WGU C253 ADVANCED MANAGERIAL
ACCOUNTING EXAM 2024 COMPLETE
200 QUESTIONS WITH 100% DETAILED
VERIFIED AND CORRECT ANSWERS
ACTUAL BRAND-NEW EXAM
ALREADY GRADED A+
An action that increases the amount of a constrained
resource. Equivalently, an action that increases the
capacity of the bottleneck. - ....ANSWER...Relaxing (or
elevating) the constraint
A benefit that should be considered when making
decisions. - ....ANSWER...Relevant benefit
A cost that should be considered when making decisions.
- ....ANSWER...Relevant cost
The range of activity within which assumptions about
variable and fixed cost behavior are valid. -
....ANSWER...Relevant range
1
,A costing method that includes all manufacturing costs—
direct materials, direct labor, and both variable and fixed
manufacturing overhead—in unit product costs. -
....ANSWER...Absorption costing
An event that causes the consumption of overhead
resources in an organization. - ....ANSWER...Activity
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. - ....ANSWER...Activity base
A "bucket" in which costs are accumulated that relate to
a single activity measure in an activity- based costing
system. - ....ANSWER...Activity cost pool
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. -
....ANSWER...Activity measure
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
2
,flexible budget and the level of activity assumed in the
planning budget. -
....ANSWER...Activity variance
A costing method based on activities that is designed to
provide managers with cost information for strategic and
other decisions that potentially affect capacity and
therefore fixed as well as variable costs. -
....ANSWER...Activity-based costing (ABC)
A management approach that focuses on managing
activities as a way of eliminating waste and reducing
delays and defects. - ....ANSWER...Activity-based
management (ABM)
All executive, organizational, and clerical costs
associated with the general management of an
organization rather than with manufacturing or
selling. - ....ANSWER...Administrative costs
A measure of activity such as direct labor-hours or
machine-hours that is used to assign costs to cost
objects. - ....ANSWER...Allocation base
A cost that can be eliminated by choosing one alternative
over another in a decision. This term is synonymous with
differential cost and relevant cost.
- ....ANSWER...Avoidable cost
3
, The difference between a direct material's actual price per
unit and its standard price per unit, multiplied by the
quantity purchased. -
....ANSWER...Materials price variance
The difference between the actual quantity of materials
used in production and the standard quantity allowed for
the actual output, multiplied by the standard price per
unit of materials. -
....ANSWER...Materials quantity variance
A document that specifies the type and quantity of
materials to be drawn from the storeroom and that
4
ACCOUNTING EXAM 2024 COMPLETE
200 QUESTIONS WITH 100% DETAILED
VERIFIED AND CORRECT ANSWERS
ACTUAL BRAND-NEW EXAM
ALREADY GRADED A+
An action that increases the amount of a constrained
resource. Equivalently, an action that increases the
capacity of the bottleneck. - ....ANSWER...Relaxing (or
elevating) the constraint
A benefit that should be considered when making
decisions. - ....ANSWER...Relevant benefit
A cost that should be considered when making decisions.
- ....ANSWER...Relevant cost
The range of activity within which assumptions about
variable and fixed cost behavior are valid. -
....ANSWER...Relevant range
1
,A costing method that includes all manufacturing costs—
direct materials, direct labor, and both variable and fixed
manufacturing overhead—in unit product costs. -
....ANSWER...Absorption costing
An event that causes the consumption of overhead
resources in an organization. - ....ANSWER...Activity
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. - ....ANSWER...Activity base
A "bucket" in which costs are accumulated that relate to
a single activity measure in an activity- based costing
system. - ....ANSWER...Activity cost pool
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. -
....ANSWER...Activity measure
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
2
,flexible budget and the level of activity assumed in the
planning budget. -
....ANSWER...Activity variance
A costing method based on activities that is designed to
provide managers with cost information for strategic and
other decisions that potentially affect capacity and
therefore fixed as well as variable costs. -
....ANSWER...Activity-based costing (ABC)
A management approach that focuses on managing
activities as a way of eliminating waste and reducing
delays and defects. - ....ANSWER...Activity-based
management (ABM)
All executive, organizational, and clerical costs
associated with the general management of an
organization rather than with manufacturing or
selling. - ....ANSWER...Administrative costs
A measure of activity such as direct labor-hours or
machine-hours that is used to assign costs to cost
objects. - ....ANSWER...Allocation base
A cost that can be eliminated by choosing one alternative
over another in a decision. This term is synonymous with
differential cost and relevant cost.
- ....ANSWER...Avoidable cost
3
, The difference between a direct material's actual price per
unit and its standard price per unit, multiplied by the
quantity purchased. -
....ANSWER...Materials price variance
The difference between the actual quantity of materials
used in production and the standard quantity allowed for
the actual output, multiplied by the standard price per
unit of materials. -
....ANSWER...Materials quantity variance
A document that specifies the type and quantity of
materials to be drawn from the storeroom and that
4
