WGU D101 Cost and Managerial Accounting
Exam/85 Verified Questions and Answers
Actual Manufacturing Overhead - -Manufacturing costs other than direct
materials and direct labor
- Applied Manufacturing Overhead - -The amount of the manufacturing
overhead that is assigned to the goods produced; this is usually done by
using a predetermined annual overhead rate
- Batch-level Activities - -Activities that take place to support a batch or
production run, regardless of the size of the batch
- Beginning Work-in-process Inventory - -The ending-work-in-process
inventory that is carried over from the last accounting period to the current
accounting period
- Break-even Point - -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
- Budgeted Production in Units - -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
- Budgeted Sales in Dollars - -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
- Budgeted Sales in Units - -Information in the sales budget that feeds
directly into the production budget, from which the direct materials and
direct labor budgets are created
- Common Costs - -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
- Contribution Margin - -The difference between total sales and variable
costs; the portion of sales revenue available to cover fixed costs and provide
a profit
- Contribution Margin Ratio - -The percentage of net sales revenue left after
variable costs are deducted; the contribution margin divided by net sales
revenue
, - Conversion Costs - -The costs of converting raw materials to finished
products; these include direct labor and manufacturing overhead costs
- Cost Behavior - -The way a cost is affected by changes in activity levels
- Cost Driver - -Numerical measure used to reflect the amount of a specific
cost associated with a particular activity
- Cost Objects - -A product or division for which costs are accumulated and
tracked
- Cost Pool - -Total cost being generated by a specific overhead cost activity
- Cost of Goods Manufactured - -Total of all manufacturing costs
- Cost of Goods Manufactured Schedule - -A schedule supporting the income
statement that summarizes the total cost of goods manufactured and
transferred out of the work-inprocess inventory account during a period;
these costs include direct materials, direct labor, and applied manufacturing
overhead
- Cost of Goods Sold - -Cost of products sold in a company, including costs
of materials used to create product and labor costs
- Cost-volume-profit (CVP) Analysis - -Techniques for determining how
changes in revenues, costs, and level of activity affect the profitability of an
organization
- Critical Resource Factor - -The resource that limits operating capacity by
its availability
- Differential Cost - -Future costs that change as a result of a decision; also
called incremental or relevant costs
- Direct Materials Budget - -A schedule of direct materials to be used during
the budget period and direct materials to be purchased during that period
- Economies of Scale - -A proportionate saving in costs gained by an
increased level of production
- Ending Work-in-process Inventory - -Cost of partially completed work at
the end of an accounting period
- Equivalent Units of Production - -A method used in a process costing
system to measure the production output during a period; essentially the
"work done" by the center or department in terms of units of output
Exam/85 Verified Questions and Answers
Actual Manufacturing Overhead - -Manufacturing costs other than direct
materials and direct labor
- Applied Manufacturing Overhead - -The amount of the manufacturing
overhead that is assigned to the goods produced; this is usually done by
using a predetermined annual overhead rate
- Batch-level Activities - -Activities that take place to support a batch or
production run, regardless of the size of the batch
- Beginning Work-in-process Inventory - -The ending-work-in-process
inventory that is carried over from the last accounting period to the current
accounting period
- Break-even Point - -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
- Budgeted Production in Units - -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
- Budgeted Sales in Dollars - -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
- Budgeted Sales in Units - -Information in the sales budget that feeds
directly into the production budget, from which the direct materials and
direct labor budgets are created
- Common Costs - -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
- Contribution Margin - -The difference between total sales and variable
costs; the portion of sales revenue available to cover fixed costs and provide
a profit
- Contribution Margin Ratio - -The percentage of net sales revenue left after
variable costs are deducted; the contribution margin divided by net sales
revenue
, - Conversion Costs - -The costs of converting raw materials to finished
products; these include direct labor and manufacturing overhead costs
- Cost Behavior - -The way a cost is affected by changes in activity levels
- Cost Driver - -Numerical measure used to reflect the amount of a specific
cost associated with a particular activity
- Cost Objects - -A product or division for which costs are accumulated and
tracked
- Cost Pool - -Total cost being generated by a specific overhead cost activity
- Cost of Goods Manufactured - -Total of all manufacturing costs
- Cost of Goods Manufactured Schedule - -A schedule supporting the income
statement that summarizes the total cost of goods manufactured and
transferred out of the work-inprocess inventory account during a period;
these costs include direct materials, direct labor, and applied manufacturing
overhead
- Cost of Goods Sold - -Cost of products sold in a company, including costs
of materials used to create product and labor costs
- Cost-volume-profit (CVP) Analysis - -Techniques for determining how
changes in revenues, costs, and level of activity affect the profitability of an
organization
- Critical Resource Factor - -The resource that limits operating capacity by
its availability
- Differential Cost - -Future costs that change as a result of a decision; also
called incremental or relevant costs
- Direct Materials Budget - -A schedule of direct materials to be used during
the budget period and direct materials to be purchased during that period
- Economies of Scale - -A proportionate saving in costs gained by an
increased level of production
- Ending Work-in-process Inventory - -Cost of partially completed work at
the end of an accounting period
- Equivalent Units of Production - -A method used in a process costing
system to measure the production output during a period; essentially the
"work done" by the center or department in terms of units of output
