WGU C253 ADVANCED MANAGERIAL
ACCOUNTING OA ACTUAL EXAM
2025/2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS
|| 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Activity Base - ANSWER ✓ A measure of whatever causes the incurrence
of a variable cost
2. Administrative Costs - ANSWER ✓ All executive, organizational, and
clerical costs associated with the general management of an organization
rather than with manufacturing or selling.
3. Committed fixed costs - ANSWER ✓ investments in facilities, equipment,
and basic organizational structure that can't be significantly reduced even for
short periods of time without making fundamental changes
4. Common cost - ANSWER ✓ a cost that is incurred to support a number of
cost objects but that cannot be traced to them individually
5. Contribution approach - ANSWER ✓ an income statement format that
organizes costs by their behavior. costs are separated into variable and fixed
categories rather than being separated into product and period costs for
external reporting purposes
6. Contribution margin - ANSWER ✓ the amount remaining from sales
revenues after all variable expenses have been deducted.
,7. Conversion cost - ANSWER ✓ direct labor cost plus manufacturing
overhead cost.
8. Cost behavior - ANSWER ✓ the way in which a cost reacts to changes in
the level of activity
9. Cost object - ANSWER ✓ anything for which cost data are desired.
10.Cost structure - ANSWER ✓ the relative proportion of fixed, variable, and
mixed costs in an organization
11.Differential cost - ANSWER ✓ a future cost that differs between any two
alternatives
12.Differential revenue - ANSWER ✓ future revenue that differs between any
two alternatives
13.Applied Overhead - ANSWER ✓ predetermined overhead rate x actual
activity level
14.Manufacturing cost - ANSWER ✓ direct materials + direct labor +
manufacturing overhead
15.variable manufacturing cost - ANSWER ✓ direct materials + direct labor +
variable manufacturing overhead
16.Variable Manufacturing Overhead - ANSWER ✓ Costing method that
includes all other variable costs associated with converting raw materials
into finished goods
17.Variable Costing - ANSWER ✓ A costing method that includes only
variable manufacturing costs—direct materials, direct labor, and variable
manufacturing overhead—in unit product costs.
18.Difference in income between Absorbsion and Variable Costing - ANSWER
✓ Ending inventory X Fixed overhead per Unit
19.Units Sold - ANSWER ✓ Units Produced + Ending Inventory
,20.Net Cashflow - ANSWER ✓ Net Income + Depreciation
21.Contribution Margin - ANSWER ✓ Sales - Variable Costs
22.Break Even Point - ANSWER ✓ Fixed costs / contribution per unit
23.Planning Budget - ANSWER ✓ a budget created at the beginning of the
budgeting period that is valid only for the planned level of activity
24.Flexible Budget - ANSWER ✓ a Budget Prepared at the end of the period
based on actual units sold
25.Activity Variance - ANSWER ✓ Planning Budget - Flexible Budget
26.Revenue Variance - ANSWER ✓ Actual Revenue - Flexible Budget
Revenue
27.Spending Variance - ANSWER ✓ Flexible Budget Expense - Actual
Expense
28.Material Price Variance - ANSWER ✓ (actual price - standard price) x
actual quantity
29.Material Quantity Variance - ANSWER ✓ (actual quantity - standard
quantity) x standard price
30.Labor Rate Variance - ANSWER ✓ (Actual Rate - Standard Rate) X Actual
Hours
31.Labor Efficiency Variance - ANSWER ✓ (Actual Hours - Standard Hours) x
Standard Rate
32.Variable Overhead Efficiency Variance - ANSWER ✓ (Actual Hours -
Standard Hours) x Standard Rate
33.Variable Overhead Rate Variance - ANSWER ✓ Actual Hours x (Actual
Rate - Standard Rate)
, 34.Define Goals and Objectives - ANSWER ✓ Advantages of Budgeting
35.Communicate Plans - ANSWER ✓ Advantages of Budgeting
36.Coordinate Activities - ANSWER ✓ Advantages of Budgeting
37.Uncover Potential Bottlenecks - ANSWER ✓ Advantages of Budgeting
38.Means of Allocating Resources - ANSWER ✓ Advantages of Budgeting
39.Think about and plan for the future - ANSWER ✓ Advantages of Budgeting
40.Payback Period - ANSWER ✓ investment required/annual net cash inflow
41.Absorption costing - ANSWER ✓ A costing method that includes all
manufacturing costs—direct materials, direct labor, and both variable and
fixed manufacturing overhead—in unit product costs.
42.Activity - ANSWER ✓ An event that causes the consumption of overhead
resources in an organization.
43.Activity base - ANSWER ✓ A measure of whatever causes the incurrence of
a variable cost. For example, the total cost of surgical gloves in a hospital
will increase as the number of surgeries increases. Therefore, the number of
surgeries is the activity base that explains the total cost of surgical gloves.
44.Joint costs - ANSWER ✓ Costs that are incurred up to the split-off point in a
process that produces joint products.
45.Joint products - ANSWER ✓ Two or more products that are produced from
a common input.
