WGU D101 COST AND MANAGERIAL ACCOUNTING UNIT 7 PROCESS
COSTING QUESTIONS WITH VERIFIED ANSWERS
100% Correct 68
Incorrect 0
1 of 68
Term
What two categories is manufacturing overhead (MOH) expenses
categorized?
Give this one a go later!
The two categories of MOH The two categories of MOH
manufacturing overhead are; prime manufacturing overhead are; product
and conversion. and period.
The two categories of MOH The two categories of
manufacturing overhead are; direct MOH manufacturing
and indirect. overhead are; variable and
fixed.
Don't know?
,2 of 68
Term
What budget is prepared after the Sales Budget in regard to
creating a Master Budget?
Give this one a go later!
After the sales budget is the
After the sales budget is the Cash
Production Budget in the
Budget in the Master Budget
Master Budget planning
planning process.
process.
After the sales budget is the After the sales budget is the Selling
Budgeted Income Statement in and Administrative Expense Budget in
the Master Budget planning the Master Budget planning process.
process.
Don't know?
3 of 68
Term
What makes the Budgeted Income Statement so important to
management?
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, This Budgeted Income Statement is This Budgeted Income
valuable to management because Statement is valuable to
it reports the cash balance at the management because it reports
end of the period. the bottom line.
This Budgeted Income Statement is This Budgeted Income Statement is
valuable to management because valuable to management because
it reports the total assets of the it reports the equity structure of
company. the
company.
Don't know?
4 of 68
Term
What is the purpose of the Cash Disbursements Budget?
Give this one a go later!
The risk that the manufacturing company will have excess resources tied up in
inventory. Obsolete inventory eventually sold at a loss. And where will they store
the extra inventory and what is the associated cost.
The costs of supplies used by the office staff, the salaries of the sales manager
and company president, and the depreciation of administrative office buildings
(not production facilities) belong in this category.
The Cash Budget summarizes all cash expected to flow into the business during
the budget period. The collection of AR is a major source of cash, & its timing is an
important consideration in preparing a cash budget.
, The purpose of the Cash Disbursements Budget is to identify when cash
payments will be needed to ensure that there is enough operating capital to
cover payments timely.
Don't know?
5 of 68
Term
What are the steps included in preparing a Sales Budget (part 2)?
Give this one a go later!
The risk is that there will be lost sales (now & potentially forever). Also, it has a
negative impact on the company's reputation.
3. Multiply the number of products sold in each quarter by the selling price of
the products to arrive at total revenue in dollars per quarter.
1.Using both internal & external variables, to estimate the number of
finished products/units that will be sold during the coming year.
2.Divide the projected annual sales of units into quarters to determine
the estimated unit sales by quarters.
COSTING QUESTIONS WITH VERIFIED ANSWERS
100% Correct 68
Incorrect 0
1 of 68
Term
What two categories is manufacturing overhead (MOH) expenses
categorized?
Give this one a go later!
The two categories of MOH The two categories of MOH
manufacturing overhead are; prime manufacturing overhead are; product
and conversion. and period.
The two categories of MOH The two categories of
manufacturing overhead are; direct MOH manufacturing
and indirect. overhead are; variable and
fixed.
Don't know?
,2 of 68
Term
What budget is prepared after the Sales Budget in regard to
creating a Master Budget?
Give this one a go later!
After the sales budget is the
After the sales budget is the Cash
Production Budget in the
Budget in the Master Budget
Master Budget planning
planning process.
process.
After the sales budget is the After the sales budget is the Selling
Budgeted Income Statement in and Administrative Expense Budget in
the Master Budget planning the Master Budget planning process.
process.
Don't know?
3 of 68
Term
What makes the Budgeted Income Statement so important to
management?
Give this one a go later!
, This Budgeted Income Statement is This Budgeted Income
valuable to management because Statement is valuable to
it reports the cash balance at the management because it reports
end of the period. the bottom line.
This Budgeted Income Statement is This Budgeted Income Statement is
valuable to management because valuable to management because
it reports the total assets of the it reports the equity structure of
company. the
company.
Don't know?
4 of 68
Term
What is the purpose of the Cash Disbursements Budget?
Give this one a go later!
The risk that the manufacturing company will have excess resources tied up in
inventory. Obsolete inventory eventually sold at a loss. And where will they store
the extra inventory and what is the associated cost.
The costs of supplies used by the office staff, the salaries of the sales manager
and company president, and the depreciation of administrative office buildings
(not production facilities) belong in this category.
The Cash Budget summarizes all cash expected to flow into the business during
the budget period. The collection of AR is a major source of cash, & its timing is an
important consideration in preparing a cash budget.
, The purpose of the Cash Disbursements Budget is to identify when cash
payments will be needed to ensure that there is enough operating capital to
cover payments timely.
Don't know?
5 of 68
Term
What are the steps included in preparing a Sales Budget (part 2)?
Give this one a go later!
The risk is that there will be lost sales (now & potentially forever). Also, it has a
negative impact on the company's reputation.
3. Multiply the number of products sold in each quarter by the selling price of
the products to arrive at total revenue in dollars per quarter.
1.Using both internal & external variables, to estimate the number of
finished products/units that will be sold during the coming year.
2.Divide the projected annual sales of units into quarters to determine
the estimated unit sales by quarters.
