 Additional costs incurred as a result of the contract would De variable overhead of S 50 and variable selling general and administrative costs of S SO per meal sold. The selling price per meal would be $5, A total of $20,000 in fixed costs would be allocated at $2 per meal. The fixed costs are part of an overall total of $500,000 in annual fixed costs incurred regardless of the contract. What will be the effect on pretax income if Studiers takes the special order?

Options :
Answer: A

Question 3

The best discount rate to the use for evaluate of investment opportunities is the 

Options :
Answer: A

Question 4

Marsalls Products Inc. manufactures and sells two products CD-ROMs and DVD's. The latest forecast on me
products and their costs tor the coming year is shown in the following table.
Note 1: Fixed manufacturing cost of Si.500 000 per year is allocated to products based on the number of
machine hours required to produce the product at a rate of S3 per machine hour
The Manufacturing Team leader just informed the CEO that a fire occurred at one of the manufacturing lines
and that line would be unavailable for the next 12 months. The result is that mere will only be 400 000
machine Hours available The CEO requested the management team to revise the plan for the coming year
based on the new constraint. The Marketing Team leader stated that in order to minimize customer complaints
about the shortage, a minimum of 100,000 units of each product should be produced With the new information
from the Manufacturing and Marketing teams what is the optimal product mix for the coming 12 months''
Assume Marsalls can sell allot its production.

Options :
Answer: D

Question 5

Custom Ceramics produces two hand-painted items a large bowl and a large platter. Relevant information for each of these items is shown below 

Options :
Answer: D

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