WGU D101 Cost and Managerial Accounting exam with correct solutions

WGU D101 Cost and Managerial Accounting |\ |\ |\ |\ |\ |\




exam with correct solutions |\ |\ |\




What is a price taker? - CORRECT ANSWERS ✔✔A company that
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has to accept the price that the market sets for a good. They
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have no influence over setting the price.
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What is a price maker? - CORRECT ANSWERS ✔✔a firm
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possessing the power to set the price within the market. They
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still need to track all costs in order to make sure they are making
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an adequate return.
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What is the major purpose and use of job order costing?
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a. To create a system that tracks both manufacturing and period
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costs and assigns both to products
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b. To create a system in which manufacturing costs are tracked
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by period instead of by products
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c. To create a system in which manufacturing costs are
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accumulated by separate product orders or batches |\ |\ |\ |\ |\ |\




d. To create a system that is exclusively used by price makers
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and not by price takers - CORRECT ANSWERS ✔✔c.
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,Which statement is true?
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a. Having accurate product or service cost information is
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important for both price takers and price makers.
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b. Having accurate product or service cost information is
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important for price takers, but not price makers.
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c. Having accurate produce or service cost information is not
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important for either price takers or price makers.
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d. Having accurate product or service cost information is
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important for price makers, but not price takers. - CORRECT
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ANSWERS ✔✔a. |\




Two competitors exist in the same industry. The first company
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has accurate product cost information while the second company
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does not.
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What is the reason behind why the first company is more
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successful than the second? |\ |\ |\




a. With accurate job cost information, the first company can
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undercut the second company's prices, thus driving the second
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company out of business. |\ |\ |\




b. With accurate job cost information, the first company can set
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prices that guarantee making a profit, can understand which
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,costs need to be worked on, and can determine which actions
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can be taken to make the company more efficient and profitable.
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c. With accurate job cost information, the first company can pay
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higher wages to employees, thus motivating them more than the
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employees of the second company.
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d. With accurate job cost information, the first company can set
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prices higher than the second company, thus earning higher
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profits. - CORRECT ANSWERS ✔✔b. |\ |\ |\ |\




Job order costing is appropriate when which two conditions exist?
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a. Products produced are all the same, and the manufacturing
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processes used to produce them are the same. |\ |\ |\ |\ |\ |\ |\




b. Products produced are distinct from each other, and the
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manufacturing processes used are different for different products. |\ |\ |\ |\ |\ |\ |\




c. Products produced are distinct, but the manufacturing
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processes used are the same for different products. |\ |\ |\ |\ |\ |\ |\




d. Products produced are all the same, but the manufacturing
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processes used to produce them are different for different
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products. - CORRECT ANSWERS ✔✔b. |\ |\ |\ |\




Why is having accurate product cost information important?
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, a. So manufacturers can charge a price based on costs and a
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reasonable markup |\




b. So companies can minimize the profits they are earning
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c. So manufacturers can charge a price based on estimated
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product costs, not including a reasonable markup
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d. So companies can grow faster than all competitors in their
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industry - CORRECT ANSWERS ✔✔a.
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Which type of company should use job order costing?
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a. Air filter manufacturer
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b. Soda bottler
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c. Paper towel manufacturer
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d. Commercial aircraft manufacturer - CORRECT ANSWERS ✔✔d.
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What is a condition to using job order costing?
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a. Tracking total direct materials for a given period of time
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b. Having no manufacturing overhead assigned to the product
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cost
c. Tracking total direct labor costs for a period of time
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