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Updated: Jun 01, 2026

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IMA CMA Part 2: Strategic Financial Management Sample Questions:

1. Which one or the following costs Is a variable product cost?

A) Promotional materials distributed to raise brand awareness
B) Payroll taxes based on the hourly wages of plant personnel
C) Office rent in a temporary staffing company
D) Plant manager s salary for a computer chip manufacturer


2. A corporation shows the following on its financial statements (in millions).

The corporation has a financial leverage ratio of

A) 3.60
B) 0.50
C) 0.06
D) 2.00


3. Which one of the following statements regarding portfolio diversification is not correct?

A) A well diversified portfolio can minimize unsystematic risk
B) A well diversified portfolio can eliminate systematic risk.
C) A well diversified portfolio should include individual stock investments having a balance of positive and negative betas.
D) The standard deviation of a well diversified portfolio's percentage returns should be approximately equal to the standard deviation of the entire stock market's percentage returns.


4. When evaluating a capital Budgeting proposal, an advantage of using the payback method is that Bits process

A) objectively determines if the proposal should be accepted or rejected.
B) assesses the liquidity of the project.
C) incorporates all of the project's cash inflows and outflows
D) considers the time value of money.


5. Javier makes hand-looted learner dog collars. The materials cost $10 per collar and the collars are sold for $50 each. Javier sells me collars at a local farmer's market mat charges S100 per month for space rental if Javier's income tax rate is 30%, how many collars must Javier sell each year to earn $1,000 net income?

A) 66
B) 53
C) 29
D) 263


Solutions:

Question # 1
Answer: B
Question # 2
Answer: B
Question # 3
Answer: B
Question # 4
Answer: B
Question # 5
Answer: A

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