WGU D196 QUESTIONS AND CORRECT ANSWERS
183
00
, 2 of 183
Term
What are differential costs?
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Costs that are irrelevant to a specific Costs that remain constant regardless
decision of the decision made
Past costs that cannot be changed by Future costs that change as the
a current decision result of a decision
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3 of 183
Term
For which company below is job order costing the appropriate costing
methodology?
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A refinery producing large quantities A manufacturer of custom-
of gasoline designed furniture
, A food processing company making A chemical plant manufacturing
millions of identical cans of soup identical batches of fertilizer
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4 of 183
Term
If overhead is underapplied during a period, which statement below is
true?
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The cost of goods sold will be
The total cost of goods sold will
exactly equal to the actual overhead
be understated
costs incurred
The total cost of goods sold will be The net income will be overstated
overstated due to lower cost of goods sold
Don't know?
5 of 183
Term
Leilani and Diego are discussing different types of businesses. They
agree that, in terms of cost flows, there are many similarities between a
manufacturer of cars, such as General Motors, and a consulting
company, such as McKinsey. However, they also agree that there is one
, very important difference in the costs being incurred by General
Motors and McKinsey. What is the important difference in the costs of
GM as compared to McKinsey?
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GM likely has relatively high
Mckinsey likely has relatively high
materials costs, whereas the
materials costs, whereas the materials
materials costs for a McKinsey
costs for gm are relatively
are relatively low.
Mckinsey likely has relatively high
overhead costs, whereas the
1/1
overhead costs for gm are relatively
low.
Don't know?
6 of 183
Term
Which phrase below describes job order costing?
Give this one a try later!
A system in which costs are averaged A system used primarily for
over large volumes of identical companies that produce a continuous
products flow of identical goods
183
00
, 2 of 183
Term
What are differential costs?
Give this one a try later!
Costs that are irrelevant to a specific Costs that remain constant regardless
decision of the decision made
Past costs that cannot be changed by Future costs that change as the
a current decision result of a decision
Don't know?
3 of 183
Term
For which company below is job order costing the appropriate costing
methodology?
Give this one a try later!
A refinery producing large quantities A manufacturer of custom-
of gasoline designed furniture
, A food processing company making A chemical plant manufacturing
millions of identical cans of soup identical batches of fertilizer
Don't know?
4 of 183
Term
If overhead is underapplied during a period, which statement below is
true?
Give this one a try later!
The cost of goods sold will be
The total cost of goods sold will
exactly equal to the actual overhead
be understated
costs incurred
The total cost of goods sold will be The net income will be overstated
overstated due to lower cost of goods sold
Don't know?
5 of 183
Term
Leilani and Diego are discussing different types of businesses. They
agree that, in terms of cost flows, there are many similarities between a
manufacturer of cars, such as General Motors, and a consulting
company, such as McKinsey. However, they also agree that there is one
, very important difference in the costs being incurred by General
Motors and McKinsey. What is the important difference in the costs of
GM as compared to McKinsey?
Give this one a try later!
GM likely has relatively high
Mckinsey likely has relatively high
materials costs, whereas the
materials costs, whereas the materials
materials costs for a McKinsey
costs for gm are relatively
are relatively low.
Mckinsey likely has relatively high
overhead costs, whereas the
1/1
overhead costs for gm are relatively
low.
Don't know?
6 of 183
Term
Which phrase below describes job order costing?
Give this one a try later!
A system in which costs are averaged A system used primarily for
over large volumes of identical companies that produce a continuous
products flow of identical goods
