WGU D196 Final ExamQuestions With Answers Latest Update 2023/2024 (VERIFIED)

The production budget - ANSWER Sales budget + ending finished goods inventory - beginning finished goods inventory direct materials production budget - ANSWER Production budget × direct materials per unit the direct materials purchases budget - ANSWER Direct materials production budget + ending direct materials inventory - beginning direct materials inventory Cash collected from customers - ANSWER (current period revenue × current period collection rate) + cash collected from previous period sales Cash payments to suppliers - ANSWER (current period purchases × current period payment rate) + cash paid on previous period purchases Cost Variance - ANSWER Difference between actual costs and budgeted costs Contribution Margin - ANSWER = Sales Revenue - Variable Costs The difference between total sales and variable costs; the portion of sales revenue available to cover fixed costs and provide a profit. Target Income - ANSWER = Sales Revenue - Variable Costs - Fixed Costs A profit level desired by management. At break-even - ANSWER Target income = 0 Sales Revenue - ANSWER = Sales Price x Number of Units Variable Costs - ANSWER = Variable Cost per Unit x Number of Units Costs that change in total in direct proportion to changes in activity level. Variable Cost Ratio x Sales Revenue - ANSWER Variable Costs Unit-level activities - ANSWER Activities that take place each time a unit of product is produced. Batch-level activities - ANSWER Activities that take place in order to support a batch or production run, regardless of the size of the batch. Product-line Activities - ANSWER Activities that take place in order to support a product line, regardless of the number of batches or individual units produced. cost pool - ANSWER Total cost being generated by a specific overhead cost activity. cost driver - ANSWER A numerical measure used to reflect the amount of a specific cost that is associated with a particular activity Activity rate - ANSWER The amount of the estimated cost pool divided by the estimated number of cost driver events How do expenses impact the accounting equation? - ANSWER Expenses decrease owners' equity Purpose of the accounting cycle? - ANSWER To turn information about transactions into financial statements How is gross profit computed? - ANSWER Sales minus cost of good sold Which type of account is retained earnings? - ANSWER Equity How does a classified balance sheet provide useful info to a decision maker? - ANSWER It distinguishes between current and long-term assets What are the three primary functions that company managers use managerial accounting info for? - ANSWER Planning, controlling, evaluating How could a period cost be reported in an income statement? - ANSWER As an admin expense How are the wages of the cashiers classified in a merchandising company? - ANSWER Selling expense What is the label given to the quantity computed as estimated level of activity - ANSWER Predetermined overhead rate In a job order costing system, what is the proper accounting for a product cost? - ANSWER It is reported as a part of cost of goods sold Which item is a period cost? - ANSWER Utility bills to heat the headquarters building Accounting System - ANSWER The procedures and processes used by a business to analyze transactions, handle routine bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the business. Activity-based Costing (ABC) - ANSWER A method of attributing overhead costs to products based on measurable factors that relate to activities that create overhead costs. Arm's-length Transaction - ANSWER A transaction in which a buyer and seller act independently to get the best possible deal. Articulation - ANSWER The interrelationships among the financial statements. Assets - ANSWER Economic resources that are owned or controlled by a company. Accounting Equation - ANSWER An algebraic equation that expresses the relationship between assets (resources), liabilities (obligations), and owner's equity (net assets, or the residual interest in a business after all liabilities have been met): Assets = Liabilities + Owners' Equity.