IMA CMA-Financial-Planning-Performance-and-Analytics 問題集

質問 1：
identity and explain one benefit and one limitation of outsourcing most of me payroll-related work to an outside payroll service provider.
Essay
Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (¥ in millions).

ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.
正解：
See the Answer below in Explanation details.
Explanation
One of ihe advantage of the outsourcing is that the company management would have enough time to focus on its key strategic issues rather that payroll processing The downside of the outsourcing is confidentiality issue which might arise as key information about payroll would he shared with the outsource service provider.

質問 2：
Discuss Whitney's arguments for allocating more capital funds to the Airline Catering division.
Essay
Food Depot Ltd (FDD is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants FDL has been profitable m recent years and has a very strong cash position FDL's newest division. Food-To-Go. is an online meal ordering and delivery platform acquired by FDL two years ago.
In 20X7. sales for the entire company were SI billion, with 50% of the business coming from the Airline Catering division. FDL is the country's leading airline catering services provider and controls 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
The Food-To-Go division only contributed 5% of FDL's total sales in 20X7 and is far behind in competing for market share of the online meal ordering and deliver, industry. It is estimated that Food-To-Go's sales were only 20% of the industry leader's sales However, the outlook for the online meal ordering and delivery services industry is bright. The compound annual growth rate of the industry since it started three years ago was 50%. It is estimated the rapid growth of the industry will continue in the foreseeable future.
The costs of shared corporate services are allocated based on each division s revenue FDL usually caps its capital expenditure budget to 4% of budgeted sales revenue In a recent capital budget coordination meeting.
Smith Whitney, the head of the Airline Catering division. complained that his division is underfunded on capital projects . The budgeted capital expenditure had been much less than 4 % of the division's budgeted sales in the past three years He argued that his division is the company's best-performing division, and it needs more funds to maintain its market share m the industry Whitney wants to reduce the capital expenditure budget for Food-To-Go and reallocate those funds to his division.
Susan Wiley, the bead of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company Wiley argues that her division had the highest ROI in 20X7. and it deserves more capital funding FDL's required rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follows (in $ millions).

正解：
See the Answer below in Explanation details.
Explanation
Unless Whitney can't justify that the returns on the funds allocated to the division will create more returns as compared to if it's diverted to the food to go division, allocating the funds to the Whitney's division will not be justifiable and efficient use of resources of the company though the residual income or return on investment will be higher however, future prospects are full which needs to be factored.

質問 3：
In trying to predict the returns on the stock market, a novice investor collected data on the sightings of sperm whales off the eastern coast of North America and the performance of the Dow Jones Industrial Average (the Dow) A regression of the two variables resulted in a correlation coefficient of -0.90 or a coefficient of determination (r2) of 81%. The sightings of whales seemed to be negatively correlated with the performance of the Dow. The novice investor should
A. conclude that this is an example of spurious correlation
B. conclude that there is a cause-and-effect relationship between the two variables
C. track the sighting of sperm whales and buy the Dow when sightings are low: conclude that sperm whale sightings are a strong indicator of poor performance of the Dow
D. conclude that the poor performance of the Dow leads to high sightings of sperm whales
正解：A

質問 4：
Which one of the following is not considered to be a Benefit of participative budgeting?
A. Budget estimates are prepared by those in direct contact with various activities
B. Managers are held responsible for reaching their goals and cannot shift responsibility by blaming the unrealistic goals demanded by the budget.
C. individuals at all organizational levels are recognized as being pan of the team resulting in greater support of the budget
D. When managers set the final targets for the budget, it reduces top management's concerns about the profitability of operations
正解：D

質問 5：
A new restaurant chain has installed a new restaurant management system. However many employees have complained that the restaurant management system is not user-friendly and has caused many customer service issues. Which one of the following may help to improve system performance?
A. CVP analysts
B. Sensitivity analysis
C. Business process analysis
D. Exploratory data analysis
正解：C

質問 6：
The purchasing team manager of a large car retailer is responsible for purchasing cars for the Pest price and managing his team's payroll costs. Once the car is purchased the sales team manager is responsible for setting the prices. Which one of the following statements best describes the team s responsibilities'?
A. The purchasing team is a cost center, and the sales team is an investment center.
B. The purchasing team is an investment center and the sales team is a revenue center
C. The purchasing team is an investment center and the sales team is a profit center
D. The purchasing team is a cost center, and the sales team Is a revenue center
正解：D

質問 7：
What is the best type of accounting system control to help prevent improper manipulation of data and to ensure the continued, satisfactory use of the hardware and software?
A. Throughput controls such as a hash total
B. Output controls such as a maximum check
C. input controls such as a limit check
D. Processing controls such as limiting access
正解：C

質問 8：
Huaxia Manufacturing's standard cost card for product GH1 includes the following:

During the month of June, Huaxia produced 12,300 units. The purchasing department purchased 30,400 yards of fabric for a total cost of $100,320. The production department used 25.300 yards of fabric in June. What is Huaxia's direct materials price variance for the month of June?
A. $11,770 unfavorable
B. $2,450 unfavorable
C. $6,080 favorable
D. $14,220 unfavorable
正解：C

質問 9：
Which one of the following represents a temporary difference under U.S GAAP?
A. interest received in municipal bonds
B. Fines and expenses resulting from violation of the law
C. Percentage depletion of natural resources
D. Accrued liabilities
正解：D