Certification Practice Exam Questions And

Certified Management Accountant (CMA) Certification Practice Exam Questions And Correct Answers (Verified 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

management accounting?

• 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

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 actual 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 actual 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