WGU D101 COST AND MANAGERIAL ACCOUNTING UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

WGU D101 COST AND MANAGERIAL ACCOUNTING
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS

Question:
1. Actual Manufacturing Overhead
Answer:
Manufacturing costs other than direct materials and direct labor

Question:
2. Applied Manufacturing Overhead
Answer:
The amount of the manufacturing overhead that is assigned to the goods produced; this is usually done by
using a predetermined annual overhead rate

Question:
3. Batch-level Activities
Answer:
Activities that take place to support a batch or production run, regardless of the size of the batch

Question:
4. Beginning Work-in-process Inventory
Answer:
The ending-work-in-process inventory that is carried over from the last accounting period to the current
accounting period

Question:
5. Break-even Point
Answer:
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

Question:
6. Budgeted Production in Units
Answer:
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

Question:
7. Budgeted Sales in Dollars
Answer:
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

, Question:
8. Budgeted Sales in Units
Answer:
Information in the sales budget that feeds directly into the production budget, from which the direct
materials and direct labor budgets are created

Question:
9. Common Costs
Answer:
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

Question:
10. Contribution Margin
Answer:
The difference between total sales and variable costs; the portion of sales revenue available to cover fixed
costs and provide a profit

Question:
11. Contribution Margin Ratio
Answer:
The percentage of net sales revenue left after variable costs are deducted; the contribution margin divided
by net sales revenue

Question:
12. Conversion Costs
Answer:
The costs of converting raw materials to finished products; these include direct labor and manufacturing
overhead costs

Question:
13. Cost Behavior
Answer:
The way a cost is affected by changes in activity levels

Question:
14. Cost Driver
Answer:
Numerical measure used to reflect the amount of a specific cost associated with a particular activity

Question:
15. Cost Objects
Answer:
A product or division for which costs are accumulated and tracked

Question:
16. Cost Pool