WGU D101 COST AND MANAGERIAL ACCOUNTING UNIT 4 EXAM
QUESTIONS WITH VERIFIED ANSWERS
100% Correct 37
Incorrect 0
1 of 37
Term
What would activities such as machine setups, consumed power, and
purchase orders be considered as when using ABC costing?
Give this one a go later!
Revenue drivers Cost drivers
Market drivers Commodities
Don't know?
2 of 37
Term
,What is important to consider when determining how to allocate
overhead costs to a product or a production process?
Give this one a go later!
Determining what factors are
causing overhead costs to be The total revenue generated by
incurred. the product.
The historical profit margins of The number of employees working in
the company. the sales department.
Don't know?
3 of 37
Term
What is an important point for companies to remember when deciding
whether to implement an ABC overhead allocation systems
Give this one a go later!
ABC systems are always more The primary goal of ABC is to reduce
expensive to implement than they are the total amount of overhead
worth. incurred.
, Companies that understand
their costs have an advantage Companies should avoid ABC if they
over their competitors that do have a lot of direct labor.
not understand their
costs. Don't know?
4 of 37
Term
What is the first step for a company in implementing an ABC overhead
allocation system?
Give this one a go later!
Determine what activities are
causing the miscellaneous Calculate the total sales revenue
cost associated with for the period.
production.
Determine the number of direct labor Assign all overhead costs to the
hours used. finished goods inventory.
Don't know?
QUESTIONS WITH VERIFIED ANSWERS
100% Correct 37
Incorrect 0
1 of 37
Term
What would activities such as machine setups, consumed power, and
purchase orders be considered as when using ABC costing?
Give this one a go later!
Revenue drivers Cost drivers
Market drivers Commodities
Don't know?
2 of 37
Term
,What is important to consider when determining how to allocate
overhead costs to a product or a production process?
Give this one a go later!
Determining what factors are
causing overhead costs to be The total revenue generated by
incurred. the product.
The historical profit margins of The number of employees working in
the company. the sales department.
Don't know?
3 of 37
Term
What is an important point for companies to remember when deciding
whether to implement an ABC overhead allocation systems
Give this one a go later!
ABC systems are always more The primary goal of ABC is to reduce
expensive to implement than they are the total amount of overhead
worth. incurred.
, Companies that understand
their costs have an advantage Companies should avoid ABC if they
over their competitors that do have a lot of direct labor.
not understand their
costs. Don't know?
4 of 37
Term
What is the first step for a company in implementing an ABC overhead
allocation system?
Give this one a go later!
Determine what activities are
causing the miscellaneous Calculate the total sales revenue
cost associated with for the period.
production.
Determine the number of direct labor Assign all overhead costs to the
hours used. finished goods inventory.
Don't know?
