WSU ACCOUNTING 231 EXAM 1
QUESTIONS AND ANSWERS 100% PASS
2026 UPDATE.
Prolouge
What is financial and managerial accounting and how do they differ? - ANS Financial
accounting is concerned with reporting financial information to external parties such as
stockholders and creditors. Managerial accounting provides information to managers for use
within the organization.
What are the six business management perspectives described in "Beyond the Numbers?" -
ANS Ethics, strategic management, enterprise risk management, corporate social
responsibility, process management, and leadership perspective.
What is the ethics perspective? - ANS It is vitally important that business be conducted within
an ethical framework that builds and sustains trust.
What is the strategic management perspective? - ANS A "game plan" that enables a company
to attract customers by distinguishing itself from competitors.
What is the enterprise risk management perspective? - ANS A process used by a company to
identify the risks and develop responses to them that enable it to be reasonably assured of
meeting it's goals.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is the corporate social responsibility perspective? - ANS To serve other stakeholders
such as customers, competitors, employees, human rights advocates etc. whose interests are
tied to the company's performance.
What is the process management perspective? - ANS Series of steps that are followed in
order to carry out some task in a business.
What is the leadership perspective? - ANS To unite the behaviors of their fellow employees
around two common themes- pursuit strategic goals and making optimal decisions.
Chapter 1 - ANS
What is a direct cost? - ANS Costs that can be easily traced to a unit of product or other cost
object.
(Ex: direct materials and direct labor).
What is an indirect cost? - ANS Costs that cannot be easily traced to a unit of product or
other cost object.
(Ex: manufacturing overhead).
What are direct materials? - ANS Raw materials that become a necessary part of the product
and that can be directly traced to it.
(Ex: a radio installed into a car).
What is direct labor? - ANS Labor costs that can be easily traced to individual units of
product.
(Ex: wages paid to automobile assembly workers).
What is manufacturing overhead? - ANS Costs that cannot be easily traced to specific units
produced.
(Ex: indirect materials and indirect labor).
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
2026 UPDATE.
Prolouge
What is financial and managerial accounting and how do they differ? - ANS Financial
accounting is concerned with reporting financial information to external parties such as
stockholders and creditors. Managerial accounting provides information to managers for use
within the organization.
What are the six business management perspectives described in "Beyond the Numbers?" -
ANS Ethics, strategic management, enterprise risk management, corporate social
responsibility, process management, and leadership perspective.
What is the ethics perspective? - ANS It is vitally important that business be conducted within
an ethical framework that builds and sustains trust.
What is the strategic management perspective? - ANS A "game plan" that enables a company
to attract customers by distinguishing itself from competitors.
What is the enterprise risk management perspective? - ANS A process used by a company to
identify the risks and develop responses to them that enable it to be reasonably assured of
meeting it's goals.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is the corporate social responsibility perspective? - ANS To serve other stakeholders
such as customers, competitors, employees, human rights advocates etc. whose interests are
tied to the company's performance.
What is the process management perspective? - ANS Series of steps that are followed in
order to carry out some task in a business.
What is the leadership perspective? - ANS To unite the behaviors of their fellow employees
around two common themes- pursuit strategic goals and making optimal decisions.
Chapter 1 - ANS
What is a direct cost? - ANS Costs that can be easily traced to a unit of product or other cost
object.
(Ex: direct materials and direct labor).
What is an indirect cost? - ANS Costs that cannot be easily traced to a unit of product or
other cost object.
(Ex: manufacturing overhead).
What are direct materials? - ANS Raw materials that become a necessary part of the product
and that can be directly traced to it.
(Ex: a radio installed into a car).
What is direct labor? - ANS Labor costs that can be easily traced to individual units of
product.
(Ex: wages paid to automobile assembly workers).
What is manufacturing overhead? - ANS Costs that cannot be easily traced to specific units
produced.
(Ex: indirect materials and indirect labor).
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
