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IMA CMA-Strategic-Financial-Management Exam Overview:
| Certification Vendor: | Institute of Management Accountants (IMA) |
| Exam Name: | CMA Part 2: Strategic Financial Management |
| Exam Number: | CMA Part 2 |
| Real Exam Qty: | 100 multiple-choice questions + 2 essay scenarios |
| Exam Price: | $495 (professional members per part) / $370 (student members per part) |
| Exam Duration: | 240 minutes |
| Passing Score: | 360 (scaled score out of 500) |
| Available Languages: | English |
| Related Certifications: | CMA Part 1: Financial Planning, Performance and Analytics |
| Certificate Validity Period: | No fixed expiration; requires ongoing CPE (Continuing Professional Education) to maintain certification |
| Exam Format: | Multiple-choice questions (MCQ), Essay scenarios |
| Recommended Training: | Hock International CMA Review Gleim CMA Review Wiley Efficient Learning CMA |
| Exam Registration: | IMA CMA Certification Registration |
| Sample Questions: | IMA CMA-Strategic-Financial-Management Sample Questions |
| Exam Way: | Computer-based testing (CBT) administered at Prometric testing centers |
| Pre Condition: | Bachelor's degree from an accredited institution and 2 years of relevant work experience in management accounting or financial management (can be completed before or within 7 years after passing the exam parts) |
| Official Syllabus URL: | https://www.imanet.org/cma-certification |
IMA CMA-Strategic-Financial-Management Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Investment Decisions | - Investment Appraisal and Selection - Capital Budgeting Techniques |
| Corporate Finance | - Capital Structure and Cost of Capital - Working Capital Management |
| Professional Ethics | - Ethical Decision-Making in Financial Management |
| Risk Management | - Enterprise Risk Management - Financial Risk Identification and Mitigation |
| Decision Analysis | - Budgeting and Forecasting Techniques - Performance Measurement and Variance Analysis |
| Financial Statement Analysis | - Financial Statement Interpretation - Ratio and Performance Analysis |
IMA CMA Part 2: Strategic Financial Management Sample Questions:
1. Discuss whether AMI should use a cost-based or a market-based pricing approach. Explain your answer.
Essay
Food Depot Ltd, (FDL) 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 in 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 year ago.
In 20X7, sales for the entire company were $1 billion, with 50% of the business coming from the Airline Catering division. FDL is the country 's leading airline catering services provider and control 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-division only contribution 5% of FDL's total sales in 20X7 and is far behind in competing for marketing for market share of the online meal ordering and delivery 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.
Susan Willey, the head of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company. Wiley argues that ber division bad the highest ROI in 20X7, and it deserves more capital finding. FDL's requested rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follow (in $ millions)
2. If a CMA is asked to conduct a financial assessment of a company owned by a close relative, what would be the proper response under the credibility standard of the IMA Statement of Ethical Professional Practice?
A) Provide an assessment that is timely and accurate despite the personal relationship
B) Communicate the existence of a constraint that might preclude responsible judgment
C) Advise all parties of a potential conflict of interest
D) Keep information confidential except when authorized By the relative
3. Explain two potential benefits for Guda if it acquires Blue Moon.
Essay
Food Depot Ltd, (FDL) 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 in 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 year ago.
In 20X7, sales for the entire company were $1 billion, with 50% of the business coming from the Airline Catering division. FDL is the country 's leading airline catering services provider and control 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-division only contribution 5% of FDL's total sales in 20X7 and is far behind in competing for marketing for market share of the online meal ordering and delivery 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.
Susan Willey, the head of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company. Wiley argues that ber division bad the highest ROI in 20X7, and it deserves more capital finding. FDL's requested rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follow (in $ millions)
4. Ryan Fitzgerald the vice president of finance for Southwest Development Company is evaluating a proposed expansion plan currently. Southwest Development has $660 million of total assets and the company's equity ratio Is 38% Southwest Development has never issued preferred shares. The company's earnings before interest and taxes (EBIT) are $83 6 million. The interest rate on their debt is 7 2% and the company's tax rate is 30%. The company is planning to expand by investing $110 million. In assets. As result both sales and EBIT will increase by 20%. The expansion will be financed with 40% debt and 60% common equity If Southwest Development proceeds with the expansion what will happen to the company's return on equally (ROE)?
A) ROE decreases from 28.25% to 26.40%.
B) ROB increases from 14.07% to 14.12%.
C) ROE increases from 19.78% to 20.17%.
D) ROE decreases from 19.78% to 18.48%.
5. A company has incurred $2,500 to produce its four products. These products can either be sold as is or processed further. The selling prices and additional costs necessary to finish these products ace shown below
A) Products B
B) Product D
C) Products A
D) Product C
Solutions:
| Question # 1 Answer: Only visible for members | Question # 2 Answer: C | Question # 3 Answer: Only visible for members | Question # 4 Answer: D | Question # 5 Answer: B |
By Jodie
