WGU C253 ADVANCED MANAGERIAL
ACCOUNTING OBJECTIVE ASSESSMENT
ACTUAL EXAM PREP 2025/2026
COMPLETE QUESTIONS BANK AND
CORRECT DETAILED ANSWERS WITH
RATIONALES || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Job order cost - ANSWER ✔ direct materials used + direct labor + applied
manufacturing overhead
2. Pre-determined manufacturing overhead rate - ANSWER ✔ Estimated
manufacturing overhead/estimated units of allocation base
3. Applied manufacturing overhead - ANSWER ✔ Actual Units of Allocation
Base * Pre-determined Manufacturing Overhead Rate
4. Under/Over Applied Manufacturing Overhead - ANSWER ✔ Actual
Manufacturing Overhead -- Applied Manufacturing Overhead
5. Cost of Goods Manufactured - ANSWER ✔ Direct materials + Direct labor
+ Manufacturing overhead applied + Beginning work in process inventory -
Ending work in process inventory
6. Net income - ANSWER ✔ sales revenue - variable costs - fixed costs
7. Units produced > units sold - ANSWER ✔ absorption > variable
8. Units produced = units sold - ANSWER ✔ absorption = variable
,9. Units produced < units sold - ANSWER ✔ absorption < variable
10.Differential cost - ANSWER ✔ a future cost that differs between any two
alternatives; goes away if decision is not made
11.Which method is better for investing: net present value or internal rate of
return? - ANSWER ✔ net present value
12.Activity variance - ANSWER ✔ planning budget - flexible budget
13.Revenue Variance - ANSWER ✔ Flexible Budget Revenue - Actual
Revenue
14.Spending variance - ANSWER ✔ Flexible Budget Expense - Actual
Expense
15.Material price variance - ANSWER ✔ (Actual Price - Standard
Price)*Actual Quantity Purchased
16.Material Quantity Variance - ANSWER ✔ (actual quantity used - standard
quantity)*standard price
17.Labor Rate Variance - ANSWER ✔ (actual rate - standard rate)
*actual hours
18.Labor efficiency variance - ANSWER ✔ (Actual Hours - Standard Hours)
*Standard Rate
19.Budgeted Production - ANSWER ✔ Budgeted Sales + Desired Ending
Inventory - Beginning Inventory
20.Variable Overhead Rate Variance - ANSWER ✔ (Actual Rate-Standard
Rate)*Actual Hours
21.Variable Overhead Efficiency Variance - ANSWER ✔ (Actual Hours -
Standard Hours)*Standard Rate
,22.Contribution Margin Ratio - ANSWER ✔ (Sales Revenue - Variable
Costs)/Sales Revenue
23.Break Even Point - ANSWER ✔ Fixed Costs/Contribution Margin Ratio
24.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.
25.Activity - ANSWER ✔ An event that causes the consumption of overhead
resources in an organization.
26.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.
27.Activity cost pool - ANSWER ✔ A "bucket" in which costs are accumulated
that relate to a single activity measure in an activity-based costing system.
28.Activity measure - ANSWER ✔ An allocation base in an activity-based
costing system; ideally, a measure of the amount of activity that drives the
costs in an activity cost pool.
29.Activity variance - ANSWER ✔ The difference between a revenue or cost
item in the flexible budget and the same item in the static planning budget.
An activity variance is due solely to the difference between the actual level
of activity used in the flexible budget and the level of activity assumed in the
planning budget.
30.Prime Cost - ANSWER ✔ Direct Materials + Direct Labor
31.Conversion Cost - ANSWER ✔ Direct Labor + Manufacturing Overhead
32.Total Mixed Cost (The Cost Formula) - ANSWER ✔ Y = a + bX (Y = mx +
b)
, 33.Contribution Margin (CM) - ANSWER ✔ Sales - All Variable Expenses
34.Contribution Margin per Unit (CMU) - ANSWER ✔ Selling Price per Unit -
Variable Cost per Unit
35.Profit 1 of 4 - ANSWER ✔ (Sales - Variable Expenses) - Fixed Expenses
36.Profit 2 of 4 - ANSWER ✔ CM - FE
37.Profit 3 of 4 - ANSWER ✔ (PpU x Qty Sold) - (VEpU x Qty Sold) - FE
38.Profit 4 of 4 - ANSWER ✔ (CMU x Qty Sold) - FE
39.CM Ratio 1 of 2 - ANSWER ✔ CM / S
40.CM Ratio 2 of 2 - ANSWER ✔ (S - VE) / S
41.Allocation Base - ANSWER ✔ measure of activity used to assign costs to
cost objects
42.Predetermined OH R - ANSWER ✔ Est. Total MOH Cost / Est. Total Amt.
