WGU D D774 Business Accounting
Practice Exam | Questions and Answers |
100% Correct & Rated A+ | Latest
2025/2026
Which situation can cause a favorable revenue variance?
- Correct Answer - Selling prices higher than budgeted for this year or
sales volume higher than budgeted for this year
What is the importance of sales mix in interpreting an unfavorable
revenue variance?
- Correct Answer - An unfavorable revenue variance can occur when
relatively more low-margin products were sold than planned, compared
to high-margin products.
Which situation can cause an unfavorable cost variance to exist?
- Correct Answer - Purchase price of materials higher than budgeted
Which trend would be concerning to see when looking at a series of
unfavorable cost variances over time?
- Correct Answer - Variances are getting larger.
, Which types of variances are the most important to investigate?
- Correct Answer - Largest and systematic
Which situation is a consequence of a company having a poor budgeting
process?
- Correct Answer - The company does not have the optimal number of
workers.
How do the budgets of retail companies, such as a home goods store,
differ from those of manufacturing companies, such as a car
manufacturer?
- Correct Answer - Retail company budgets include inventory purchase
budgets and no production budgets.
When should a production company create its labor cost budget?
- Correct Answer - After creating the sales budget
How is a company's annual budget used, in addition to managing
spending and resources?
- Correct Answer - To identify changes that must be made to operations
Which characteristic is an advantage of zero-based budgeting?
- Correct Answer - Results in lower and more efficient overall costs
Practice Exam | Questions and Answers |
100% Correct & Rated A+ | Latest
2025/2026
Which situation can cause a favorable revenue variance?
- Correct Answer - Selling prices higher than budgeted for this year or
sales volume higher than budgeted for this year
What is the importance of sales mix in interpreting an unfavorable
revenue variance?
- Correct Answer - An unfavorable revenue variance can occur when
relatively more low-margin products were sold than planned, compared
to high-margin products.
Which situation can cause an unfavorable cost variance to exist?
- Correct Answer - Purchase price of materials higher than budgeted
Which trend would be concerning to see when looking at a series of
unfavorable cost variances over time?
- Correct Answer - Variances are getting larger.
, Which types of variances are the most important to investigate?
- Correct Answer - Largest and systematic
Which situation is a consequence of a company having a poor budgeting
process?
- Correct Answer - The company does not have the optimal number of
workers.
How do the budgets of retail companies, such as a home goods store,
differ from those of manufacturing companies, such as a car
manufacturer?
- Correct Answer - Retail company budgets include inventory purchase
budgets and no production budgets.
When should a production company create its labor cost budget?
- Correct Answer - After creating the sales budget
How is a company's annual budget used, in addition to managing
spending and resources?
- Correct Answer - To identify changes that must be made to operations
Which characteristic is an advantage of zero-based budgeting?
- Correct Answer - Results in lower and more efficient overall costs