46.Gross Profit Margin - ANSWER ✓ ((# Units Sold*Price per Unit)-((# Units
Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit)
47.Activity Rate - ANSWER ✓ Estimated Overhead/Total Product Hours
ACCOUNTING OA ACTUAL EXAM
2025/2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS
|| 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Activity Base - ANSWER ✓ A measure of whatever causes the incurrence
of a variable cost
2. Administrative Costs - ANSWER ✓ All executive, organizational, and
clerical costs associated with the general management of an organization
rather than with manufacturing or selling.
3. Committed fixed costs - ANSWER ✓ investments in facilities, equipment,
and basic organizational structure that can't be significantly reduced even for
short periods of time without making fundamental changes
4. Common cost - ANSWER ✓ a cost that is incurred to support a number of
cost objects but that cannot be traced to them individually
5. Contribution approach - ANSWER ✓ an income statement format that
organizes costs by their behavior. costs are separated into variable and fixed
categories rather than being separated into product and period costs for
external reporting purposes
6. Contribution margin - ANSWER ✓ the amount remaining from sales
revenues after all variable expenses have been deducted.
,7. Conversion cost - ANSWER ✓ direct labor cost plus manufacturing
overhead cost.
8. Cost behavior - ANSWER ✓ the way in which a cost reacts to changes in
the level of activity
9. Cost object - ANSWER ✓ anything for which cost data are desired.
10.Cost structure - ANSWER ✓ the relative proportion of fixed, variable, and
mixed costs in an organization
11.Differential cost - ANSWER ✓ a future cost that differs between any two
alternatives
12.Differential revenue - ANSWER ✓ future revenue that differs between any
two alternatives
13.Applied Overhead - ANSWER ✓ predetermined overhead rate x actual
activity level
14.Manufacturing cost - ANSWER ✓ direct materials + direct labor +
manufacturing overhead
15.variable manufacturing cost - ANSWER ✓ direct materials + direct labor +
variable manufacturing overhead
16.Variable Manufacturing Overhead - ANSWER ✓ Costing method that
includes all other variable costs associated with converting raw materials
into finished goods
17.Variable Costing - ANSWER ✓ A costing method that includes only
variable manufacturing costs—direct materials, direct labor, and variable
manufacturing overhead—in unit product costs.
18.Difference in income between Absorbsion and Variable Costing - ANSWER
✓ Ending inventory X Fixed overhead per Unit
19.Units Sold - ANSWER ✓ Units Produced + Ending Inventory
,20.Net Cashflow - ANSWER ✓ Net Income + Depreciation
21.Contribution Margin - ANSWER ✓ Sales - Variable Costs
22.Break Even Point - ANSWER ✓ Fixed costs / contribution per unit
23.Planning Budget - ANSWER ✓ a budget created at the beginning of the
budgeting period that is valid only for the planned level of activity
24.Flexible Budget - ANSWER ✓ a Budget Prepared at the end of the period
based on actual units sold
25.Activity Variance - ANSWER ✓ Planning Budget - Flexible Budget
26.Revenue Variance - ANSWER ✓ Actual Revenue - Flexible Budget
Revenue
27.Spending Variance - ANSWER ✓ Flexible Budget Expense - Actual
Expense
28.Material Price Variance - ANSWER ✓ (actual price - standard price) x
actual quantity
29.Material Quantity Variance - ANSWER ✓ (actual quantity - standard
quantity) x standard price
30.Labor Rate Variance - ANSWER ✓ (Actual Rate - Standard Rate) X Actual
Hours
31.Labor Efficiency Variance - ANSWER ✓ (Actual Hours - Standard Hours) x
Standard Rate
32.Variable Overhead Efficiency Variance - ANSWER ✓ (Actual Hours -
Standard Hours) x Standard Rate
33.Variable Overhead Rate Variance - ANSWER ✓ Actual Hours x (Actual
Rate - Standard Rate)
, 34.Define Goals and Objectives - ANSWER ✓ Advantages of Budgeting
35.Communicate Plans - ANSWER ✓ Advantages of Budgeting
36.Coordinate Activities - ANSWER ✓ Advantages of Budgeting
37.Uncover Potential Bottlenecks - ANSWER ✓ Advantages of Budgeting
38.Means of Allocating Resources - ANSWER ✓ Advantages of Budgeting
39.Think about and plan for the future - ANSWER ✓ Advantages of Budgeting
40.Payback Period - ANSWER ✓ investment required/annual net cash inflow
41.Absorption costing - ANSWER ✓ A costing method that includes all
manufacturing costs—direct materials, direct labor, and both variable and
fixed manufacturing overhead—in unit product costs.
42.Activity - ANSWER ✓ An event that causes the consumption of overhead
resources in an organization.
43.Activity base - ANSWER ✓ A measure of whatever causes the incurrence of
a variable cost. For example, the total cost of surgical gloves in a hospital
will increase as the number of surgeries increases. Therefore, the number of
surgeries is the activity base that explains the total cost of surgical gloves.
44.Joint costs - ANSWER ✓ Costs that are incurred up to the split-off point in a
process that produces joint products.
45.Joint products - ANSWER ✓ Two or more products that are produced from
a common input.
46.Gross Profit Margin - ANSWER ✓ ((# Units Sold*Price per Unit)-((# Units
Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit)
47.Activity Rate - ANSWER ✓ Estimated Overhead/Total Product Hours
