MBA 620 Final Exam 2026 | All Questions and
Correct Answers | Graded A+ | Verified
Answers | Brand New Version!
Which of the following budgets needs to be established first in the
budgeting process?
a. The production budget
b. The cash budget
c. The budgeted income statement
d. The sales budget ---------CORRECT ANSWER-----------------d
A benefit of the participative approach to budgeting (relative to the
top-down approach) is:
a. In participative budgeting, lower level management has less input on
the budget.
b. Participative budgeting is quicker and easier to administer.
c. In participative budgeting, outside community members have more
input on the budget.
d. Participative budgeting increases managers' buy-in and motivation to
achieve budget goals. ---------CORRECT ANSWER-----------------d
,What is a flexible budget?
a. All the other answers
b. The master budget adjusted to the actual level of sales.
c. The budget most appropriate for use in evaluating performance of
production supervisors.
d. The budget used to calculate production variances (price and
quantity variances). ---------CORRECT ANSWER-----------------a
In a variance analysis, the 'standard quantity' or direct materials is:
a. The quantity of materials one would expect (based on the standards)
to be used for the actual level of sales.
b. The quantity of materials actually used in production.
c. The quantity of materials used to create the master budget (based on
the expected sales).
d. Established based on ideal standards, including no allowance for
waste or spoilage. ---------CORRECT ANSWER-----------------a
, Which of the following is the most likely explanation for an unfavorable
direct materials quantity variance?
a. They used higher quality direct materials, which reduced waste
(scrap).
b. The new purchasing agent was not as effective in negotiating low
prices.
c. Lack of training meant that employees made more mistakes than
expected.
d. The government levied new tariffs on the materials purchased. --------
-CORRECT ANSWER-----------------c
Future costs that differ among competing decision alternatives (a.k.a.,
differential or incremental costs) ---------CORRECT ANSWER-----------------
relevant costs
Revenues that differ when one alternative is selected over another. For
example, if a company is deciding whether to keep all customers
(Alternative 1) or drop certain less profitable customers (Alternative 2),
difference between total revenue for Alternative 1 and total revenue
for Alternative 2. ---------CORRECT ANSWER-----------------differential
revenues
Correct Answers | Graded A+ | Verified
Answers | Brand New Version!
Which of the following budgets needs to be established first in the
budgeting process?
a. The production budget
b. The cash budget
c. The budgeted income statement
d. The sales budget ---------CORRECT ANSWER-----------------d
A benefit of the participative approach to budgeting (relative to the
top-down approach) is:
a. In participative budgeting, lower level management has less input on
the budget.
b. Participative budgeting is quicker and easier to administer.
c. In participative budgeting, outside community members have more
input on the budget.
d. Participative budgeting increases managers' buy-in and motivation to
achieve budget goals. ---------CORRECT ANSWER-----------------d
,What is a flexible budget?
a. All the other answers
b. The master budget adjusted to the actual level of sales.
c. The budget most appropriate for use in evaluating performance of
production supervisors.
d. The budget used to calculate production variances (price and
quantity variances). ---------CORRECT ANSWER-----------------a
In a variance analysis, the 'standard quantity' or direct materials is:
a. The quantity of materials one would expect (based on the standards)
to be used for the actual level of sales.
b. The quantity of materials actually used in production.
c. The quantity of materials used to create the master budget (based on
the expected sales).
d. Established based on ideal standards, including no allowance for
waste or spoilage. ---------CORRECT ANSWER-----------------a
, Which of the following is the most likely explanation for an unfavorable
direct materials quantity variance?
a. They used higher quality direct materials, which reduced waste
(scrap).
b. The new purchasing agent was not as effective in negotiating low
prices.
c. Lack of training meant that employees made more mistakes than
expected.
d. The government levied new tariffs on the materials purchased. --------
-CORRECT ANSWER-----------------c
Future costs that differ among competing decision alternatives (a.k.a.,
differential or incremental costs) ---------CORRECT ANSWER-----------------
relevant costs
Revenues that differ when one alternative is selected over another. For
example, if a company is deciding whether to keep all customers
(Alternative 1) or drop certain less profitable customers (Alternative 2),
difference between total revenue for Alternative 1 and total revenue
for Alternative 2. ---------CORRECT ANSWER-----------------differential
revenues
