US CMA Part 1 style Integrated Case-Based Question that hits all those heavy topics. New Sept 2026 exam has 3-4 mini-cases, 2 hrs, 50% weight. So here’s a single mini-case covering 15+ concepts
*CASE-BASED QUESTION – “TechNova Electronics Ltd.”*
*Time: 35 min | 25 marks*
*Scenario:*
TechNova manufactures IoT sensors. FY 2026 data below. You are the CMA. CFO asks for analysis.
*Section A – Inventory & Inflation*
1. Opening inventory: 10,000 units @ $12 _FIFO_. During year: purchased 30,000 units @ $15. Sold 32,000 units. Inflation 8% p.a.
*Q1:* Calculate COGS under FIFO vs LIFO. What is impairment loss if NRV of ending inventory = $11/unit?
*Q2:* Explain inflation effect on COGS, EPS, and taxes under FIFO vs LIFO.
*Section B – Leases & Commitments*
2. Jan 1, 2026: Signed 3-yr lease for warehouse. Annual payment $60,000, 6% IBR. TechNova elects short-term exemption but lease is 3 yrs.
*Q3:* Is this an operating or finance lease under ASC 842? Journal entry Jan 1.
3. Dec 2026: Signed purchase commitment for chips at $500,000, delivery Mar 2027. Market price fell to $420,000 by 31 Dec.
*Q4:* Journal entry for loss contingency? Warranty provision at year-end = $80,000, 70% likely to be paid.
*Section C – Budgeting & Variances*
4. Production data: Budget 50,000 units, Actual 48,000 units.
Budget OH: Fixed $240,000, Variable $6/unit. Actual OH: Fixed $250,000, Variable $300,000.
Actual hours: 95,000; Standard hours for actual output: 2 hrs/unit.
*Q5:* Calculate: a) Under/overapplied OH, b) Variable OH efficiency variance, c) Fixed OH spending variance, d) 3-way variance analysis.
5. Raw material: Budget cost $4/unit, Actual 49,000 units used @ $4.20.
*Q6:* Material efficiency variance? Is this favorable?
*Section D – Performance & Strategy*
6. Division A: Operating income $400,000, Avg assets $2M, Required return 15%. Division B: $300,000 income, $1.5M assets.
*Q7:* Calculate ROI & RI for both. Which division performs better? What is a “responsibility center”?
7. TechNova uses Balanced Scorecard.
*Q8:* Give 1 Critical Success Factor + 1 KPI for each BSC perspective.
*Section E – Cash & Reporting*
8. Q4 Sales $1.2M. 60% collected same quarter, 30% next, 10% uncollectible. AP terms: 50% paid same month, 50% next.
*Q9:* Prepare Q4 cash collection for cash budget.
9. TechNova owns 80% of Subsidiary S. During year sold goods to S for $200,000, cost $140,000. 25% still in S’s ending inventory.
*Q10:* What intercompany profit to eliminate? Journal entry.
Call Prof. Mahaley 9773464206 for class schedule, or drop your doubt here and I’ll solve it CMA-style.
