WGU D196 ACCOUNTING| PA| PRE-ASSESSMENT EXAM
Correct
Incorrect
, comparison to other companies in
the industry
Don't know?
2 of 72
Term
Which example correctly shows how contribution margin analysis is
used by management in making business decisions?
Give this one a try later!
To turn transactions into financial
It tells you what questions you need
statements and provide useful
to be asking about a company's
financial information for decision
performance.
makers
Contribution margin analysis
Contribution margin ratio = $
helps management evaluate
contribution margin per unit /
whether to continue selling a
average selling price per unit
product.
Don't know?
, 3 of 72
Term
One important result of using an ABC system is more accurate
product costing. What is another important result of using an ABC
system?
Give this one a try later!
Total sales Better decisions made
The notes to the financial
Management Accounting
statements
Don't know?
4 of 72
Term
What is the purpose of a classified balance sheet?
Give this one a try later!
Sales, production, direct labor
A classified balance sheet distinguishes between current and long-term
assets.
, Purchase raw materials, transfer raw materials to production, add direct labor
and manufacturing overhead costs, transfer the cost of completed goods to
finished goods inventory, sell goods and transfer cost to cost of goods sold.
Estimated overhead costs divided by estimated level of activity
Don't know?
5 of 72
Term
The master budgeting process begins with which forecast?
Give this one a try later!
Management Accounting A forecast of sales
Manufacturing overhead Utility costs for the hospital building
Don't know?
6 of 72
Term
Information about accounting policies and practices, including
assumptions, estimates, and judgments, are included in which
element of the financial statements?
Correct
Incorrect
, comparison to other companies in
the industry
Don't know?
2 of 72
Term
Which example correctly shows how contribution margin analysis is
used by management in making business decisions?
Give this one a try later!
To turn transactions into financial
It tells you what questions you need
statements and provide useful
to be asking about a company's
financial information for decision
performance.
makers
Contribution margin analysis
Contribution margin ratio = $
helps management evaluate
contribution margin per unit /
whether to continue selling a
average selling price per unit
product.
Don't know?
, 3 of 72
Term
One important result of using an ABC system is more accurate
product costing. What is another important result of using an ABC
system?
Give this one a try later!
Total sales Better decisions made
The notes to the financial
Management Accounting
statements
Don't know?
4 of 72
Term
What is the purpose of a classified balance sheet?
Give this one a try later!
Sales, production, direct labor
A classified balance sheet distinguishes between current and long-term
assets.
, Purchase raw materials, transfer raw materials to production, add direct labor
and manufacturing overhead costs, transfer the cost of completed goods to
finished goods inventory, sell goods and transfer cost to cost of goods sold.
Estimated overhead costs divided by estimated level of activity
Don't know?
5 of 72
Term
The master budgeting process begins with which forecast?
Give this one a try later!
Management Accounting A forecast of sales
Manufacturing overhead Utility costs for the hospital building
Don't know?
6 of 72
Term
Information about accounting policies and practices, including
assumptions, estimates, and judgments, are included in which
element of the financial statements?
