WGU D196 EXAM WITH COMPLETE SOLUTIONS 100%
VERIFIED UPDATED!!
What is responsibility accounting and how does it impact an organization? -
ANSWER>>Responsibility accounting is a system of evaluating a performance in which
managers are held accountable for the costs, revenues, assets, or other elements in
which they have control over.
Responsibility accounting impacts an organization because it gives complete
accountability of cost loss and cost profit to the manager
What do responsibility centers represent? - ANSWER>>Responsibility centers
represent Profit and Cost centers.
What is a profit center and cost centers, and WHY are they important? -
ANSWER>>Profit Center: A profit center is an organizational unit in which a manager
has control over and is held accountable for BOTH cost and revenue performances.
Cost Center: A cost center is that organizational unit whereby a manager may have
control over and is held accountable for only cost performance and only for what a
manager can control.
Both matter because it gives the managers control of what to do with the money, and
any mistake they make could hurt the business.
Give specific examples of each. - ANSWER>>Profit Center: A store manager for a
fast-food restaurant is an example of a profit center.
Cost Center: A department supervisor in a factory is an example of a cost center.
How do segment margin statements work, and for what purpose are they used in
performance evaluation? - ANSWER>>A segment margin statement works by showing
the profits and losses that are directly chargeable to a segment and divides them into
,variable and fixed cost behavior patterns.
A segment margin statements purpose in performance evaluation is to give a good
picture of the strengths and weaknesses of a company.
What is cost variance? - ANSWER>>A cost variance is the difference between the
actual cost and the budgeted cost
What are Indirect and Direct Costs? - ANSWER>>Indirect Cost(Common Costs):
Indirect costs are costs that are usually shared among segments of an organization.
Examples: Salaries, depreciation, and quality control costs.
Direct Costs: Direct costs are costs that are traceable to a business unit or segment of
an organization.
Examples: Direct Labor, and Direct Materials
What is Managerial Accounting and how is it different from Financial Accounting? -
ANSWER>>Managerial Accounting: The collection of information for internal decision
making(private information not made available to the public).
Financial Accounting: The collecting, processing and reporting of information for the
benefit of the external users(such as investors and creditors).
Financial accounting information is prepared in conformity with the GAAP
How these two differ is that managerial accounting is information for the inside only for
the business to know about. Whereas financial accounting is made for anyone, such as
external users-investors.
Concepts of Planning, Evaluating and Controlling, as Related to Decision making -
ANSWER>>Planning: Identifying activities that must be carried out for an organization to
reach its goal.
Measuring: Analyzing results, providing feedback rewarding performances, and finding
out problems.
, Controlling: Keeping track of the performance of a company.
Who provides accounting information? - ANSWER>>Internal users like employees,
managers, and accountants
Who uses accounting information? - ANSWER>>people who use accounting
information are bankers, stakeholders, investors, and managers.
What is a product line and how is that information used? - ANSWER>>A product line is
one item a company puts together on the same report as other products, but is
separated by each individual product or segment. The information is used to show the
profitability of each product made by the same company on the same chart, and to show
which product is meeting the standards or not.
Example: How Coca-Cola mainly sells sodas, but they also have a branch off and sell
minute maid.
Can you describe and differentiate a manufacturing, a service, and a merchandising
business from one another? - ANSWER>>Manufacturing Business: A manufacturing
business is any organization whose main economic activity involves using raw materials
to make finished goods for sale to customers.
Examples: Apple, or Boeing
Service Business: A service business is any organization whose primary economic
activity is the creation and delivery of an intangible good that has value to a consumer.
Examples include: Hospitals, or Law Firms
Merchandising Business: A merchandising business is any organization whose main
economic activity consists of purchasing goods in finished form and reselling them to
consumers.
VERIFIED UPDATED!!
What is responsibility accounting and how does it impact an organization? -
ANSWER>>Responsibility accounting is a system of evaluating a performance in which
managers are held accountable for the costs, revenues, assets, or other elements in
which they have control over.
Responsibility accounting impacts an organization because it gives complete
accountability of cost loss and cost profit to the manager
What do responsibility centers represent? - ANSWER>>Responsibility centers
represent Profit and Cost centers.
What is a profit center and cost centers, and WHY are they important? -
ANSWER>>Profit Center: A profit center is an organizational unit in which a manager
has control over and is held accountable for BOTH cost and revenue performances.
Cost Center: A cost center is that organizational unit whereby a manager may have
control over and is held accountable for only cost performance and only for what a
manager can control.
Both matter because it gives the managers control of what to do with the money, and
any mistake they make could hurt the business.
Give specific examples of each. - ANSWER>>Profit Center: A store manager for a
fast-food restaurant is an example of a profit center.
Cost Center: A department supervisor in a factory is an example of a cost center.
How do segment margin statements work, and for what purpose are they used in
performance evaluation? - ANSWER>>A segment margin statement works by showing
the profits and losses that are directly chargeable to a segment and divides them into
,variable and fixed cost behavior patterns.
A segment margin statements purpose in performance evaluation is to give a good
picture of the strengths and weaknesses of a company.
What is cost variance? - ANSWER>>A cost variance is the difference between the
actual cost and the budgeted cost
What are Indirect and Direct Costs? - ANSWER>>Indirect Cost(Common Costs):
Indirect costs are costs that are usually shared among segments of an organization.
Examples: Salaries, depreciation, and quality control costs.
Direct Costs: Direct costs are costs that are traceable to a business unit or segment of
an organization.
Examples: Direct Labor, and Direct Materials
What is Managerial Accounting and how is it different from Financial Accounting? -
ANSWER>>Managerial Accounting: The collection of information for internal decision
making(private information not made available to the public).
Financial Accounting: The collecting, processing and reporting of information for the
benefit of the external users(such as investors and creditors).
Financial accounting information is prepared in conformity with the GAAP
How these two differ is that managerial accounting is information for the inside only for
the business to know about. Whereas financial accounting is made for anyone, such as
external users-investors.
Concepts of Planning, Evaluating and Controlling, as Related to Decision making -
ANSWER>>Planning: Identifying activities that must be carried out for an organization to
reach its goal.
Measuring: Analyzing results, providing feedback rewarding performances, and finding
out problems.
, Controlling: Keeping track of the performance of a company.
Who provides accounting information? - ANSWER>>Internal users like employees,
managers, and accountants
Who uses accounting information? - ANSWER>>people who use accounting
information are bankers, stakeholders, investors, and managers.
What is a product line and how is that information used? - ANSWER>>A product line is
one item a company puts together on the same report as other products, but is
separated by each individual product or segment. The information is used to show the
profitability of each product made by the same company on the same chart, and to show
which product is meeting the standards or not.
Example: How Coca-Cola mainly sells sodas, but they also have a branch off and sell
minute maid.
Can you describe and differentiate a manufacturing, a service, and a merchandising
business from one another? - ANSWER>>Manufacturing Business: A manufacturing
business is any organization whose main economic activity involves using raw materials
to make finished goods for sale to customers.
Examples: Apple, or Boeing
Service Business: A service business is any organization whose primary economic
activity is the creation and delivery of an intangible good that has value to a consumer.
Examples include: Hospitals, or Law Firms
Merchandising Business: A merchandising business is any organization whose main
economic activity consists of purchasing goods in finished form and reselling them to
consumers.
