CMA Exam Practice Questions — Including for the New Exam!


To provide candidates with a brief view of some of the types of questions on the CMA® (Certified Management Accountant) exam, below are five questions, with correct answers and explanations for each. Note that several of the questions for Part 1 below reflect the content from the new exam, which will be offered for the first time in September 2024.

You can also check out these additional practice multiple-choice and essay questions (in PDF format) and try the interactive practice quiz, available on the IMA® (Institute of Management Accountants) website, to test your skills and expertise.


CMA Exam Part 1:

1.   Company X has sold goods to its wholly owned subsidiary Company Y. How should the intracompany transactions be treated when preparing consolidated financial statements under U.S. GAAP?

  1. Reported in the notes of the financial statements.
  2. Highlighted as contingent liabilities.
  3. Eliminated to avoid double counting.
  4. Consolidated using the equity method.
  • Correct answer c. By eliminating all intracompany transactions, the business can generate a consolidated financial statement for all its constituent units and subsidiaries that reflects its true profits and losses as a result of business conducted (only) with outside entities or customers. a, b, and d are not correct methods under GAAP.

2.    What should be the primary objective of data management within an organization?

  1. The process of storing data in cloud-based servers.
  2. The technological infrastructure that handles data.
  3. The executive decisions regarding data monetization.
  4. The oversight of data from creation to disposal.
  • Correct answer d. It is the management of the flow of data from creation and initial storage to the time when the data become obsolete and are deleted.

3.    What type of dependent variable is logistic regression used to predict?

  1. Binary.
  2. Continuous.
  3. Ratio.
  4. Time series data.
  • Correct answer a. Logistic regression is used to predict a binary outcome variable, which can take on two possible values (e.g., 0 or 1, true or false, yes or no). It estimates the probability that a given input point belongs to a certain class.


CMA Exam Part 2:

4.    A company plans to add a new product that would affect its indirect labor costs in two ways. First, the production manager of an existing product would serve as manager of the new product. Her current assistant manager would be promoted and assume her previous position. Second, the existing maintenance staff would provide facility and machine maintenance that would require 30 hours of labor each month, but no increase in their total weekly hours worked. The company’s production managers earn $60,000 annually, assistant production managers are paid $50,000 each year, and maintenance employees earn $20 per hour. No additional hiring is planned. The annual relevant indirect labor costs for adding the new product would total

  1. $67,200.
  2. $60,600.
  3. $10,000
  4. $7,200
  • Correct answer c.
    60,000 – 50,000 = raise given to assistant manager, no new maintenance employees are needed, and the current production manager will make the same salary, so these payments would not differ between the alternatives.

5.    When implementing a continuous enterprise risk management process, what step should an organization take first?

  1. Control previously identified risks.
  2. Establish a risk management budget.
  3. Establish its strategy and objectives.
  4. Monitor and communicate results.
  • Correct answer c. ERM is closely intertwined with a company’s strategy and objectives.