CERTIFIED MANAGEMENT ACCOUNTANT
COMPREHENSIVE EXAMS SET 2026
SOLVED QUESTIONS
●● What is the primary purpose of managerial accounting information?
Answer: To help managers make decisions
●● Which of the following is a disadvantage of a centralized
organizational structure? Answer: Slower response to local market
conditions
●● What does the term "contribution margin" represent in cost-volume-
profit analysis? Answer: The amount of revenue available to cover fixed
costs and contribute to profits
●● What is the formula to calculate the current ratio? Answer: Current
assets divided by current liabilities
●● Which inventory costing method typically results in the lowest
reported net income during a period of rising prices? Answer: LIFO
(Last-In, First-Out)
, ●● What is the formula for calculating the earnings per share (EPS)
ratio? Answer: Net income divided by average number of shares
outstanding
●● Which variance measures the difference between the actual cost of
materials used and the standard cost of materials for the actual
production level? Answer: Materials price variance
●● What type of cost changes with changes in the level of activity
within the relevant range? Answer: Variable cost
●● Which financial statement reports the financial position of a
company as of a specific date? Answer: Balance sheet
●● What is the formula for calculating return on investment (ROI)?
Answer: Net income divided by average total assets
●● Which type of cost changes in total with changes in the level of
activity but remains constant per unit? Answer: Fixed cost
●● What is the formula for calculating the payback period? Answer:
Initial investment divided by annual net cash inflow
COMPREHENSIVE EXAMS SET 2026
SOLVED QUESTIONS
●● What is the primary purpose of managerial accounting information?
Answer: To help managers make decisions
●● Which of the following is a disadvantage of a centralized
organizational structure? Answer: Slower response to local market
conditions
●● What does the term "contribution margin" represent in cost-volume-
profit analysis? Answer: The amount of revenue available to cover fixed
costs and contribute to profits
●● What is the formula to calculate the current ratio? Answer: Current
assets divided by current liabilities
●● Which inventory costing method typically results in the lowest
reported net income during a period of rising prices? Answer: LIFO
(Last-In, First-Out)
, ●● What is the formula for calculating the earnings per share (EPS)
ratio? Answer: Net income divided by average number of shares
outstanding
●● Which variance measures the difference between the actual cost of
materials used and the standard cost of materials for the actual
production level? Answer: Materials price variance
●● What type of cost changes with changes in the level of activity
within the relevant range? Answer: Variable cost
●● Which financial statement reports the financial position of a
company as of a specific date? Answer: Balance sheet
●● What is the formula for calculating return on investment (ROI)?
Answer: Net income divided by average total assets
●● Which type of cost changes in total with changes in the level of
activity but remains constant per unit? Answer: Fixed cost
●● What is the formula for calculating the payback period? Answer:
Initial investment divided by annual net cash inflow
