1|Page
WGU D196 OBJECTIVE ASSESSMENT NEWEST 2026 TEST BANK |
D196 PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING OA EXAM WITH COMPLETE QUESTIONS AND
CORRECT VERIFIED ANSWERS / ALREADY GRADED A+ (MOST
RECENT!!)
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Contribution Margin per
Unit
A. $750
B. $450
C. $350
D. $400 ......ANSWER......B. $450
Explanation
CM=Sales-Variable Costs 750-300=450
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Contribution Margin Ratio?
A. 60%
B. 40% ......ANSWER......B. 40%
,2|Page
Explanation
VC Ratio=VC/Sales 300/750=.40
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Break-Even in Units
A. 2,000
B. 1,000 ......ANSWER......B. 1,000
Explanation
BE in Units=FC/CM in units 450,000/450
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Breakeven in Total Sales?
A. 750,000
B. 450,000 ......ANSWER......A. 750,000
Explanation
BE in Total Sales=FC/CM Ratio 450,000/.6=750,000
,3|Page
Flying Kites sells 3 types of kites: Just for Tots, Flying Steady, and High in
the Sky. The company reported the following data for the Flying Steady
model: Sales price per kite $200 Variable costs per kite 125 Total Fixed
costs $250,000 Calculate net income for the Flying Steady model if the
company sold 500,000 of this model using the CVP equation. Assume
the identified total fixed costs are those applied to this model.
A. 62,500,000
B. 37,250,000 ......ANSWER......B. 37,250,000
Explanation
Sales revenue $100,000,000 (200*500,000 units)Varible costs
$62,500,000 (125*500,000 units)Contributiom margin $37,500,000
(Sales - VC)
Fixed costs $250,000Net income for Flying Steady $37,250,000 (Sales -
VC - FC)
What is job order costing?
A. A method of costing that averages costs over all products made
B. A method of costing that assigns costs to specific jobs or products
C. A method of costing that assigns costs to direct labor and direct
material
D. A method of costing that allocates costs to overhead based on
activities ......ANSWER......B. A method of costing that assigns costs to
specific jobs or products
, 4|Page
How is activity-based costing (ABC) overhead allocated?
A. Overhead is allocated based on direct labor
B. Overhead is allocated based on custom job activity
C. Overhead is allocated based on different activity levels
D. Overhead is allocated based on machine hours ......ANSWER......C.
Overhead is allocated based on different activity levels
Your company has products such as generic, simple to custom-designed,
complex. The company currently uses a traditional method to allocate
overhead. You believe the overhead is not being properly allocated to
the products and think a different method should be implemented
using direct labor hours as the basis. Which type of costing system
should the company use instead?
A. Process costing
B. Job order costing
C. Product-line costing
D. Activity-based costing ......ANSWER......D. Activity-based costing
When would you use process costing?
A. Custom build homes
WGU D196 OBJECTIVE ASSESSMENT NEWEST 2026 TEST BANK |
D196 PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING OA EXAM WITH COMPLETE QUESTIONS AND
CORRECT VERIFIED ANSWERS / ALREADY GRADED A+ (MOST
RECENT!!)
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Contribution Margin per
Unit
A. $750
B. $450
C. $350
D. $400 ......ANSWER......B. $450
Explanation
CM=Sales-Variable Costs 750-300=450
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Contribution Margin Ratio?
A. 60%
B. 40% ......ANSWER......B. 40%
,2|Page
Explanation
VC Ratio=VC/Sales 300/750=.40
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Break-Even in Units
A. 2,000
B. 1,000 ......ANSWER......B. 1,000
Explanation
BE in Units=FC/CM in units 450,000/450
Bright Future makes and sells class rings for local schools. Operating
information is as follows: Selling price per ring $750 Variable cost per
ring 300 Total fixed costs $450,000 Calculate Breakeven in Total Sales?
A. 750,000
B. 450,000 ......ANSWER......A. 750,000
Explanation
BE in Total Sales=FC/CM Ratio 450,000/.6=750,000
,3|Page
Flying Kites sells 3 types of kites: Just for Tots, Flying Steady, and High in
the Sky. The company reported the following data for the Flying Steady
model: Sales price per kite $200 Variable costs per kite 125 Total Fixed
costs $250,000 Calculate net income for the Flying Steady model if the
company sold 500,000 of this model using the CVP equation. Assume
the identified total fixed costs are those applied to this model.
A. 62,500,000
B. 37,250,000 ......ANSWER......B. 37,250,000
Explanation
Sales revenue $100,000,000 (200*500,000 units)Varible costs
$62,500,000 (125*500,000 units)Contributiom margin $37,500,000
(Sales - VC)
Fixed costs $250,000Net income for Flying Steady $37,250,000 (Sales -
VC - FC)
What is job order costing?
A. A method of costing that averages costs over all products made
B. A method of costing that assigns costs to specific jobs or products
C. A method of costing that assigns costs to direct labor and direct
material
D. A method of costing that allocates costs to overhead based on
activities ......ANSWER......B. A method of costing that assigns costs to
specific jobs or products
, 4|Page
How is activity-based costing (ABC) overhead allocated?
A. Overhead is allocated based on direct labor
B. Overhead is allocated based on custom job activity
C. Overhead is allocated based on different activity levels
D. Overhead is allocated based on machine hours ......ANSWER......C.
Overhead is allocated based on different activity levels
Your company has products such as generic, simple to custom-designed,
complex. The company currently uses a traditional method to allocate
overhead. You believe the overhead is not being properly allocated to
the products and think a different method should be implemented
using direct labor hours as the basis. Which type of costing system
should the company use instead?
A. Process costing
B. Job order costing
C. Product-line costing
D. Activity-based costing ......ANSWER......D. Activity-based costing
When would you use process costing?
A. Custom build homes
