1|Page
MBA 620 FINAL EXAM LATEST 2026-2027 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
Cannot be traced directly to a product line, and are assigned to
product lines using an allocation process. These costs are
typically not differential costs since they are allocated to
remaining products if a product line is dropped - ANSWER-
allocated fixed costs
Managers often use ________ as a determining factor for
deciding whether to keep or drop customers and products -
ANSWER-profit
For product line decisions, _______ and _______ are assigned to
individual product lines. For customer decisions, both are
assigned to individual customers. - ANSWER-revenues and costs
Is used for both product line and customer decisions to asses the
profitability of various alternatives - ANSWER-contribution margin
income statement
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What two assumptions must be considered when evaluating
special order scenarios? - ANSWER-capacity and pricing
Acquiring or maintaining fixed assets that will be used for more
than a year such as buildings and equipment - ANSWER-capital
expenditures
Deciding which long-term investments to make - ANSWER-capital
budgeting
Decisions involve using company funds to invest in long-term
assets such as production facilities and equipment; these
decisions typically involve projects that affect cash flows of the
company for many years - ANSWER-capital budgeting decisions
Describes the value of future cash flows (both in and out) in
today's dollars - ANSWER-present value
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Three steps required to evaluate investments using the net
present value are:
1. Identify the amount and timing of the _________ _________
required over the life of the investment
2. Establish an appropriate interest rate to be used for evaluating
the investment, called the _________ ___ _________
3. Calculate and evaluate the net present value of the investment.
- ANSWER-cash flows, rate of return
Is the weighted average costs associated with debt and equity
used to fund long-term investments - ANSWER-cost of capital
Is the rate required to get an NPV of zero for a series of cash
flows; represents the time-adjusted rate of return for the
investment being considered - ANSWER-internal rate of return
(IRR)
States that if the IRR is greater than or equal to the company's
required rate of return (recall that this is often called the hurdle
MBA 620 FINAL EXAM LATEST 2026-2027 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
Cannot be traced directly to a product line, and are assigned to
product lines using an allocation process. These costs are
typically not differential costs since they are allocated to
remaining products if a product line is dropped - ANSWER-
allocated fixed costs
Managers often use ________ as a determining factor for
deciding whether to keep or drop customers and products -
ANSWER-profit
For product line decisions, _______ and _______ are assigned to
individual product lines. For customer decisions, both are
assigned to individual customers. - ANSWER-revenues and costs
Is used for both product line and customer decisions to asses the
profitability of various alternatives - ANSWER-contribution margin
income statement
,2|Page
What two assumptions must be considered when evaluating
special order scenarios? - ANSWER-capacity and pricing
Acquiring or maintaining fixed assets that will be used for more
than a year such as buildings and equipment - ANSWER-capital
expenditures
Deciding which long-term investments to make - ANSWER-capital
budgeting
Decisions involve using company funds to invest in long-term
assets such as production facilities and equipment; these
decisions typically involve projects that affect cash flows of the
company for many years - ANSWER-capital budgeting decisions
Describes the value of future cash flows (both in and out) in
today's dollars - ANSWER-present value
, 3|Page
Three steps required to evaluate investments using the net
present value are:
1. Identify the amount and timing of the _________ _________
required over the life of the investment
2. Establish an appropriate interest rate to be used for evaluating
the investment, called the _________ ___ _________
3. Calculate and evaluate the net present value of the investment.
- ANSWER-cash flows, rate of return
Is the weighted average costs associated with debt and equity
used to fund long-term investments - ANSWER-cost of capital
Is the rate required to get an NPV of zero for a series of cash
flows; represents the time-adjusted rate of return for the
investment being considered - ANSWER-internal rate of return
(IRR)
States that if the IRR is greater than or equal to the company's
required rate of return (recall that this is often called the hurdle
