wgu d196 pre assessment
- answers✔✔Horizontal and Vertical Analysis
- answers✔✔Managing Cash Flow
$150,000 - answers✔✔A company reports these data:
Total sales revenue = $250,000
Number of units sold = 50,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the company's total contribution margin?
$100,000
$200,000
$150,000
$50,000
60% - answers✔✔A company reports these data:
Price per unit = $25
Variable costs per unit = $15
Fixed costs = $15,000
Given these data, what is the variable cost ratio?
60%
50%
40%
20%
,Activity rate multiplied by number of cost driver events - answers✔✔How is overhead allocated in an
ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct labor hours
You Selected
Cost pool multiplied by number of cost driver events
Activity rate multiplied by number of cost driver events
Administrative expense - answers✔✔How are wages of office staff in a company headquarters building
classified?
Indirect labor
Manufacturing overhead
Direct labor
Administrative expense
Administrative expense budget - answers✔✔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
Amount of total production cost divided by the number of units completed during a particular period of
time - answers✔✔How is the production cost per unit computed in a process costing system?
Amount of overhead cost divided by the number of units completed during a particular period of time
Amount of direct materials cost divided by the quantity of direct materials used during a particular
period of time
Amount of total production cost divided by the number of units completed during a particular period of
time
, Amount of direct labor cost divided by the number of direct labor hours used during a particular period
of time
An ABC system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of the factors that create overhead costs. -
answers✔✔Which statement is true with respect to activity-based costing (ABC) systems?
An ABC system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of the factors that create overhead costs.
An ABC system completely eliminates all overhead costs.
Implementing an ABC system requires only a careful calculation of total direct labor hours.
As an administrative expense - answers✔✔How could a period cost be reported in an income
statement?
As an administrative expense
As manufacturing overhead
As cost of goods manufactured
As cost of goods sold
As an asset in the balance sheet - answers✔✔A retail company purchased inventory costing $100,000.
By the end of the year, inventory costing $75,000 had been sold.
How is the remaining $25,000 in inventory reported in the financial statements?
As a liability in the balance sheet
As an administrative expense in the income statement
As an asset in the balance sheet
As manufacturing overhead in the income statement
Assets - answers✔✔According to the accounting equation, the amount of liabilities and equity must
always be equal to another amount.
- answers✔✔Horizontal and Vertical Analysis
- answers✔✔Managing Cash Flow
$150,000 - answers✔✔A company reports these data:
Total sales revenue = $250,000
Number of units sold = 50,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the company's total contribution margin?
$100,000
$200,000
$150,000
$50,000
60% - answers✔✔A company reports these data:
Price per unit = $25
Variable costs per unit = $15
Fixed costs = $15,000
Given these data, what is the variable cost ratio?
60%
50%
40%
20%
,Activity rate multiplied by number of cost driver events - answers✔✔How is overhead allocated in an
ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct labor hours
You Selected
Cost pool multiplied by number of cost driver events
Activity rate multiplied by number of cost driver events
Administrative expense - answers✔✔How are wages of office staff in a company headquarters building
classified?
Indirect labor
Manufacturing overhead
Direct labor
Administrative expense
Administrative expense budget - answers✔✔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
Amount of total production cost divided by the number of units completed during a particular period of
time - answers✔✔How is the production cost per unit computed in a process costing system?
Amount of overhead cost divided by the number of units completed during a particular period of time
Amount of direct materials cost divided by the quantity of direct materials used during a particular
period of time
Amount of total production cost divided by the number of units completed during a particular period of
time
, Amount of direct labor cost divided by the number of direct labor hours used during a particular period
of time
An ABC system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of the factors that create overhead costs. -
answers✔✔Which statement is true with respect to activity-based costing (ABC) systems?
An ABC system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of the factors that create overhead costs.
An ABC system completely eliminates all overhead costs.
Implementing an ABC system requires only a careful calculation of total direct labor hours.
As an administrative expense - answers✔✔How could a period cost be reported in an income
statement?
As an administrative expense
As manufacturing overhead
As cost of goods manufactured
As cost of goods sold
As an asset in the balance sheet - answers✔✔A retail company purchased inventory costing $100,000.
By the end of the year, inventory costing $75,000 had been sold.
How is the remaining $25,000 in inventory reported in the financial statements?
As a liability in the balance sheet
As an administrative expense in the income statement
As an asset in the balance sheet
As manufacturing overhead in the income statement
Assets - answers✔✔According to the accounting equation, the amount of liabilities and equity must
always be equal to another amount.
