WGU D774 INTRO TO LATEST
BUSINESS ACCOUNTING
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
Which information can be learned by looking at trends in
variances?
Which specific costs, expenses, and revenues are getting better or worse
Which factor must be considered when responsibilities are assigned
to managers?
Managers should be held responsible for only those costs, revenues,
profits, and assets over which they have substantial control.
Which items does a profit center manager have responsibility over?
Costs, revenues, and profits
A chief financial officer (CFO) has determined that a profit center is
losing money. The profit center manager suspects that the CFO’s
calculations are heavily influenced by subtracting company
headquarters costs from the profit center’s computed profit. These
company headquarters costs primarily reflect the salaries and
benefits for the people working in the company headquarters
building. What mistake is the CFO making?
Including costs in the performance evaluation measure of the profit
center that cannot be controlled by the profit center manager
END OF
PAGE
1
, WGU D774 INTRO TO LATEST
BUSINESS ACCOUNTING
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
Which measure is one of the most common activity levels used when
trying to understand how costs change in relation to changes in
activity level?
Number of units produced
Synesthor manufactures music headphones. Which cost is a product
cost for Synesthor?
Wages paid to the headphone assemblers who work on the production
line
Which category is one of the three categories of product costs in a
firm that makes cars?
Manufacturing overhead
What is the final step in the sequence of the flow of costs through a
manufacturing operation?
Sell goods and transfer cost to cost of goods sold
Which setting is appropriate for the use of an ABC overhead
allocation system?
Operations involve a variety of different products and processes.
END OF
PAGE
2
, WGU D774 INTRO TO LATEST
BUSINESS ACCOUNTING
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
Where in a manufacturing business is work-in-process inventory
located?
Production facility
When is it appropriate for a company to use process costing?
When the company produces a large volume of products using a series
of uniform processes
Which condition is associated with a company’s break-even point?
The company has no profit and has no loss.
Which cost components are included in a mixed cost?
Fixed cost and variable cost
Which cost is an example of a fixed cost?
Rent on the factory building
Jaunty Coffee Co. currently has a level of sales that results in the
company being below its break-even point. Which set of actions can
be taken to help Jaunty Coffee Co. reach its break-even point?
Raise the price per unit, lower the variable cost per unit, lower fixed
costs
END OF
PAGE
3
BUSINESS ACCOUNTING
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
Which information can be learned by looking at trends in
variances?
Which specific costs, expenses, and revenues are getting better or worse
Which factor must be considered when responsibilities are assigned
to managers?
Managers should be held responsible for only those costs, revenues,
profits, and assets over which they have substantial control.
Which items does a profit center manager have responsibility over?
Costs, revenues, and profits
A chief financial officer (CFO) has determined that a profit center is
losing money. The profit center manager suspects that the CFO’s
calculations are heavily influenced by subtracting company
headquarters costs from the profit center’s computed profit. These
company headquarters costs primarily reflect the salaries and
benefits for the people working in the company headquarters
building. What mistake is the CFO making?
Including costs in the performance evaluation measure of the profit
center that cannot be controlled by the profit center manager
END OF
PAGE
1
, WGU D774 INTRO TO LATEST
BUSINESS ACCOUNTING
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
Which measure is one of the most common activity levels used when
trying to understand how costs change in relation to changes in
activity level?
Number of units produced
Synesthor manufactures music headphones. Which cost is a product
cost for Synesthor?
Wages paid to the headphone assemblers who work on the production
line
Which category is one of the three categories of product costs in a
firm that makes cars?
Manufacturing overhead
What is the final step in the sequence of the flow of costs through a
manufacturing operation?
Sell goods and transfer cost to cost of goods sold
Which setting is appropriate for the use of an ABC overhead
allocation system?
Operations involve a variety of different products and processes.
END OF
PAGE
2
, WGU D774 INTRO TO LATEST
BUSINESS ACCOUNTING
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
Where in a manufacturing business is work-in-process inventory
located?
Production facility
When is it appropriate for a company to use process costing?
When the company produces a large volume of products using a series
of uniform processes
Which condition is associated with a company’s break-even point?
The company has no profit and has no loss.
Which cost components are included in a mixed cost?
Fixed cost and variable cost
Which cost is an example of a fixed cost?
Rent on the factory building
Jaunty Coffee Co. currently has a level of sales that results in the
company being below its break-even point. Which set of actions can
be taken to help Jaunty Coffee Co. reach its break-even point?
Raise the price per unit, lower the variable cost per unit, lower fixed
costs
END OF
PAGE
3
