1|Page
MBA 620 FINAL EXAM LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
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
, 3|Page
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. - 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.
MBA 620 FINAL EXAM LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
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
, 3|Page
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. - 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.
