MBA 620 ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉Which of the following would describe the planning function of
managers?
a. Measuring the performance of managers.
b. Assessing whether the company is achieving its goals.
c. Communicating the goals of managers to the employees.
d. Evaluating how well plans were implemented. Answer:
Communicating the goals of managers to the employees
◉Which of the following would definitely be an example of a
variable cost for Bikes Unlimited (a company that produces and sells
mountain bikes)?
a. Rent on the production facility.
b. Depreciation of production equipment.
c. The cost of pedals bought from a supplier.
d. The utilities cost (electricity). Answer: The cost of pedals bought
from a supplier
, ◉Why do companies use cost estimation tools?
a. To record product costs on the income statement.
b. To make cost projections based on the expected level of sales.
c. To allocate overhead costs to products, using a predetermined
overhead rate.
d. To separate product costs from period costs for the budgeting
process. Answer: To make cost projections based on the expected
level of sales
◉Which cost estimation method will provide the most accurate
(mathematically) cost equation?
a. Scattergraph method
b. Regression analysis method
c. High-low method
d. Account analysis method Answer: Regression analysis method
◉All of the following are good reasons why managers allocate
overhead costs to products EXCEPT:
a. Because it is required by U.S. Generally Accepted Accounting
Principles for external financial reporting.
QUESTIONS WITH SOLUTIONS GRADED A+
◉Which of the following would describe the planning function of
managers?
a. Measuring the performance of managers.
b. Assessing whether the company is achieving its goals.
c. Communicating the goals of managers to the employees.
d. Evaluating how well plans were implemented. Answer:
Communicating the goals of managers to the employees
◉Which of the following would definitely be an example of a
variable cost for Bikes Unlimited (a company that produces and sells
mountain bikes)?
a. Rent on the production facility.
b. Depreciation of production equipment.
c. The cost of pedals bought from a supplier.
d. The utilities cost (electricity). Answer: The cost of pedals bought
from a supplier
, ◉Why do companies use cost estimation tools?
a. To record product costs on the income statement.
b. To make cost projections based on the expected level of sales.
c. To allocate overhead costs to products, using a predetermined
overhead rate.
d. To separate product costs from period costs for the budgeting
process. Answer: To make cost projections based on the expected
level of sales
◉Which cost estimation method will provide the most accurate
(mathematically) cost equation?
a. Scattergraph method
b. Regression analysis method
c. High-low method
d. Account analysis method Answer: Regression analysis method
◉All of the following are good reasons why managers allocate
overhead costs to products EXCEPT:
a. Because it is required by U.S. Generally Accepted Accounting
Principles for external financial reporting.
