WGU D774 INTRODUCTION TO BUSINESS ACCOUNTING EXAM GRADED A+
1. Which type of business has as its main economic
activity using components or raw materials to make
finished goods for sale to customers?: A manufacturing
business
2. What are the three costs included in product costs?: Direct
materials, direct labor, and manufacturing overhead
3. When it comes to manufacturing companies, what are
period costs?: Costs incurred by a manufacturing company that are not
directly related to the manufacturing process
4. What is a merchandising business?: A business that purchases
finished goods for resale.
5. What is a good example of a merchandising business?:
Retailer
6. A company manufactures insulated water bottles.
Which item is a product cost for this company?: Cost of materials
used in the construction of
the insulated water bottles
7. A company produces winter coats.
Which item is a period cost for this company?: Wages of the
1/
12
, janitors in the executive oflce
building
8. What are the responsibilities of a manager in a profit
center?: Costs, revenues, and profits
9. What are the responsibilities of a manager in an
investment center?: Costs, revenues, profits, and assets
10. Business units where managers or workers have
responsibility for costs, revenues, and assets are
called centers.: Investment
11. The type of business that purchases finished goods
from manufacturers for resale: Merchandising
12. For a wood furniture maker, the cost of the skilled
workers who make the furniture is called labor cost.:
direct
13. Business units where managers or workers have
responsibility for only costs and revenues are called
centers.: profit
14. The type of business whose main economic activity
involves producing a nonphysical product that
provides value to a customer: Service
15. Product costs are recorded as an expense when the
inventory is .:
-
sold
2/
12
1. Which type of business has as its main economic
activity using components or raw materials to make
finished goods for sale to customers?: A manufacturing
business
2. What are the three costs included in product costs?: Direct
materials, direct labor, and manufacturing overhead
3. When it comes to manufacturing companies, what are
period costs?: Costs incurred by a manufacturing company that are not
directly related to the manufacturing process
4. What is a merchandising business?: A business that purchases
finished goods for resale.
5. What is a good example of a merchandising business?:
Retailer
6. A company manufactures insulated water bottles.
Which item is a product cost for this company?: Cost of materials
used in the construction of
the insulated water bottles
7. A company produces winter coats.
Which item is a period cost for this company?: Wages of the
1/
12
, janitors in the executive oflce
building
8. What are the responsibilities of a manager in a profit
center?: Costs, revenues, and profits
9. What are the responsibilities of a manager in an
investment center?: Costs, revenues, profits, and assets
10. Business units where managers or workers have
responsibility for costs, revenues, and assets are
called centers.: Investment
11. The type of business that purchases finished goods
from manufacturers for resale: Merchandising
12. For a wood furniture maker, the cost of the skilled
workers who make the furniture is called labor cost.:
direct
13. Business units where managers or workers have
responsibility for only costs and revenues are called
centers.: profit
14. The type of business whose main economic activity
involves producing a nonphysical product that
provides value to a customer: Service
15. Product costs are recorded as an expense when the
inventory is .:
-
sold
2/
12
