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WGU D196 OA AND PRE-ASSESSMENT EXAM
(ACTUAL 2025/26 VERSION) QUESTIONS
WITH CORRECT VERIFIED GRADED A+
December general and administrative expenses are expected to be much
higher.
Credit sales are disproportionately low wiith respect to total sales compared to
other months.
December cash use is disproportionally high with respect to total sales
compared to other months.
Total cash available does not reflect December sales because there was a high
volume of credit sales. -ANS-Total cash available does not reflect December
sales because there was a high volume of credit sales.
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How can Whole Pine avoid having negative net cash flows in December?
Postpone purchasing the new equipment and do not pay cash dividends to
shareholders.
Promote cash sales with the goal of having $230,000 in cash sales and only
$210,000 in credit sales.
Instead of paying for credit purchases of inventory a month after the purchase,
pay two months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the
month following the credit sales.
You Selected
Promote cash sales with the goal of having $230,000 in cash sales and only
$210,000 in credit sales.
Instead of paying for credit purchases of inventory a month after the purchase,
pay two months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the
month following the credit sales. -ANS-Postpone purchasing the new
equipment and do not pay cash dividends to shareholders.
What is an example of a financial cost that would result from poor direct labor
budgeting and planning?
Delayed cash collections from credit customers Excessive
inventory storage costs
Increased hiring, training, and overtime costs
Increased depreciation costs for facilities -ANS-Increased hiring, training, and
overtime costs
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What does a manager have control over in a cost center? Revenues
Dividends
Assets
Costs -ANS-Costs
What should be considered when developing a measure to evaluate the
performance of a manager?
Only centralized costs Only
indirect costs
Only noncontrollable costs
Only controllable costs -ANS-Only controllable costs
In some companies, the performance measures for profit center managers
are heavily influenced by cost allocations downward from organizational
units (such as company headquarters).
Why is this a mistake?
Direct costs should not be included in the performance evaluation measure of a
profit center manager.
Uncontrollable costs should not be included in the performance evaluation
measure of a profit center manager.
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Revenues should not be included in the performance evaluation measure of
a profit center manager.
Controllable costs should not be included in the performance evaluation
measure of a profit center manager. -ANS-Uncontrollable costs should not be
included in the performance evaluation measure of a profit center manager.
Which budget should include the expected cost of supplies used by the office
staff of the corporate headquarters?
Sales budget
Direct materials budget
Production budget
Administrative expense budget -ANS-Administrative expense budget
Which items are uncontrollable, external variables that make it difficult to
forecast the level of sales?
Selling price and sales effort
Customer tastes and economic conditions -ANS-Customer tastes and economic
conditions
What is the correct sequence of budgets in a manufacturing business?
WGU D196 OA AND PRE-ASSESSMENT EXAM
(ACTUAL 2025/26 VERSION) QUESTIONS
WITH CORRECT VERIFIED GRADED A+
December general and administrative expenses are expected to be much
higher.
Credit sales are disproportionately low wiith respect to total sales compared to
other months.
December cash use is disproportionally high with respect to total sales
compared to other months.
Total cash available does not reflect December sales because there was a high
volume of credit sales. -ANS-Total cash available does not reflect December
sales because there was a high volume of credit sales.
,2|Page
How can Whole Pine avoid having negative net cash flows in December?
Postpone purchasing the new equipment and do not pay cash dividends to
shareholders.
Promote cash sales with the goal of having $230,000 in cash sales and only
$210,000 in credit sales.
Instead of paying for credit purchases of inventory a month after the purchase,
pay two months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the
month following the credit sales.
You Selected
Promote cash sales with the goal of having $230,000 in cash sales and only
$210,000 in credit sales.
Instead of paying for credit purchases of inventory a month after the purchase,
pay two months after the purchase.
Collect 50% of the credit sales in the month of credit sales and 30% in the
month following the credit sales. -ANS-Postpone purchasing the new
equipment and do not pay cash dividends to shareholders.
What is an example of a financial cost that would result from poor direct labor
budgeting and planning?
Delayed cash collections from credit customers Excessive
inventory storage costs
Increased hiring, training, and overtime costs
Increased depreciation costs for facilities -ANS-Increased hiring, training, and
overtime costs
,3|Page
What does a manager have control over in a cost center? Revenues
Dividends
Assets
Costs -ANS-Costs
What should be considered when developing a measure to evaluate the
performance of a manager?
Only centralized costs Only
indirect costs
Only noncontrollable costs
Only controllable costs -ANS-Only controllable costs
In some companies, the performance measures for profit center managers
are heavily influenced by cost allocations downward from organizational
units (such as company headquarters).
Why is this a mistake?
Direct costs should not be included in the performance evaluation measure of a
profit center manager.
Uncontrollable costs should not be included in the performance evaluation
measure of a profit center manager.
, 4|Page
Revenues should not be included in the performance evaluation measure of
a profit center manager.
Controllable costs should not be included in the performance evaluation
measure of a profit center manager. -ANS-Uncontrollable costs should not be
included in the performance evaluation measure of a profit center manager.
Which budget should include the expected cost of supplies used by the office
staff of the corporate headquarters?
Sales budget
Direct materials budget
Production budget
Administrative expense budget -ANS-Administrative expense budget
Which items are uncontrollable, external variables that make it difficult to
forecast the level of sales?
Selling price and sales effort
Customer tastes and economic conditions -ANS-Customer tastes and economic
conditions
What is the correct sequence of budgets in a manufacturing business?
