Free IMA CMA Part 2 (Strategic Financial Management) Business Decision Analysis Practice Questions
Decision Analysis on CMA Part 2 covers cost-volume-profit analysis and relevant costing for short-term decisions (make-or-buy, special orders, drop-or-keep, sell-or-process-further), pricing methods, and marginal analysis. This is the most heavily weighted Part 2 section at 25%.
147 questions57 easy60 medium30 hard2026 syllabus
Sample Questions
Question 1
Easy
Larkspur Inc. sells a single product for $60 per unit with variable cost of $36 per unit. What is the contribution margin ratio?
🎉
Correct Answer: A
Solution
A is correct. Contribution margin per unit = $60 − $36 = $24. Contribution margin ratio = $24 ÷ $60 = 0.40, or 40%.
Question 2
Medium
Glenbrook Industries reported sales of $800,000, fixed costs of $240,000, and a contribution margin ratio of 40%. What is Glenbrook's margin of safety in dollar terms?
🎉
Correct Answer: C
Solution
C is correct. Breakeven sales = Fixed costs / CM ratio =0.40240,000=600,000. Margin of safety = Actual sales − Breakeven sales: 800,000−600,000=200,000
Question 3
Hard
Linwood Components is launching Product Z. Marketing projects annual sales of 20,000 units at $60 per unit. Linwood requires a 15% return on the $400,000 investment in the product line. Engineering currently estimates the unit cost at $62. Using target costing, by how much must Linwood reduce its per-unit cost to achieve the required return?
🎉
Correct Answer: C
Solution
C is correct. Required profit =0.15×$400,000=$60,000. Total target revenue =20,000×$60=$1,200,000. Allowed total cost =$1,200,000−$60,000=$1,140,000. Target unit cost =20,000$1,140,000=$57. Required reduction =$62−$57=$5.
FreeFellow was built by Jeffrey Ting, a credentialed actuary and CFA charterholder who passed thirteen of the hardest exams in finance on the first attempt, and paid four-figure prep fees for every one. The learning itself was always free. The price was a moat.
So he started writing his own questions, then lessons, then mock exams, until it grew into a full prep platform covering 35 finance credentials with more than 40,000 original practice questions. The name says exactly what it is: the question bank is free, and Fellow is what you become once you pass.
01
Cost shouldn't decide who gets in.
The exam is a fair gate. A four-figure prep course is not. FreeFellow takes the second gate down, so the exam is the only one left.
02
Free should mean free.
No trial clock, no email gate, no credit card. The question bank, worked solutions, lessons, and readiness score stay free, and they are enough to pass.
03
Built by someone who sat where you sit.
He paid for the big-name courses, found nothing he respected, and built the prep he wished had existed. Not a marketing team that has never sat an exam.
