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IMA CMA-Strategic-Financial-Management Exam Syllabus Topics:
| Section | Weight | Objectives |
| Topic 1: Enterprise Risk Management | 10% | - Risk identification and classification
- 1. ERM framework and governance
- 2. Risk assessment and mitigation strategies
- 3. Types of business risk: financial, operational, legal, strategic
|
| Topic 2: Financial Statement Analysis | 20% | - Basic financial statement analysis
- 1. Common-size and common-base year statements
- 2. Earnings quality and quality of financial reporting
- 3. GAAP vs IFRS differences
- 4. Financial ratios: liquidity, leverage, activity, profitability
|
| Topic 3: Capital Investment Decisions | 10% | - Capital budgeting process
- 1. Real options and valuation
- 2. Project risk and sensitivity analysis
- 3. Discounted cash flow techniques: NPV, IRR, payback
|
| Topic 4: Business Decision Analysis | 25% | - Cost-volume-profit analysis
- 1. Risk analysis and uncertainty
- 2. Decision-making under risk
- 3. Marginal analysis and relevant costs
- 4. Pricing decisions: market-based and cost-based
|
| Topic 5: Corporate Finance | 20% | - Risk and return
- 1. Working capital management
- 2. Capital structure and optimal financing
- 3. Types of risk and return measurement
- 4. Raising capital and dividend policy
- 5. Cost of capital: debt, equity, WACC
|
| Topic 6: Professional Ethics | 15% | - IMA Statement of Ethical Professional Practice
- 1. Ethical principles and standards
- 2. Corporate responsibility and governance
- 3. Resolution of ethical conflict
|
IMA CMA Part 2: Strategic Financial Management Sample Questions:
A corporation has $80 million in current assets comprised of $30 million in inventory and $50 million in cash and marketable securities it has current liabilities of $50 million. If the corporation purchases an additional $10 million in inventory with trade credit this would
- A. increase its current ratio and increase its quick ratio
- B. not change its current ratio and not change its quick ratio
- C. decrease its current ratio and decrease its quick ratio
- D. not change its current ratio and decrease its quick ratio
Reveal Solution
Discussion
Determine whether me €300 fee is a facilitating payment
Essay
Online Learning Inc. lOLI) is a privately-held company based in the IUC that specializes in providing online courses in English as a Second Language (ESL). OLI is trying to set up a new sales office in a foreign country.
It needs a business license to operate in that country. The license normally lakes six months to obtain. An official of that country said that he could expedite the process for a fee of €300.
OLI estimates the new sales office can bring €300,000 incremental profit annually OLI has just launched a new online 40-houi course to help adult ESL learners master basic business English. The price of the new course is €500 per student, the variable cost is €300 per student, and the total fixed cost of the new course is
€300.000 per year OLI spent €200.000 to develop the new course before launching it. There are many online course providers in the marketplace, and each has its own feature However, OLI's highly qualified staff and good reputation have enabled it to charge a premium price compared to its major competitors. Recent market research indicates that if OLI raises the price of its new business English course by 10V the student enrollment would decrease by 5V A regional airlines company in Asia has approached OLI and offered to enroll 1.000 of its employees in the new course if OLI would agree to a special price of €350 per employee If OLI accepts this offer, an additional €10,000 onetime cost would be required to temporally expand its capacity to accommodate the new students.
Reveal Solution
Discussion
Correct Answer:
See the explanation for the answer.
Explanation
The 300 is a facilitating payment as it will speed up the process of getting the license 'cine company which normally requites 6 months
The production process of a company s main product yields a by-product Production costs or $700,000 are incurred during this process and $300,000 m additional costs are incurred to finalize the main product. The by-product can be sold for $200 000 without further processing A manager proposed the conversion of the by-product into another product that would cost $100,000 and generate revenue of $250,000. When deciding on this proposal the company should
- A. treat the $100,000 conversion cost as the marginal cost 1o produce the new product
- B. ignore the $200 000 sales revenue for the by-product because it Is irrelevant
- C. evaluate whether other nonfinancial factors outweigh the Si 50.000 in incremental income
- D. select an approbate cost allocation method to allocate the $1 100 000 joint costs
Reveal Solution
Discussion
Which one of the following moral philosophies states that the morality of an action is inherent and not based on the consequences of the action?
- A. Utilitarianism
- B. Relativism
- C. Teleology
- D. Deontology
Reveal Solution
Discussion
Custom Ceramics produces two hand-painted items a large bowl and a large platter. Relevant information for each of these items is shown below
- A. The company should produce only bowls because the sales price per Bowl is higher
- B. The company should produce only bowls because the contribution margin per bowl is higher.
- C. The company should produce only platters because the variable cost per platter is lower
- D. The company should produce only platters because the contribution margin per painting hour is higher
Reveal Solution
Discussion