WGU C253 ADVANCED MANAGERIAL ACCOUNTING
QUIZ AND ANSWERS 2024 - 2025
Absorption,costing,,ANS,-,,A,costing,method,that,includes,all,manufacturing,costs—
direct,materials,,direct,labor,,and,both,variable,and,fixed,manufacturing,overhead—in,unit,product,costs.
Activity,,ANS,-,,An,event,that,causes,the,consumption,of,overhead,resources,in,an,organization.
Activity,base,,ANS,-
,,A,measure,of,whatever,causes,the,incurrence,of,a,variable,cost.,For,example,,the,total,cost,of,surgical,glo
ves,in,a,hospital,will,increase,as,the,number,of,surgeries,increases.,Therefore,,the,number,of,surgeries,is,t
he,activity,base,that,explains,the,total,cost,of,surgical,gloves.
Activity,cost,pool,,ANS,-
,,A,"bucket",in,which,costs,are,accumulated,that,relate,to,a,single,activity,measure,in,an,activity-
based,costing,system.
Activity,measure,,ANS,-,,An,allocation,base,in,an,activity-
based,costing,system;,ideally,,a,measure,of,the,amount,of,activity,that,drives,the,costs,in,an,activity,cost,p
ool.
Activity,variance,,ANS,-
,,The,difference,between,a,revenue,or,cost,item,in,the,flexible,budget,and,the,same,item,in,the,static,plan
ning,budget.,An,activity,variance,is,due,solely,to,the,difference,between,the,actual,level,of,activity,used,in,
the,flexible,budget,and,the,level,of,activity,assumed,in,the,planning,budget.
Activity-based,costing,(ABC),,ANS,-
,,A,costing,method,based,on,activities,that,is,designed,to,provide,managers,with,cost,information,for,strat
egic,and,other,decisions,that,potentially,affect,capacity,and,therefore,fixed,as,well,as,variable,costs.
Activity-based,management,(ABM),,ANS,-
,,A,management,approach,that,focuses,on,managing,activities,as,a,way,of,eliminating,waste,and,reducing,
delays,and,defects.
,Administrative,costs,,ANS,-
,,All,executive,,organizational,,and,clerical,costs,associated,with,the,general,management,of,an,organizati
on,rather,than,with,manufacturing,or,selling.
Allocation,base,,ANS,-,,A,measure,of,activity,such,as,direct,labor-hours,or,machine-
hours,that,is,used,to,assign,costs,to,cost,objects.
Avoidable,cost,,ANS,-
,,A,cost,that,can,be,eliminated,by,choosing,one,alternative,over,another,in,a,decision.,This,term,is,synony
mous,with,differential,cost,and,relevant,cost.
Batch-level,activities,,ANS,-
,,Activities,that,are,performed,each,time,a,batch,of,goods,is,handled,or,processed,,regardless,of,how,man
y,units,are,in,the,batch.,The,amount,of,resource,consumed,depends,on,the,number,of,batches,run,rather,
than,on,the,number,of,units,in,the,batch.
Benchmarking,,ANS,-
,,A,systematic,approach,to,identifying,the,activities,with,the,greatest,potential,for,improvement.
Bill,of,materials,,ANS,-
,,A,document,that,shows,the,quantity,of,each,type,of,direct,material,required,to,make,a,product.
Bottleneck,,ANS,-
,,A,machine,or,some,other,part,of,a,process,that,limits,the,total,output,of,the,entire,system.
Break-even,point,,ANS,-,,The,level,of,sales,at,which,profit,is,zero.
Budget,,ANS,-,,A,detailed,plan,for,the,future,that,is,usually,expressed,in,formal,quantitative,terms.
Capital,budgeting,,ANS,-,,The,process,of,planning,significant,investments,in,projects,that,have,long-
term,implications,such,as,the,purchase,of,new,equipment,or,the,introduction,of,a,new,product.
, Cash,budget,,ANS,-
,,A,detailed,plan,showing,how,cash,resources,will,be,acquired,and,used,over,a,specific,time,period.
Committed,fixed,costs,,ANS,-
,,Investments,in,facilities,,equipment,,and,basic,organizational,structure,that,can't,be,significantly,reduced
,even,for,short,periods,of,time,without,making,fundamental,changes.
Common,cost,,ANS,-
,,A,cost,that,is,incurred,to,support,a,number,of,cost,objects,but,that,cannot,be,traced,to,them,individually.
,For,example,,the,wage,cost,of,the,pilot,of,a,747,airliner,is,a,common,cost,of,all,of,the,passengers,on,the,ai
rcraft.,Without,the,pilot,,there,would,be,no,flight,and,no,passengers.,But,no,part,of,the,pilot's,wage,is,cau
sed,by,any,one,passenger,taking,the,flight.
Common,fixed,cost,,ANS,-
,,A,fixed,cost,that,supports,more,than,one,business,segment,,but,is,not,traceable,in,whole,or,in,part,to,any
,one,of,the,business,segments.
Constraint,,ANS,-
,,A,limitation,under,which,a,company,must,operate,,such,as,limited,available,machine,time,or,raw,materia
ls,,that,restricts,the,company's,ability,to,satisfy,demand.
Contribution,approach,,ANS,-
,,An,income,statement,format,that,organizes,costs,by,their,behavior.,Costs,are,separated,into,variable,and
,fixed,categories,rather,than,being,separated,into,product,and,period,costs,for,external,reporting,purpose
s
Contribution,margin,,ANS,-
,,The,amount,remaining,from,sales,revenues,after,all,variable,expenses,have,been,deducted.
