WGU UFC 1 Managerial Accounting Pre-assessment questions with correct answers

Which Feature of managerial accounting improves a company's ability to plan and control operations? a) It requires strict adherence to GAAP. b) It allows comparability across businesses. c) It provides earnings per share. d) It generates detailed information on product cost. - Answer It generates detailed information on product cost. Which statement describes period costs? a) They flow directly to the balance sheet as expenses. b) They pertain to costs necessary to manufacture the product. c) They flow directly to the current income statement as expenses. d) They include direct materials, direct labor, and manufacturing overhead costs. - Answer They flow directly to the current income statement as expenses. A company has the following costs associated with a job: Direct materials: $400 Direct labor: $450 Work in process: $950 Revenue from job: $1,450