WGU D101 Cost and Managerial Accounting UPDATED
ACTUAL Questions and CORRECT Answers
Actual Manufacturing Overhead Manufacturing costs other than direct materials and direct labor
Applied Manufacturing Overhead The amount of the manufacturing overhead that is assigned to the goods
produced; this is usually done by using a predetermined annual overhead rate
Batch-level Activities Activities that take place to support a batch or production run, regardless of the
size of the batch
Beginning Work-in-process Inventory The ending-work-in-process inventory that is carried over from the last
accounting period to the current accounting period
Break-even Point The amount of sales at which total costs of the number of units sold equal total
revenues; the point at which there is no profit or loss
Budgeted Production in Units The budgeted number of units to be produced in a period, taking into
consideration the sales volume, the number of units in beginning inventory, and
the number of units required to be in ending inventory
Budgeted Sales in Dollars The result when the budgeted sales in units is multiplied by the unit sales prices
for each product budgeted to be sold in the budget for the next year or the next
period
Budgeted Sales in Units Information in the sales budget that feeds directly into the production budget,
from which the direct materials and direct labor budgets are created
Common Costs Overhead costs like executive salaries or property taxes that cannot be attributed
to and are not the responsibility of specific products, departments, or business
segments
Contribution Margin The difference between total sales and variable costs; the portion of sales
revenue available to cover fixed costs and provide a profit
Contribution Margin Ratio The percentage of net sales revenue left after variable costs are deducted; the
contribution margin divided by net sales revenue
Conversion Costs The costs of converting raw materials to finished products; these include direct
labor and manufacturing overhead costs
Cost Behavior The way a cost is affected by changes in activity levels
Cost Driver Numerical measure used to reflect the amount of a specific cost associated with a
particular activity
Cost Objects A product or division for which costs are accumulated and tracked
, Cost Pool Total cost being generated by a specific overhead cost activity
Cost of Goods Manufactured Total of all manufacturing costs
Cost of Goods Manufactured Schedule A schedule supporting the income statement that summarizes the total cost of
goods manufactured and transferred out of the work-inprocess inventory account
during a period; these costs include direct materials, direct labor, and applied
manufacturing overhead
Cost of Goods Sold Cost of products sold in a company, including costs of materials used to create
product and labor costs
Cost-volume-profit (CVP) Analysis Techniques for determining how changes in revenues, costs, and level of activity
affect the profitability of an organization
Critical Resource Factor The resource that limits operating capacity by its availability
Differential Cost Future costs that change as a result of a decision; also called incremental or
relevant costs
Direct Materials Budget A schedule of direct materials to be used during the budget period and direct
materials to be purchased during that period
Economies of Scale A proportionate saving in costs gained by an increased level of production
Ending Work-in-process Inventory Cost of partially completed work at the end of an accounting period
Equivalent Units of Production A method used in a process costing system to measure the production output
during a period; essentially the "work done" by the center or department in terms
of units of output
Estimated Manufacturing Overhead Budgeted manufacturing overhead costs that are used to establish the
predetermined overhead rate
Facility Support Activities Activities necessary to have a facility to participate in the development and
production of products or services; activities are not related to any particular line
of products or services
Finished Goods Inventory Inventory that has completed the production process and is ready for sale to
customers
Fixed Costs Costs that remain constant in total, regardless of activity level, at least over a
certain range of activity
Fixed Manufacturing Overhead Expenses Expenses that do not vary with the amount or the level of budgeted or actual
production within the relevant range that are needed to produce a product,
including factory depreciation or rent
Gross Margin The excess of net sales revenue over the cost of goods sold
ACTUAL Questions and CORRECT Answers
Actual Manufacturing Overhead Manufacturing costs other than direct materials and direct labor
Applied Manufacturing Overhead The amount of the manufacturing overhead that is assigned to the goods
produced; this is usually done by using a predetermined annual overhead rate
Batch-level Activities Activities that take place to support a batch or production run, regardless of the
size of the batch
Beginning Work-in-process Inventory The ending-work-in-process inventory that is carried over from the last
accounting period to the current accounting period
Break-even Point The amount of sales at which total costs of the number of units sold equal total
revenues; the point at which there is no profit or loss
Budgeted Production in Units The budgeted number of units to be produced in a period, taking into
consideration the sales volume, the number of units in beginning inventory, and
the number of units required to be in ending inventory
Budgeted Sales in Dollars The result when the budgeted sales in units is multiplied by the unit sales prices
for each product budgeted to be sold in the budget for the next year or the next
period
Budgeted Sales in Units Information in the sales budget that feeds directly into the production budget,
from which the direct materials and direct labor budgets are created
Common Costs Overhead costs like executive salaries or property taxes that cannot be attributed
to and are not the responsibility of specific products, departments, or business
segments
Contribution Margin The difference between total sales and variable costs; the portion of sales
revenue available to cover fixed costs and provide a profit
Contribution Margin Ratio The percentage of net sales revenue left after variable costs are deducted; the
contribution margin divided by net sales revenue
Conversion Costs The costs of converting raw materials to finished products; these include direct
labor and manufacturing overhead costs
Cost Behavior The way a cost is affected by changes in activity levels
Cost Driver Numerical measure used to reflect the amount of a specific cost associated with a
particular activity
Cost Objects A product or division for which costs are accumulated and tracked
, Cost Pool Total cost being generated by a specific overhead cost activity
Cost of Goods Manufactured Total of all manufacturing costs
Cost of Goods Manufactured Schedule A schedule supporting the income statement that summarizes the total cost of
goods manufactured and transferred out of the work-inprocess inventory account
during a period; these costs include direct materials, direct labor, and applied
manufacturing overhead
Cost of Goods Sold Cost of products sold in a company, including costs of materials used to create
product and labor costs
Cost-volume-profit (CVP) Analysis Techniques for determining how changes in revenues, costs, and level of activity
affect the profitability of an organization
Critical Resource Factor The resource that limits operating capacity by its availability
Differential Cost Future costs that change as a result of a decision; also called incremental or
relevant costs
Direct Materials Budget A schedule of direct materials to be used during the budget period and direct
materials to be purchased during that period
Economies of Scale A proportionate saving in costs gained by an increased level of production
Ending Work-in-process Inventory Cost of partially completed work at the end of an accounting period
Equivalent Units of Production A method used in a process costing system to measure the production output
during a period; essentially the "work done" by the center or department in terms
of units of output
Estimated Manufacturing Overhead Budgeted manufacturing overhead costs that are used to establish the
predetermined overhead rate
Facility Support Activities Activities necessary to have a facility to participate in the development and
production of products or services; activities are not related to any particular line
of products or services
Finished Goods Inventory Inventory that has completed the production process and is ready for sale to
customers
Fixed Costs Costs that remain constant in total, regardless of activity level, at least over a
certain range of activity
Fixed Manufacturing Overhead Expenses Expenses that do not vary with the amount or the level of budgeted or actual
production within the relevant range that are needed to produce a product,
including factory depreciation or rent
Gross Margin The excess of net sales revenue over the cost of goods sold
