CMA Accounting Exam Questions & Answers 2026 (11–20)

Question 1

The document that summarizes long-term goals and the strategy to achieve them, guiding the annual budget, is the:

TheoryPractice · Accepted Answer

Strategic (long-range) plan. Budgeting flows from strategy: the strategic plan sets multi-year objectives, which the annual operating budget then operationalizes.

Question 2

A manufacturing overhead budget shows budgeted variable overhead of $4 per direct labor hour and fixed overhead of $50,000. At 10,000 direct labor hours, total budgeted overhead is:

TheoryPractice · Accepted Answer

$90,000. Total overhead = Variable (10,000 x $4 = $40,000) + Fixed ($50,000) = $90,000.

Question 3

In regression analysis used for forecasting costs, the coefficient of determination (R-squared) measures:

TheoryPractice · Accepted Answer

The proportion of variation in the dependent variable explained by the independent variable. R-squared indicates goodness of fit: the fraction of variability in the cost (dependent variable) explained by the activity driver (independent variable).

Question 4

Under an 80% learning curve, the first unit takes 100 hours. The cumulative average time per unit for 2 units is:

TheoryPractice · Accepted Answer

80 hours. With an 80% cumulative-average learning curve, doubling output multiplies cumulative average time by 0.80: 100 x 0.80 = 80 hours per unit.

Question 5

Using the 80% learning curve where the cumulative average for 2 units is 80 hours, the total time for the first 4 units is:

TheoryPractice · Accepted Answer

256 hours. At 4 units, cumulative average = 80 x 0.80 = 64 hours. Total = 64 x 4 = 256 hours.

Question 6

A cost that remains constant in total but varies inversely per unit as volume changes is a:

TheoryPractice · Accepted Answer

Fixed cost. Fixed costs stay constant in total over the relevant range, so per-unit fixed cost falls as volume rises and rises as volume falls.

Question 7

Using the high-low method: at 8,000 units cost is $34,000; at 4,000 units cost is $22,000. The variable cost per unit is:

TheoryPractice · Accepted Answer

$3.00. VC per unit = (34,000 - 22,000) / (8,000 - 4,000) = 12,000 / 4,000 = $3.00.

Question 8

Continuing the prior data (VC = $3/unit; at 4,000 units cost = $22,000), the estimated fixed cost is:

TheoryPractice · Accepted Answer

$10,000. Fixed cost = Total cost - Variable cost = 22,000 - (4,000 x $3) = 22,000 - 12,000 = $10,000.

Question 9

Pro forma financial statements in a master budget are:

TheoryPractice · Accepted Answer

Forecasted (projected) statements based on budget assumptions. Pro forma statements project the expected income statement, balance sheet, and cash flows resulting from the budget's planned activities.

Question 10

Sensitivity analysis in budgeting is used to:

TheoryPractice · Accepted Answer

Examine how changes in key assumptions affect budgeted outcomes. Sensitivity (what-if) analysis tests how the budget responds to changes in assumptions such as sales volume, price, or cost, helping assess risk.

CMA Accounting Exam Questions & Answers 2026 (11–20)

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