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MBA 620 Final Exam Actual Exam Newest 2025/2026
Complete Questions And Correct Detailed Answers
(Verified Answers) |Brand New Version!!
Analyzing differences between standard costs (on the flexible budget)
and actual costs; identifies general causes by breaking cost components
into separate price and quantity - ANSWER-variance analysis
Companies using _____________ systems apply overhead to products
based on several activities, and therefore calculate a spending and
efficiency variance for each activity - ANSWER-activity-based costing
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 - ANSWER-d
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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. - 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). - 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.
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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. - ANSWER-a
Future costs that differ among competing decision alternatives (a.k.a.,
differential or incremental costs) - 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. - ANSWER-differential revenues
Costs that differ when one alternative is selected over another. For
example, if a company is deciding whether to make a product internally
(Alternative 1) or outsource production (Alternative 2), difference
between costs for Alternative 1 and Alternative 2 - ANSWER-
differential costs
Reviewing the differential revenues and costs for alternative courses of
action; this is used by management to evaluate different alternatives and
to select the best course of action - ANSWER-differential analysis
Means a company is deciding whether to make a product internally or
buy the product from an outside firm. Differential analysis helps
MBA 620 Final Exam Actual Exam Newest 2025/2026
Complete Questions And Correct Detailed Answers
(Verified Answers) |Brand New Version!!
Analyzing differences between standard costs (on the flexible budget)
and actual costs; identifies general causes by breaking cost components
into separate price and quantity - ANSWER-variance analysis
Companies using _____________ systems apply overhead to products
based on several activities, and therefore calculate a spending and
efficiency variance for each activity - ANSWER-activity-based costing
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 - ANSWER-d
,2|Page
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. - 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). - 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.
, 3|Page
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. - ANSWER-a
Future costs that differ among competing decision alternatives (a.k.a.,
differential or incremental costs) - 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. - ANSWER-differential revenues
Costs that differ when one alternative is selected over another. For
example, if a company is deciding whether to make a product internally
(Alternative 1) or outsource production (Alternative 2), difference
between costs for Alternative 1 and Alternative 2 - ANSWER-
differential costs
Reviewing the differential revenues and costs for alternative courses of
action; this is used by management to evaluate different alternatives and
to select the best course of action - ANSWER-differential analysis
Means a company is deciding whether to make a product internally or
buy the product from an outside firm. Differential analysis helps
