ETS MFT MBA COMPREHENSIVE EXAM 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ After an extensive recruitment process to select
well-qualified individuals, a large percent of
a company's new hires resigned within the first
month of the job. Which of the following is the
most likely explanation for this situation?
(A) The training process to prepare the new hires
for their assigned tasks was inadequate.
(B) The health benefits provided by the company
were not competitive with those of the rest
of the industry.
(C) The starting salary for the new hires was not
competitive with that of the rest of the
industry.
(D) The new hires lacked the basic skills required
to learn the job. Answer:
◉ Prosco Ltd. employs a process cost system.
, Inspection of units occurs at the 50 percent mark.
Defective units are then removed from the process,
and their cost ($4.50) is absorbed by the good units.
Prosco has recently been approached by a firm
wishing to buy the defective units for a special use.
The firm would require Prosco to modify the
defective units at a unit cost of $2.00. If Prosco
sells the defective units to the firm for $5.00 each,
how would Prosco's reported income be affected?
(A) It would decrease by $4.50 per unit sold.
(B) It would decrease by $1.50 per unit sold.
(C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold. Answer:
◉ Some companies have little, if any, net income or
earnings, yet they seem to have all the money they
need for capital expenditures. Which of the
following best explains how such companies
operate?
(A) They have good cash flows.
(B) They lease capital equipment that does not
show up on balance sheets.
QUESTIONS WITH ANSWERS GRADED A+
◉ After an extensive recruitment process to select
well-qualified individuals, a large percent of
a company's new hires resigned within the first
month of the job. Which of the following is the
most likely explanation for this situation?
(A) The training process to prepare the new hires
for their assigned tasks was inadequate.
(B) The health benefits provided by the company
were not competitive with those of the rest
of the industry.
(C) The starting salary for the new hires was not
competitive with that of the rest of the
industry.
(D) The new hires lacked the basic skills required
to learn the job. Answer:
◉ Prosco Ltd. employs a process cost system.
, Inspection of units occurs at the 50 percent mark.
Defective units are then removed from the process,
and their cost ($4.50) is absorbed by the good units.
Prosco has recently been approached by a firm
wishing to buy the defective units for a special use.
The firm would require Prosco to modify the
defective units at a unit cost of $2.00. If Prosco
sells the defective units to the firm for $5.00 each,
how would Prosco's reported income be affected?
(A) It would decrease by $4.50 per unit sold.
(B) It would decrease by $1.50 per unit sold.
(C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold. Answer:
◉ Some companies have little, if any, net income or
earnings, yet they seem to have all the money they
need for capital expenditures. Which of the
following best explains how such companies
operate?
(A) They have good cash flows.
(B) They lease capital equipment that does not
show up on balance sheets.
