Certified Management Accountant (CMA) Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

Question 1

A company prices using variable cost plus a markup that must, in aggregate, cover fixed costs and profit. Unit variable cost is $22 and the markup is 50% on variable cost. What is the price, and what must management remember?

$11.00; fixed costs are already included in variable cost $33.00; the markup is pure profit on every unit $44.00; price must double variable cost under this method $33.00; the markup must in total cover fixed costs and provide profit

Question 2

Processing further will increase revenue by $85,000, increase variable processing costs by $50,000, and require a $20,000 machine rental. What is the net effect of processing further?

$35,000 increase in profit $85,000 increase in profit $15,000 increase in profit $-15,000 decrease in profit

Question 3

A firm operates at full capacity. Regular units sell for $50 with variable cost $30. A special order would displace regular sales unit-for-unit. What is the minimum price for the special order, assuming its variable cost is also $30?

$30 per unit $20 per unit $80 per unit $50 per unit

Question 4

At sales of 8,000 units, Vale Company reports total contribution margin of $160,000 and operating income of $40,000. What is its degree of operating leverage at this volume?

0.25 2.00 4.00 5.00

Question 5

Harbor Inc. makes 20,000 brackets: direct materials $4, direct labor $3, variable overhead $2, avoidable fixed overhead $1 per unit, unavoidable fixed $3 per unit. Supplier price is $11. What should Harbor do on financial grounds?

Make, saving $1 per unit or $20,000 total Buy, saving $2 per unit or $40,000 total Make, saving $4 per unit or $80,000 total Buy, because $11 is less than the $13 full cost

Question 6

An export order for 8,000 units at $13 has variable manufacturing cost $9, export shipping $2 per unit, and no effect on domestic sales with idle capacity. What is the incremental profit?

$32,000 $104,000 $8,000 $16,000

Question 7

A company buys a part for $30. Making it would cost direct materials $10, direct labor $8, variable overhead $4, and require a supervisor earning $40,000 who would be laid off if buying continues, for 8,000 units. What is the relevant make cost per unit?

$22 per unit $27 per unit $30 per unit $35 per unit

Question 8

Market research shows customers will pay $120 for a new product. The company requires a $30 profit per unit. What is the target cost?

$150 $30 $90 $120

Question 9

Unit variable cost is $20, budgeted fixed costs are $200,000, and budgeted volume is 20,000 units. With a 20% markup on full cost, what is the cost-plus price?

$36.00 $24.00 $30.00 $40.00

Question 10

A product has a full cost of $40 per unit. The company applies a 25% markup on cost. What is the selling price?

$10.00 $53.33 $50.00 $65.00

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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