Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IMANET Exam CMA Topic 1 Question 76 Discussion

Actual exam question for IMANET's CMA exam
Question #: 76
Topic #: 1
[All CMA Questions]

Which of the following is a factor in the choice of strategy in a declining industry?

Show Suggested Answer Hide Answer
Suggested Answer: A

Since the salvage company's offer is for more than the book value of the equipment, an accrual- basis gain would result A loss on disposal of old equipment results in a tax benefit, since the loss reduces accrual basis income. Therefore, a gain. which increases accrual-basis income, results in a tax detriment, and the reduction to the net initial investment will be less than if the salvage company's offer had resulted in a loss.


by Stephaine at Oct 17, 2023, 09:39 PM

Limited Time Offer

25%

Off

Get Premium CMA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Selma
18 days ago
Hmm, I'm going to have to say D. Mobility burners sound like they'd be a real 'pain point' in a declining industry. Haha, get it? Pain point? Mobility burners? Ah, never mind.
upvoted 0 times
...
Shaniqua
21 days ago
I'm going to go with A. The likelihood of an industry producing profits is crucial in deciding how to approach a declining industry. Gotta maximize those dwindling returns!
upvoted 0 times
...
Candra
22 days ago
I'm leaning towards C. Externalities like government regulations or market trends can really impact the strategy you need to adopt in a declining industry.
upvoted 0 times
...
Tommy
1 months ago
I think D is the correct answer. Mobility burners are a key factor in a declining industry, like high switching costs for customers.
upvoted 0 times
German
9 days ago
I think A is also crucial, as the likelihood of an industry producing profits can impact strategy decisions.
upvoted 0 times
...
Shawnda
23 days ago
I agree, D is definitely an important factor to consider in a declining industry.
upvoted 0 times
...
...
Svetlana
2 months ago
Hmm, I'm pretty sure it's B. The nature of entrants to an industry definitely plays a role in the strategy you choose for a declining industry.
upvoted 0 times
Jody
9 days ago
I think it's also important to consider the likelihood of an industry producing profits.
upvoted 0 times
...
Magnolia
15 days ago
I agree, the nature of entrants can definitely impact the strategy chosen.
upvoted 0 times
...
Ligia
16 days ago
I think it's also important to consider the likelihood of an industry producing profits.
upvoted 0 times
...
Ira
1 months ago
I agree, the nature of entrants can definitely impact the strategy chosen.
upvoted 0 times
...
...
Eveline
2 months ago
But what about the nature of entrants? That could also impact strategy decisions.
upvoted 0 times
...
Leonie
2 months ago
I agree with Serita, profitability is a key factor in strategy choice.
upvoted 0 times
...
Serita
2 months ago
I think the likelihood of an industry producing profits is important.
upvoted 0 times
...

Save Cancel