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IMANET CMA Exam Sample Questions

Question: 3

Strategic planning, as practiced by most modem organizations, includes all of the following expect

  1. Top-level management predication
  2. A long-term focus
  3. Strategies that will help in achieving long-range goals
  4. Analysis of the current month’s actual variances from budget


Answer: D

Explanation:

Strategic planning is the process of setting overall organizational objectives and goals. It is a long-term process aimed at charting the future course of the organization. Strategic planning is based on assessing risk levels, evaluating the strengths and weaknesses of the organization, and forecasting the future direction an influences of factors relevant to the organization such as market trends, changes in technology, international competition, and social change. Analysis of the current month’s budget variances is not an aspect of strategic planning.

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: 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: 3

Strategic planning, as practiced by most modem organizations, includes all of the following expect

  1. Top-level management predication
  2. A long-term focus
  3. Strategies that will help in achieving long-range goals
  4. Analysis of the current month’s actual variances from budget


Answer: D

Explanation:

Strategic planning is the process of setting overall organizational objectives and goals. It is a long-term process aimed at charting the future course of the organization. Strategic planning is based on assessing risk levels, evaluating the strengths and weaknesses of the organization, and forecasting the future direction an influences of factors relevant to the organization such as market trends, changes in technology, international competition, and social change. Analysis of the current month’s budget variances is not an aspect of strategic planning.

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.