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NEW QUESTION 45
A risk with a high frequency of occurrence but with a low impact, is best managed by which one of the following risk response strategies?

• A. Risk transfer
• B. Risk reduction
• C. Risk acceptance
• D. Risk avoidance

Answer: B

NEW QUESTION 46
Custom Ceramics produces two hand-painted items a large bowl and a large platter. Relevant information for each of these items is shown below

• A. The company should produce only platters because the contribution margin per painting hour is higher
• B. The company should produce only platters because the variable cost per platter is lower
• C. The company should produce only bowls because the contribution margin per bowl is higher.
• D. The company should produce only bowls because the sales price per Bowl is higher

Answer: A

NEW QUESTION 47
A manufacturing company is reviewing the budget for one of its component parts for next year based on the need for 5.000 units.

The company receives a bid from a supplier offering lo provide (lie needed component for a price of $115 per unit The company is deciding whether to make or buy the component What decision should the firm make if (1) the fixed facilities costs can be avoided or (2) if the fixed facilities costs cannot be avoided If purchasing from the supplier?

• A. (1) Make; (2) Buy
• B. (1) Buy; (2) Buy
• C. (1) Buy; (2) Make
• D. (1) Make; (2) Make

Answer: D

NEW QUESTION 48
If a CMA is asked to conduct a financial assessment of a company owned by a close relative, what would be the proper response under the credibility standard of the IMA Statement of Ethical Professional Practice?

• A. Keep information confidential except when authorized By the relative
• B. Communicate the existence of a constraint that might preclude responsible judgment
• C. Provide an assessment that is timely and accurate despite the personal relationship
• D. Advise all parties of a potential conflict of interest

Answer: D

NEW QUESTION 49
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