CERTIFIED MANAGEMENT ACCOUNTANT (CMA)
EXAM NEWEST 2026 UPDATE ACTUAL PREP EXAM
COMPLETE 100+ QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||BRAND NEW!!
Most Tested Content Areas: Financial Planning,
Performance, and Analytics; Cost Management;
Budgeting; Internal Controls; Performance
Measurement; Decision Analysis; Risk Management;
Professional Ethics
1. The budgeting approach that starts from zero each period and
requires justification of all expenses is called ________.
Answer: ZERO-BASED BUDGETING
Explanation: Zero-based budgeting requires every cost to be
justified for each new period rather than using prior budgets as a
base.
2. The costing method that assigns only variable manufacturing costs
to products is ________.
Answer: VARIABLE COSTING
Explanation: Variable costing includes direct materials, direct
labor, and variable overhead, excluding fixed manufacturing
overhead.
,3. The difference between sales revenue and variable costs is known
as ________.
Answer: CONTRIBUTION MARGIN
Explanation: Contribution margin indicates how much revenue
contributes toward covering fixed costs and profit.
4. A system of evaluating performance by comparing actual results
to planned objectives is called ________.
Answer: PERFORMANCE MANAGEMENT
Explanation: Performance management uses metrics and
comparisons to assess organizational effectiveness.
5. The internal control component that involves policies and
procedures to ensure directives are carried out is ________.
Answer: CONTROL ACTIVITIES
Explanation: Control activities include approvals, reconciliations,
and segregation of duties.
6. Costs that remain constant in total regardless of production
volume are ________ costs.
Answer: FIXED
Explanation: Fixed costs do not change with activity levels within
the relevant range.
7. The method that allocates overhead based on multiple cost
drivers is ________ costing.
Answer: ACTIVITY-BASED COSTING
Explanation: ABC assigns overhead using activities that consume
resources, improving accuracy.
8. The point at which total revenue equals total cost is the ________
point.
, Answer: BREAK-EVEN
Explanation: At break-even, profit is zero because revenues exactly
cover costs.
9. A financial plan covering one year or less is called a ________
budget.
Answer: OPERATING
Explanation: Operating budgets detail expected revenues and
expenses for normal operations.
10. Variance caused by paying a different price than expected for
materials is ________ variance.
Answer: PRICE
Explanation: Material price variance measures the difference
between actual and standard price.
11. The excess of actual costs over standard costs is an
________ variance.
Answer: UNFAVORABLE
Explanation: Unfavorable variances indicate higher costs or lower
revenues than planned.
12. A report showing financial position at a specific date is the
________.
Answer: BALANCE SHEET
Explanation: The balance sheet lists assets, liabilities, and equity at
a point in time.
13. The rate used to discount future cash flows to present value
is the ________ rate.
Answer: DISCOUNT
EXAM NEWEST 2026 UPDATE ACTUAL PREP EXAM
COMPLETE 100+ QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||BRAND NEW!!
Most Tested Content Areas: Financial Planning,
Performance, and Analytics; Cost Management;
Budgeting; Internal Controls; Performance
Measurement; Decision Analysis; Risk Management;
Professional Ethics
1. The budgeting approach that starts from zero each period and
requires justification of all expenses is called ________.
Answer: ZERO-BASED BUDGETING
Explanation: Zero-based budgeting requires every cost to be
justified for each new period rather than using prior budgets as a
base.
2. The costing method that assigns only variable manufacturing costs
to products is ________.
Answer: VARIABLE COSTING
Explanation: Variable costing includes direct materials, direct
labor, and variable overhead, excluding fixed manufacturing
overhead.
,3. The difference between sales revenue and variable costs is known
as ________.
Answer: CONTRIBUTION MARGIN
Explanation: Contribution margin indicates how much revenue
contributes toward covering fixed costs and profit.
4. A system of evaluating performance by comparing actual results
to planned objectives is called ________.
Answer: PERFORMANCE MANAGEMENT
Explanation: Performance management uses metrics and
comparisons to assess organizational effectiveness.
5. The internal control component that involves policies and
procedures to ensure directives are carried out is ________.
Answer: CONTROL ACTIVITIES
Explanation: Control activities include approvals, reconciliations,
and segregation of duties.
6. Costs that remain constant in total regardless of production
volume are ________ costs.
Answer: FIXED
Explanation: Fixed costs do not change with activity levels within
the relevant range.
7. The method that allocates overhead based on multiple cost
drivers is ________ costing.
Answer: ACTIVITY-BASED COSTING
Explanation: ABC assigns overhead using activities that consume
resources, improving accuracy.
8. The point at which total revenue equals total cost is the ________
point.
, Answer: BREAK-EVEN
Explanation: At break-even, profit is zero because revenues exactly
cover costs.
9. A financial plan covering one year or less is called a ________
budget.
Answer: OPERATING
Explanation: Operating budgets detail expected revenues and
expenses for normal operations.
10. Variance caused by paying a different price than expected for
materials is ________ variance.
Answer: PRICE
Explanation: Material price variance measures the difference
between actual and standard price.
11. The excess of actual costs over standard costs is an
________ variance.
Answer: UNFAVORABLE
Explanation: Unfavorable variances indicate higher costs or lower
revenues than planned.
12. A report showing financial position at a specific date is the
________.
Answer: BALANCE SHEET
Explanation: The balance sheet lists assets, liabilities, and equity at
a point in time.
13. The rate used to discount future cash flows to present value
is the ________ rate.
Answer: DISCOUNT
