WGU D101 COST AND MANAGERIAL
ACCOUNTING OA EXAM STUDY GUIDE
2026/2027 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS
|| 100% GUARANTEED PASS
<NEWEST VERSION>
1. What is a price taker? - ANSWER A company that has to accept the price
that the market sets for a good. They have no influence over setting the
price.
2. What is a price maker? - ANSWER a firm possessing the power to set the
price within the market. They still need to track all costs in order to make
sure they are making an adequate return.
3. What is the major purpose and use of job order costing?
a. To create a system that tracks both manufacturing and period costs
and assigns both to products
b. To create a system in which manufacturing costs are tracked by period
instead of by products
, c. To create a system in which manufacturing costs are accumulated by
separate product orders or batches
d. To create a system that is exclusively used by price makers and not by
price takers - ANSWER c.
4. What does identifying the overhead costs associated with a particular
production cost pool require?
a. Analyzing how indirect production personnel involved in a production
process spend their time during their breaks during the workday
b. Analyzing how indirect production personnel involved in a production
process spend their time during the workday
c. Analyzing how the CEO and the CFO spend their time during the
workday
d. Analyzing how sales and marketing personnel spend their time during
the workday - ANSWER b. Correct! Identifying how indirect
production personnel involved in a production process spend their
time during the workday helps a company identify the overhead costs
associated with a particular production cost pool.
5. What is the collection of overhead costs associated with a specific overhead
cost activity called?
a. Cost pool
b. Direct cost pool
c. Indirect materials pool
, d. Indirect labor pool - ANSWER a. Correct! A cost pool is a collection
of overhead costs associated with a specific overhead activity.
6. The cost of preparing documents to order ingredients from various suppliers
is an example of which type of ABC support activity?
a. Unit activity
b. Facility support activity
c. Batch activity
d. Product line activity - ANSWER d. Correct! Preparing documents to
order ingredients from various suppliers is an example of a product
line activity.
7. The cost of special machine maintenance, which is necessary because of the
frequent starting and stopping of the machines, is an example of which type
of ABC support activity?
a. Product line activity
b. Batch activity
c. Unit activity
d. Facility support activity - ANSWER b. Correct! The cost of special
machine maintenance, which is necessary because the machines are
frequently starting and stopping, is an example of a batch ABC
support activity.
8. The depreciation of the factory building is an example of which type of ABC
support activity?
a. Batch activity
b. Product line activity
c. Unit activity
, d. Facility support activity - ANSWER d. Correct! The depreciation of
the factory is an example of an ABC facility support activity.
9. The cost of electricity to operate the machines in a factory is an example of
which type of ABC support activity?
a. Facility support activity
b. Batch activity
c. Product line activity
d. Unit activity - ANSWER d. Correct! The cost of electricity to operate
machines in a factory is an example of an ABC unit support activity.
10.The security safeguards implemented to protect the manufacturing facility
are an example of which type of ABC support activity?
a. Batch activity
b. Facility support activity
c. Product line activity
d. Unit activity - ANSWER b. Correct! The security safeguards
implemented to protect the manufacturing facility are an example of a
facility support activity.
11.Sales Mix - ANSWER The relative proportion of total sales dollars (or total
units sold) that is represented by each of a company's products
12.Selling and Administrative Expense Budget - ANSWER A schedule of all
nonproduction spending expected to occur during the budget period
ACCOUNTING OA EXAM STUDY GUIDE
2026/2027 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS
|| 100% GUARANTEED PASS
<NEWEST VERSION>
1. What is a price taker? - ANSWER A company that has to accept the price
that the market sets for a good. They have no influence over setting the
price.
2. What is a price maker? - ANSWER a firm possessing the power to set the
price within the market. They still need to track all costs in order to make
sure they are making an adequate return.
3. What is the major purpose and use of job order costing?
a. To create a system that tracks both manufacturing and period costs
and assigns both to products
b. To create a system in which manufacturing costs are tracked by period
instead of by products
, c. To create a system in which manufacturing costs are accumulated by
separate product orders or batches
d. To create a system that is exclusively used by price makers and not by
price takers - ANSWER c.
4. What does identifying the overhead costs associated with a particular
production cost pool require?
a. Analyzing how indirect production personnel involved in a production
process spend their time during their breaks during the workday
b. Analyzing how indirect production personnel involved in a production
process spend their time during the workday
c. Analyzing how the CEO and the CFO spend their time during the
workday
d. Analyzing how sales and marketing personnel spend their time during
the workday - ANSWER b. Correct! Identifying how indirect
production personnel involved in a production process spend their
time during the workday helps a company identify the overhead costs
associated with a particular production cost pool.
5. What is the collection of overhead costs associated with a specific overhead
cost activity called?
a. Cost pool
b. Direct cost pool
c. Indirect materials pool
, d. Indirect labor pool - ANSWER a. Correct! A cost pool is a collection
of overhead costs associated with a specific overhead activity.
6. The cost of preparing documents to order ingredients from various suppliers
is an example of which type of ABC support activity?
a. Unit activity
b. Facility support activity
c. Batch activity
d. Product line activity - ANSWER d. Correct! Preparing documents to
order ingredients from various suppliers is an example of a product
line activity.
7. The cost of special machine maintenance, which is necessary because of the
frequent starting and stopping of the machines, is an example of which type
of ABC support activity?
a. Product line activity
b. Batch activity
c. Unit activity
d. Facility support activity - ANSWER b. Correct! The cost of special
machine maintenance, which is necessary because the machines are
frequently starting and stopping, is an example of a batch ABC
support activity.
8. The depreciation of the factory building is an example of which type of ABC
support activity?
a. Batch activity
b. Product line activity
c. Unit activity
, d. Facility support activity - ANSWER d. Correct! The depreciation of
the factory is an example of an ABC facility support activity.
9. The cost of electricity to operate the machines in a factory is an example of
which type of ABC support activity?
a. Facility support activity
b. Batch activity
c. Product line activity
d. Unit activity - ANSWER d. Correct! The cost of electricity to operate
machines in a factory is an example of an ABC unit support activity.
10.The security safeguards implemented to protect the manufacturing facility
are an example of which type of ABC support activity?
a. Batch activity
b. Facility support activity
c. Product line activity
d. Unit activity - ANSWER b. Correct! The security safeguards
implemented to protect the manufacturing facility are an example of a
facility support activity.
11.Sales Mix - ANSWER The relative proportion of total sales dollars (or total
units sold) that is represented by each of a company's products
12.Selling and Administrative Expense Budget - ANSWER A schedule of all
nonproduction spending expected to occur during the budget period
