MBA 601 FINAL EXAM 2026 UPDATED QUESTIONS AND
ANSWERS GRADED A+
✔✔Theta, Inc., a manufacturing company, has two major activities that drive the selling
costs of the firm, namely commission paid to sales agents on the number of sales
initiated and number of dispatches made. In the case of two explanatory variables, the
linear equation is expanded to include the additional variable:Y = F + V1X1 + V2X2,
whereX1 = Number of sales initiated by representativesX2 = Number of dispatches
madeF = Fixed cost componentY = Total selling costsWhich of the following is a
dependent component in the equation above?
a.Fixed cost component
b.Number of dispatches made
c.Total selling costs
d.Number of sales initiated by representatives - ✔✔c.Total selling costs
✔✔Which of the following statements is true of flexible resources?
a.They are not fully utilized and always have unused capacity.
b.They are supplied as used and needed.
c.The cost of a flexible resource is a fixed cost.
d.The quantity of the resource supplied is more than the quantity demanded. -
✔✔d.They are supplied as used and needed.
✔✔Experienced managers use knowledge of cost and activity-level relationships to:
a.determine the accounting ratios.
b.understand structural shifts.
c.understand employee behavior.
d.determine prior period profitability. - ✔✔d. understand structural shifts
✔✔Tangerine Company has nine engineers. Each engineer can process 12,000 orders
in a year. Last year, 100,000 orders were processed. Determine the unused capacity in
terms of the number of orders processed.
a.2,000 orders
b.4,000 orders
c.12,000 orders
d.8,000 orders - ✔✔d. 8,000 orders
Unused capacity = Total activity availability - Activity used= (9 engineers × 12,000
orders) − 100,000 orders processed= 108,000 - 100,000= 8,000 orders
✔✔Which of the following describes step-variable costs?
a.They are the costs that have both a fixed and a step-cost component.
b.They are costs that keep changing at all levels of step-cost activity.
c.They are costs that follow a step-cost behavior with narrow steps.
d.They are costs that follow a step-cost behavior with wide steps. - ✔✔c.They are costs
that follow a step-cost behavior with narrow steps.
, ✔✔Which of the following costs does not change as output changes?
a.Fixed cost
b.Opportunity cost
c.Step-up cost
d.Variable cost - ✔✔a. Fixed Cost
✔✔Which of the following is an advantage of the industrial engineering method of
estimating costs?
a.It allows a manager to get a quick fix on a cost relationship using only two data points.
b.It is inexpensive and must be updated frequently.
c.It can be applied to new processes and designs.
d.It is easy and objective. - ✔✔c.It can be applied to new processes and designs.
✔✔Which of the following is true of the industrial engineering method of estimating
costs?
a.It can be used to estimate costs by classifying accounts in the general ledger as fixed,
variable, or mixed.
b.It uses physical observation and analysis to determine what activities, in what
amounts, are needed to complete a process.
c.It is useful in determining the cost of manufactured items, where the process differs
from unit to unit.
d.It is most frequently used in the service sector, where there is no direct link between
materials and labor inputs with the output. - ✔✔b.It uses physical observation and
analysis to determine what activities, in what amounts, are needed to complete a
process
✔✔A(n) _____ device provides data and instructions to the computer and receives
results from it. - ✔✔input/output
✔✔Completing an instruction involves two phases—instruction and execution—which
are each broken down into two steps for a total of four steps. Which of the following is
NOT one of the four steps?
a.execute instruction
b.process data
c.fetch instruction
d.store results - ✔✔process data
✔✔_____ is a storage technology that is primarily used only for backups. - ✔✔Magnetic
tape
✔✔Parker has an Android smartphone. Which type of processor is used in his mobile
device? - ✔✔ARM
ANSWERS GRADED A+
✔✔Theta, Inc., a manufacturing company, has two major activities that drive the selling
costs of the firm, namely commission paid to sales agents on the number of sales
initiated and number of dispatches made. In the case of two explanatory variables, the
linear equation is expanded to include the additional variable:Y = F + V1X1 + V2X2,
whereX1 = Number of sales initiated by representativesX2 = Number of dispatches
madeF = Fixed cost componentY = Total selling costsWhich of the following is a
dependent component in the equation above?
a.Fixed cost component
b.Number of dispatches made
c.Total selling costs
d.Number of sales initiated by representatives - ✔✔c.Total selling costs
✔✔Which of the following statements is true of flexible resources?
a.They are not fully utilized and always have unused capacity.
b.They are supplied as used and needed.
c.The cost of a flexible resource is a fixed cost.
d.The quantity of the resource supplied is more than the quantity demanded. -
✔✔d.They are supplied as used and needed.
✔✔Experienced managers use knowledge of cost and activity-level relationships to:
a.determine the accounting ratios.
b.understand structural shifts.
c.understand employee behavior.
d.determine prior period profitability. - ✔✔d. understand structural shifts
✔✔Tangerine Company has nine engineers. Each engineer can process 12,000 orders
in a year. Last year, 100,000 orders were processed. Determine the unused capacity in
terms of the number of orders processed.
a.2,000 orders
b.4,000 orders
c.12,000 orders
d.8,000 orders - ✔✔d. 8,000 orders
Unused capacity = Total activity availability - Activity used= (9 engineers × 12,000
orders) − 100,000 orders processed= 108,000 - 100,000= 8,000 orders
✔✔Which of the following describes step-variable costs?
a.They are the costs that have both a fixed and a step-cost component.
b.They are costs that keep changing at all levels of step-cost activity.
c.They are costs that follow a step-cost behavior with narrow steps.
d.They are costs that follow a step-cost behavior with wide steps. - ✔✔c.They are costs
that follow a step-cost behavior with narrow steps.
, ✔✔Which of the following costs does not change as output changes?
a.Fixed cost
b.Opportunity cost
c.Step-up cost
d.Variable cost - ✔✔a. Fixed Cost
✔✔Which of the following is an advantage of the industrial engineering method of
estimating costs?
a.It allows a manager to get a quick fix on a cost relationship using only two data points.
b.It is inexpensive and must be updated frequently.
c.It can be applied to new processes and designs.
d.It is easy and objective. - ✔✔c.It can be applied to new processes and designs.
✔✔Which of the following is true of the industrial engineering method of estimating
costs?
a.It can be used to estimate costs by classifying accounts in the general ledger as fixed,
variable, or mixed.
b.It uses physical observation and analysis to determine what activities, in what
amounts, are needed to complete a process.
c.It is useful in determining the cost of manufactured items, where the process differs
from unit to unit.
d.It is most frequently used in the service sector, where there is no direct link between
materials and labor inputs with the output. - ✔✔b.It uses physical observation and
analysis to determine what activities, in what amounts, are needed to complete a
process
✔✔A(n) _____ device provides data and instructions to the computer and receives
results from it. - ✔✔input/output
✔✔Completing an instruction involves two phases—instruction and execution—which
are each broken down into two steps for a total of four steps. Which of the following is
NOT one of the four steps?
a.execute instruction
b.process data
c.fetch instruction
d.store results - ✔✔process data
✔✔_____ is a storage technology that is primarily used only for backups. - ✔✔Magnetic
tape
✔✔Parker has an Android smartphone. Which type of processor is used in his mobile
device? - ✔✔ARM
