WGU D101 Cost and Managerial Accounting UPDATED
ACTUAL Questions and CORRECT Answers
What is a price taker? A company that has to accept the price that the market sets for a good. They have
no influence over setting the price.
What is a price maker? 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.
What is the major purpose and use of job order costing? c.
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
,Which statement is true? a.
a. Having accurate product or service cost information is
important for both price takers and price makers.
b. Having accurate product or service cost information is
important for price takers, but not price makers.
c. Having accurate produce or service cost information is
not important for either price takers or price makers.
d. Having accurate product or service cost information is
important for price makers, but not price takers.
Two competitors exist in the same industry. The first b.
company has accurate product cost information while the
second company does not.
What is the reason behind why the first company is more
successful than the second?
a. With accurate job cost information, the first company
can undercut the second company's prices, thus driving
the second company out of business.
b. With accurate job cost information, the first company
can set prices that guarantee making a profit, can
understand which costs need to be worked on, and can
determine which actions can be taken to make the
company more efficient and profitable.
c. With accurate job cost information, the first company
can pay higher wages to employees, thus motivating
them more than the employees of the second company.
d. With accurate job cost information, the first company
can set prices higher than the second company, thus
earning higher profits.
, Job order costing is appropriate when which two b.
conditions exist?
a. Products produced are all the same, and the
manufacturing processes used to produce them are the
same.
b. Products produced are distinct from each other, and
the manufacturing processes used are different for
different products.
c. Products produced are distinct, but the manufacturing
processes used are the same for different products.
d. Products produced are all the same, but the
manufacturing processes used to produce them are
different for different products.
Why is having accurate product cost information a.
important?
a. So manufacturers can charge a price based on costs
and a reasonable markup
b. So companies can minimize the profits they are earning
c. So manufacturers can charge a price based on
estimated product costs, not including a reasonable
markup
d. So companies can grow faster than all competitors in
their industry
Which type of company should use job order costing? d.
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
d. Commercial aircraft manufacturer
What is a condition to using job order costing? d.
a. Tracking total direct materials for a given period of time
b. Having no manufacturing overhead assigned to the
product cost
c. Tracking total direct labor costs for a period of time
d. Identifying each specific job or product manufactured
ACTUAL Questions and CORRECT Answers
What is a price taker? A company that has to accept the price that the market sets for a good. They have
no influence over setting the price.
What is a price maker? 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.
What is the major purpose and use of job order costing? c.
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
,Which statement is true? a.
a. Having accurate product or service cost information is
important for both price takers and price makers.
b. Having accurate product or service cost information is
important for price takers, but not price makers.
c. Having accurate produce or service cost information is
not important for either price takers or price makers.
d. Having accurate product or service cost information is
important for price makers, but not price takers.
Two competitors exist in the same industry. The first b.
company has accurate product cost information while the
second company does not.
What is the reason behind why the first company is more
successful than the second?
a. With accurate job cost information, the first company
can undercut the second company's prices, thus driving
the second company out of business.
b. With accurate job cost information, the first company
can set prices that guarantee making a profit, can
understand which costs need to be worked on, and can
determine which actions can be taken to make the
company more efficient and profitable.
c. With accurate job cost information, the first company
can pay higher wages to employees, thus motivating
them more than the employees of the second company.
d. With accurate job cost information, the first company
can set prices higher than the second company, thus
earning higher profits.
, Job order costing is appropriate when which two b.
conditions exist?
a. Products produced are all the same, and the
manufacturing processes used to produce them are the
same.
b. Products produced are distinct from each other, and
the manufacturing processes used are different for
different products.
c. Products produced are distinct, but the manufacturing
processes used are the same for different products.
d. Products produced are all the same, but the
manufacturing processes used to produce them are
different for different products.
Why is having accurate product cost information a.
important?
a. So manufacturers can charge a price based on costs
and a reasonable markup
b. So companies can minimize the profits they are earning
c. So manufacturers can charge a price based on
estimated product costs, not including a reasonable
markup
d. So companies can grow faster than all competitors in
their industry
Which type of company should use job order costing? d.
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
d. Commercial aircraft manufacturer
What is a condition to using job order costing? d.
a. Tracking total direct materials for a given period of time
b. Having no manufacturing overhead assigned to the
product cost
c. Tracking total direct labor costs for a period of time
d. Identifying each specific job or product manufactured
