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Certified Management Accountant (CMA) Certification Practice Exam Questions And ( Answers) Plus Rationales 2026 Q&A Instant Download Pdf
Part 1: Financial Planning, Performance, and Analytics
Part 2: Strategic Financial Management
Total: 100 Questions — Part 1 (Q1–50), Part 2 (Q51–100)
PART 1: Financial Planning, Performance, and Analytics (QUESTIONS 1–50)
- Which of the following best describes the primary purpose of
- To prepare financial statements for external users
- To provide information for internal decision-making
- To comply with tax reporting requirements
- To audit the organization’s financial data 1 / 3
management accounting?
Rationale: Management accounting focuses on internal decision-making to
improve planning, control, and performance management.
- The cost of materials that can be directly traced to a finished product is
known as:
- Direct material cost
- Indirect material cost
- Overhead cost
- Conversion cost
Rationale: Direct materials are easily and physically traceable to the
production of a specific product.
3. A flexible budget is designed to:
- Remain constant regardless of activity levels
- Adjust to changes in volume or activity
- Reflect only fixed costs
- Measure past performance
Rationale: Flexible budgets adjust based on activity, allowing better
performance evaluation.
4. Variance analysis is primarily used to:
- Prepare budgets
- Record transactions
- Control operations and improve efficiency
- Determine cash flows 2 / 3
Rationale: Variance analysis compares results to standards to identify
deviations and corrective actions.
- Which cost is considered a period cost?
- Direct labor
- Manufacturing overhead
- Selling expenses
- Direct materials
Rationale: Selling expenses are period costs because they are not directly
tied to manufacturing.
6. The contribution margin is equal to:
- Sales minus fixed costs
- Sales minus variable costs
- Sales minus total costs
- Variable costs minus fixed costs
Rationale: Contribution margin shows how much revenue contributes to
covering fixed costs and generating profit.
7. A break-even point is the level of sales where:
- Total variable costs equal total fixed costs
- Total contribution margin equals zero
- Total revenue equals total costs
- Total profit equals total revenue
Rationale: At break-even, total costs and total revenues are equal, resulting
in zero profit.
- / 3
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