IMANET CMA Exam - Topic 4 Question 70 Discussion

Actual exam question for IMANET's CMA exam

Question #: 70
Topic #: 4

[All CMA Questions]

What is a challenge that the long-term aspect of capital budgeting presents to the management accountant?

AActivity can be tracked for a single accounting period.

BCapital projects affect multiple accounting periods.

CThe flexibility of the capital budgeting decision.

DFreedom of the organization's financial planning.

Show Suggested Answer

Suggested Answer: B

Capital budgeting is the process of planning and controlling investments for long-tern, projects It is this long-term aspect of capital budgeting that presents the management accountant with specific challenges. Most financial and management accounting topics concern tracking and reporting activity for a single accounting or reporting cycle, such as one month or one year, By their nature, capital projects affect multiple accounting periods and will constrain the organization's financial planning well into the future. Once made, capital budgeting deacons tend to be relatively inflexible.

by Kiley at May 29, 2023, 06:42 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Loreta

3 months ago

Yeah, tracking over time can get messy for sure!

upvoted 0 times

...

Vivan

3 months ago

Wait, are we really saying freedom in financial planning is a challenge?

upvoted 0 times

...

Tracie

4 months ago

I’m not so sure about that, flexibility is also a big deal.

upvoted 0 times

...

Rebecka

4 months ago

Totally agree, B is the right choice!

upvoted 0 times

...

Nikita

4 months ago

Capital projects definitely span multiple periods.

upvoted 0 times

...

Selma

4 months ago

I'm a bit uncertain about the right answer, but I feel like the long-term nature of these projects really complicates financial planning.

upvoted 0 times

...

Desirae

4 months ago

I practiced a question similar to this, and I think the key issue is that capital projects affect multiple accounting periods, which complicates the analysis.

upvoted 0 times

...

Jolene

5 months ago

I think the flexibility of capital budgeting decisions could be a challenge, but I'm not entirely sure how that ties into long-term planning.

upvoted 0 times

...

Nadine

5 months ago

I remember discussing how capital projects span multiple periods, which makes it hard to predict future cash flows accurately.

upvoted 0 times

...

Breana

5 months ago

This question seems straightforward, I think the answer is Connection Reputation Filtering since it specifically mentions using sensor information from Talos.

upvoted 0 times

...

Gilbert

5 months ago

I'm pretty sure the ps --ef command is from System V, so I'll go with B.

upvoted 0 times

...

Elise

5 months ago

I'm a little confused by the options here. I'm not sure if a PATH Error message would be the right approach for a session timeout. Let me think this through step-by-step to make sure I understand the right solution.

upvoted 0 times

...