ACC 241 Exam #3 Question and
answers rated A+ 2025/2026
Which of the following alternatives reflects the proper order of preparing components of the master
budget?
1. Production budget
2. Sales budget
3. Direct materials budget - correct answer ✔a. 2, 3, 1
b. 1, 3, 2
*c. 2, 1, 3
d. 3, 1, 2
Which of the following is a potential disadvantage of participative budgeting? - correct answer ✔*a.
Managers may build slack into the budget
b. Managers are more likely to be motivated by budgets they helped to create
c. Managers should have more detailed knowledge for creating realistic budgets
d. None of the above
Dallas Company has an unfavorable materials price variance. Which of the following would be the least
likely reason for this variance? - correct answer ✔a. The company purchased a higher quality material
than was budgeted.
b. The company did not take advantage of purchase discounts.
* c. The company used more material than was budgeted for in each unit.
d. The company under budgeted the standard price for materials.
e. The company hired unemployable University of Arizona supply chain majors (students).
A > S - correct answer ✔Unfavorable
answers rated A+ 2025/2026
Which of the following alternatives reflects the proper order of preparing components of the master
budget?
1. Production budget
2. Sales budget
3. Direct materials budget - correct answer ✔a. 2, 3, 1
b. 1, 3, 2
*c. 2, 1, 3
d. 3, 1, 2
Which of the following is a potential disadvantage of participative budgeting? - correct answer ✔*a.
Managers may build slack into the budget
b. Managers are more likely to be motivated by budgets they helped to create
c. Managers should have more detailed knowledge for creating realistic budgets
d. None of the above
Dallas Company has an unfavorable materials price variance. Which of the following would be the least
likely reason for this variance? - correct answer ✔a. The company purchased a higher quality material
than was budgeted.
b. The company did not take advantage of purchase discounts.
* c. The company used more material than was budgeted for in each unit.
d. The company under budgeted the standard price for materials.
e. The company hired unemployable University of Arizona supply chain majors (students).
A > S - correct answer ✔Unfavorable
