Principles of Financial and Managerial
Accounting - D196 WGU questions
verified with correct answers
Target Income- correct answer>>>= Sales Revenue - Variable Costs - Fixed Costs
A profit level desired by management.
At break-even- correct answer>>>Target income = 0
Sales Revenue- correct answer>>>= Sales Price x Number of Units
Variable Costs- correct answer>>>= Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion to changes in activity level.
Variable Cost Ratio x Sales Revenue- correct answer>>>Variable Costs
Unit-level activities- correct answer>>>Activities that take place each time a unit of
product is produced.
Batch-level activities- correct answer>>>Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Product-line Activities- correct answer>>>Activities that take place in order to support a
product line, regardless of the number of batches or individual units produced.
cost pool- correct answer>>>Total cost being generated by a specific overhead cost
activity.
cost driver- correct answer>>>A numerical measure used to reflect the amount of a
specific cost that is associated with a particular activity
Activity rate- correct answer>>>The amount of the estimated cost pool divided by the
estimated number of cost driver events
How do expenses impact the accounting equation?- correct answer>>>Expenses
decrease owners' equity
Purpose of the accounting cycle?- correct answer>>>To turn information about
transactions into financial statements
How is gross profit computed?- correct answer>>>Sales minus cost of good sold
, Which type of account is retained earnings?- correct answer>>>Equity
How does a classified balance sheet provide useful info to a decision maker?- correct
answer>>>It distinguishes between current and long-term assets
What are the three primary functions that company managers use managerial
accounting info for?- correct answer>>>Planning, controlling, evaluating
How could a period cost be reported in an income statement?- correct answer>>>As an
admin expense
How are the wages of the cashiers classified in a merchandising company?- correct
answer>>>Selling expense
What is the label given to the quantity computed as estimated level of activity- correct
answer>>>Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost?- correct
answer>>>It is reported as a part of cost of goods sold
Which item is a period cost?- correct answer>>>Utility bills to heat the headquarters
building
the production budget- correct answer>>>Sales budget + ending finished goods
inventory - beginning finished goods inventory
direct materials production budget- correct answer>>>Production budget × direct
materials per unit
the direct materials purchases budget- correct answer>>>Direct materials production
budget + ending direct materials inventory - beginning direct materials inventory
Cash collected from customers- correct answer>>>(current period revenue × current
period collection rate) + cash collected from previous period sales
Cash payments to suppliers- correct answer>>>(current period purchases × current
period payment rate) + cash paid on previous period purchases
Cost Variance- correct answer>>>Difference between actual costs and budgeted costs
Contribution Margin- correct answer>>>= Sales Revenue - Variable Costs
The difference between total sales and variable costs; the portion of sales revenue
available to cover fixed costs and provide a profit.
Accounting - D196 WGU questions
verified with correct answers
Target Income- correct answer>>>= Sales Revenue - Variable Costs - Fixed Costs
A profit level desired by management.
At break-even- correct answer>>>Target income = 0
Sales Revenue- correct answer>>>= Sales Price x Number of Units
Variable Costs- correct answer>>>= Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion to changes in activity level.
Variable Cost Ratio x Sales Revenue- correct answer>>>Variable Costs
Unit-level activities- correct answer>>>Activities that take place each time a unit of
product is produced.
Batch-level activities- correct answer>>>Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Product-line Activities- correct answer>>>Activities that take place in order to support a
product line, regardless of the number of batches or individual units produced.
cost pool- correct answer>>>Total cost being generated by a specific overhead cost
activity.
cost driver- correct answer>>>A numerical measure used to reflect the amount of a
specific cost that is associated with a particular activity
Activity rate- correct answer>>>The amount of the estimated cost pool divided by the
estimated number of cost driver events
How do expenses impact the accounting equation?- correct answer>>>Expenses
decrease owners' equity
Purpose of the accounting cycle?- correct answer>>>To turn information about
transactions into financial statements
How is gross profit computed?- correct answer>>>Sales minus cost of good sold
, Which type of account is retained earnings?- correct answer>>>Equity
How does a classified balance sheet provide useful info to a decision maker?- correct
answer>>>It distinguishes between current and long-term assets
What are the three primary functions that company managers use managerial
accounting info for?- correct answer>>>Planning, controlling, evaluating
How could a period cost be reported in an income statement?- correct answer>>>As an
admin expense
How are the wages of the cashiers classified in a merchandising company?- correct
answer>>>Selling expense
What is the label given to the quantity computed as estimated level of activity- correct
answer>>>Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost?- correct
answer>>>It is reported as a part of cost of goods sold
Which item is a period cost?- correct answer>>>Utility bills to heat the headquarters
building
the production budget- correct answer>>>Sales budget + ending finished goods
inventory - beginning finished goods inventory
direct materials production budget- correct answer>>>Production budget × direct
materials per unit
the direct materials purchases budget- correct answer>>>Direct materials production
budget + ending direct materials inventory - beginning direct materials inventory
Cash collected from customers- correct answer>>>(current period revenue × current
period collection rate) + cash collected from previous period sales
Cash payments to suppliers- correct answer>>>(current period purchases × current
period payment rate) + cash paid on previous period purchases
Cost Variance- correct answer>>>Difference between actual costs and budgeted costs
Contribution Margin- correct answer>>>= Sales Revenue - Variable Costs
The difference between total sales and variable costs; the portion of sales revenue
available to cover fixed costs and provide a profit.