of Allocation Base
43.Total MOH Applied - ANSWER ✔ P OH R x Amt. of Allocation Base
Incurred
44.Under/Over Applied MOH - ANSWER ✔ Actual MOH - Applied MOH
45.What appears on the job cost sheet and WIP account? - ANSWER ✔
Applied OH Cost, based on P OH R (NOT Actual OH Cost)
46.Direct Materials Used in Production - ANSWER ✔ B. RM + P - E. RM (-
Indirect M Used in Production, if any)
47.Total Manuf. Costs Used in Production - ANSWER ✔ DM Used in
Production + DL + MOH Applied to WIP
ACCOUNTING OBJECTIVE ASSESSMENT
ACTUAL EXAM PREP 2025/2026
COMPLETE QUESTIONS BANK AND
CORRECT DETAILED ANSWERS WITH
RATIONALES || 100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Job order cost - ANSWER ✔ direct materials used + direct labor + applied
manufacturing overhead
2. Pre-determined manufacturing overhead rate - ANSWER ✔ Estimated
manufacturing overhead/estimated units of allocation base
3. Applied manufacturing overhead - ANSWER ✔ Actual Units of Allocation
Base * Pre-determined Manufacturing Overhead Rate
4. Under/Over Applied Manufacturing Overhead - ANSWER ✔ Actual
Manufacturing Overhead -- Applied Manufacturing Overhead
5. Cost of Goods Manufactured - ANSWER ✔ Direct materials + Direct labor
+ Manufacturing overhead applied + Beginning work in process inventory -
Ending work in process inventory
6. Net income - ANSWER ✔ sales revenue - variable costs - fixed costs
7. Units produced > units sold - ANSWER ✔ absorption > variable
8. Units produced = units sold - ANSWER ✔ absorption = variable
,9. Units produced < units sold - ANSWER ✔ absorption < variable
10.Differential cost - ANSWER ✔ a future cost that differs between any two
alternatives; goes away if decision is not made
11.Which method is better for investing: net present value or internal rate of
return? - ANSWER ✔ net present value
12.Activity variance - ANSWER ✔ planning budget - flexible budget
13.Revenue Variance - ANSWER ✔ Flexible Budget Revenue - Actual
Revenue
14.Spending variance - ANSWER ✔ Flexible Budget Expense - Actual
Expense
15.Material price variance - ANSWER ✔ (Actual Price - Standard
Price)*Actual Quantity Purchased
16.Material Quantity Variance - ANSWER ✔ (actual quantity used - standard
quantity)*standard price
17.Labor Rate Variance - ANSWER ✔ (actual rate - standard rate)
*actual hours
18.Labor efficiency variance - ANSWER ✔ (Actual Hours - Standard Hours)
*Standard Rate
19.Budgeted Production - ANSWER ✔ Budgeted Sales + Desired Ending
Inventory - Beginning Inventory
20.Variable Overhead Rate Variance - ANSWER ✔ (Actual Rate-Standard
Rate)*Actual Hours
21.Variable Overhead Efficiency Variance - ANSWER ✔ (Actual Hours -
Standard Hours)*Standard Rate
,22.Contribution Margin Ratio - ANSWER ✔ (Sales Revenue - Variable
Costs)/Sales Revenue
23.Break Even Point - ANSWER ✔ Fixed Costs/Contribution Margin Ratio
24.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.
25.Activity - ANSWER ✔ An event that causes the consumption of overhead
resources in an organization.
26.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.
27.Activity cost pool - ANSWER ✔ A "bucket" in which costs are accumulated
that relate to a single activity measure in an activity-based costing system.
28.Activity measure - ANSWER ✔ An allocation base in an activity-based
costing system; ideally, a measure of the amount of activity that drives the
costs in an activity cost pool.
29.Activity variance - ANSWER ✔ The difference between a revenue or cost
item in the flexible budget and the same item in the static planning budget.
An activity variance is due solely to the difference between the actual level
of activity used in the flexible budget and the level of activity assumed in the
planning budget.
30.Prime Cost - ANSWER ✔ Direct Materials + Direct Labor
31.Conversion Cost - ANSWER ✔ Direct Labor + Manufacturing Overhead
32.Total Mixed Cost (The Cost Formula) - ANSWER ✔ Y = a + bX (Y = mx +
b)
, 33.Contribution Margin (CM) - ANSWER ✔ Sales - All Variable Expenses
34.Contribution Margin per Unit (CMU) - ANSWER ✔ Selling Price per Unit -
Variable Cost per Unit
35.Profit 1 of 4 - ANSWER ✔ (Sales - Variable Expenses) - Fixed Expenses
36.Profit 2 of 4 - ANSWER ✔ CM - FE
37.Profit 3 of 4 - ANSWER ✔ (PpU x Qty Sold) - (VEpU x Qty Sold) - FE
38.Profit 4 of 4 - ANSWER ✔ (CMU x Qty Sold) - FE
39.CM Ratio 1 of 2 - ANSWER ✔ CM / S
40.CM Ratio 2 of 2 - ANSWER ✔ (S - VE) / S
41.Allocation Base - ANSWER ✔ measure of activity used to assign costs to
cost objects
42.Predetermined OH R - ANSWER ✔ Est. Total MOH Cost / Est. Total Amt.
of Allocation Base
43.Total MOH Applied - ANSWER ✔ P OH R x Amt. of Allocation Base
Incurred
44.Under/Over Applied MOH - ANSWER ✔ Actual MOH - Applied MOH
45.What appears on the job cost sheet and WIP account? - ANSWER ✔
Applied OH Cost, based on P OH R (NOT Actual OH Cost)
46.Direct Materials Used in Production - ANSWER ✔ B. RM + P - E. RM (-
Indirect M Used in Production, if any)
47.Total Manuf. Costs Used in Production - ANSWER ✔ DM Used in
Production + DL + MOH Applied to WIP
