CMA Exam

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IMANET CMA Exam Sample Questions

Question: 5

Certain phases of the planning process should be formalized for all of the following reasons expect that

  1. Informal plans and goals lack the necessary precision, understanding, and consistency.
  2. Formal plans can act as a constraint on the decision-making freedom of managers and supervisors
  3. Formalization requires the establishment and observance of deadlines for decision making and planning
  4. Formalization provides a logical basis for rational flexibility in planning


Answer: B

Explanation:

A formal plan is a prescription for organizational behavior and a set of goals. Management decision making is therefore necessarily constrained by the limitations established I the plan.

Question: 4

Which one of the following reasons is not a significant reason for planning in an organization?

  1. Promoting coordination among operating units
  2. Forcing managers to consider expected future trends and conditions
  3. Developing basis for controlling operations
  4. Monitoring profitable operations


Answer: D

Explanation:

Monitoring profitable operations is not a significant reason for planning. Monitoring is a control function, whereas planning has a control purpose that precedes control in the planning-control cycle. Planning establishes standards against which is the control function compares preliminary or final results.

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Question: 2

Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarily excludes the

  1. Trends that will affect the entity’s markets
  2. Target product mix and production schedule to be maintained
  3. Forms of organizational structure that would best serve the entity
  4. Best ways to invest in research, design, production, distribution, marketing, and administrative activities


Answer: B

Explanation:

Strategic analysis is the process of long-range planning. It includes identifying organizational objectives, evaluating the strengths and weaknesses of the organization, such as market trends, changes the technology, international competition, and social change. The final step is to derive the best strategy for reaching the objectives. Setting the target product mix and production schedule for the current year is not a concern of strategic analysis because it is short-term activity.

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Question: 2

Strategy is a broad term that usually means the selection of overall objectives. Strategic analysis ordinarily excludes the

  1. Trends that will affect the entity’s markets
  2. Target product mix and production schedule to be maintained
  3. Forms of organizational structure that would best serve the entity
  4. Best ways to invest in research, design, production, distribution, marketing, and administrative activities


Answer: B

Explanation:

Strategic analysis is the process of long-range planning. It includes identifying organizational objectives, evaluating the strengths and weaknesses of the organization, such as market trends, changes the technology, international competition, and social change. The final step is to derive the best strategy for reaching the objectives. Setting the target product mix and production schedule for the current year is not a concern of strategic analysis because it is short-term activity.

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Question: 5

Certain phases of the planning process should be formalized for all of the following reasons expect that

  1. Informal plans and goals lack the necessary precision, understanding, and consistency.
  2. Formal plans can act as a constraint on the decision-making freedom of managers and supervisors
  3. Formalization requires the establishment and observance of deadlines for decision making and planning
  4. Formalization provides a logical basis for rational flexibility in planning


Answer: B

Explanation:

A formal plan is a prescription for organizational behavior and a set of goals. Management decision making is therefore necessarily constrained by the limitations established I the plan.

Question: 4

Which one of the following reasons is not a significant reason for planning in an organization?

  1. Promoting coordination among operating units
  2. Forcing managers to consider expected future trends and conditions
  3. Developing basis for controlling operations
  4. Monitoring profitable operations


Answer: D

Explanation:

Monitoring profitable operations is not a significant reason for planning. Monitoring is a control function, whereas planning has a control purpose that precedes control in the planning-control cycle. Planning establishes standards against which is the control function compares preliminary or final results.