100% Free IMANET FMAA Practice Test Questions and Answers 2026

A specialty instrument manufacturer is in the process of establishing a cost system. The company produces machines that are unique and distinctive. These machines are produced when purchase requests are received from customers. Although some common parts and sub-assemblies are to be held in inventory, no finished goods inventory is maintained since each purchase request is for a customized specialty instrument. The type of cost accumulation system that would be best suited for this type of environment would be

Which one of the following is not an advantage of a participatory budgeting process?

A company has net sales of $4,000,000, operating income of $1,200,000, and net income of $1,000,000. Average total assets are $9,000,000 and average total equity is $7,000,000. What is the company’s return on equity (ROE) and return on assets (ROA)?

Mark Tian, a staff accountant, becomes aware of an off-balance sheet bank account where funds have been diverted with offsetting creditsapproved by his immediate supervisor. His immediate supervisor refuses to discuss it and suggests Tian forget about it. Which one of thefollowing should be Tian’s next course of action in this circumstance?

A budget developed by using budgeted prices and budgeted costs based on the actual output in the budget period is a(n)