Contribution,margin,ratio,(CM,ratio),,ANS,-,,A,ratio,computed,by,dividing,contribution,margin,by,sales.
Control,,ANS,-
,,The,process,of,gathering,feedback,to,ensure,that,a,plan,is,being,properly,executed,or,modified,as,circum
stances,change.
QUIZ AND ANSWERS 2024 - 2025
Absorption,costing,,ANS,-,,A,costing,method,that,includes,all,manufacturing,costs—
direct,materials,,direct,labor,,and,both,variable,and,fixed,manufacturing,overhead—in,unit,product,costs.
Activity,,ANS,-,,An,event,that,causes,the,consumption,of,overhead,resources,in,an,organization.
Activity,base,,ANS,-
,,A,measure,of,whatever,causes,the,incurrence,of,a,variable,cost.,For,example,,the,total,cost,of,surgical,glo
ves,in,a,hospital,will,increase,as,the,number,of,surgeries,increases.,Therefore,,the,number,of,surgeries,is,t
he,activity,base,that,explains,the,total,cost,of,surgical,gloves.
Activity,cost,pool,,ANS,-
,,A,"bucket",in,which,costs,are,accumulated,that,relate,to,a,single,activity,measure,in,an,activity-
based,costing,system.
Activity,measure,,ANS,-,,An,allocation,base,in,an,activity-
based,costing,system;,ideally,,a,measure,of,the,amount,of,activity,that,drives,the,costs,in,an,activity,cost,p
ool.
Activity,variance,,ANS,-
,,The,difference,between,a,revenue,or,cost,item,in,the,flexible,budget,and,the,same,item,in,the,static,plan
ning,budget.,An,activity,variance,is,due,solely,to,the,difference,between,the,actual,level,of,activity,used,in,
the,flexible,budget,and,the,level,of,activity,assumed,in,the,planning,budget.
Activity-based,costing,(ABC),,ANS,-
,,A,costing,method,based,on,activities,that,is,designed,to,provide,managers,with,cost,information,for,strat
egic,and,other,decisions,that,potentially,affect,capacity,and,therefore,fixed,as,well,as,variable,costs.
Activity-based,management,(ABM),,ANS,-
,,A,management,approach,that,focuses,on,managing,activities,as,a,way,of,eliminating,waste,and,reducing,
delays,and,defects.
,Administrative,costs,,ANS,-
,,All,executive,,organizational,,and,clerical,costs,associated,with,the,general,management,of,an,organizati
on,rather,than,with,manufacturing,or,selling.
Allocation,base,,ANS,-,,A,measure,of,activity,such,as,direct,labor-hours,or,machine-
hours,that,is,used,to,assign,costs,to,cost,objects.
Avoidable,cost,,ANS,-
,,A,cost,that,can,be,eliminated,by,choosing,one,alternative,over,another,in,a,decision.,This,term,is,synony
mous,with,differential,cost,and,relevant,cost.
Batch-level,activities,,ANS,-
,,Activities,that,are,performed,each,time,a,batch,of,goods,is,handled,or,processed,,regardless,of,how,man
y,units,are,in,the,batch.,The,amount,of,resource,consumed,depends,on,the,number,of,batches,run,rather,
than,on,the,number,of,units,in,the,batch.
Benchmarking,,ANS,-
,,A,systematic,approach,to,identifying,the,activities,with,the,greatest,potential,for,improvement.
Bill,of,materials,,ANS,-
,,A,document,that,shows,the,quantity,of,each,type,of,direct,material,required,to,make,a,product.
Bottleneck,,ANS,-
,,A,machine,or,some,other,part,of,a,process,that,limits,the,total,output,of,the,entire,system.
Break-even,point,,ANS,-,,The,level,of,sales,at,which,profit,is,zero.
Budget,,ANS,-,,A,detailed,plan,for,the,future,that,is,usually,expressed,in,formal,quantitative,terms.
Capital,budgeting,,ANS,-,,The,process,of,planning,significant,investments,in,projects,that,have,long-
term,implications,such,as,the,purchase,of,new,equipment,or,the,introduction,of,a,new,product.
, Cash,budget,,ANS,-
,,A,detailed,plan,showing,how,cash,resources,will,be,acquired,and,used,over,a,specific,time,period.
Committed,fixed,costs,,ANS,-
,,Investments,in,facilities,,equipment,,and,basic,organizational,structure,that,can't,be,significantly,reduced
,even,for,short,periods,of,time,without,making,fundamental,changes.
Common,cost,,ANS,-
,,A,cost,that,is,incurred,to,support,a,number,of,cost,objects,but,that,cannot,be,traced,to,them,individually.
,For,example,,the,wage,cost,of,the,pilot,of,a,747,airliner,is,a,common,cost,of,all,of,the,passengers,on,the,ai
rcraft.,Without,the,pilot,,there,would,be,no,flight,and,no,passengers.,But,no,part,of,the,pilot's,wage,is,cau
sed,by,any,one,passenger,taking,the,flight.
Common,fixed,cost,,ANS,-
,,A,fixed,cost,that,supports,more,than,one,business,segment,,but,is,not,traceable,in,whole,or,in,part,to,any
,one,of,the,business,segments.
Constraint,,ANS,-
,,A,limitation,under,which,a,company,must,operate,,such,as,limited,available,machine,time,or,raw,materia
ls,,that,restricts,the,company's,ability,to,satisfy,demand.
Contribution,approach,,ANS,-
,,An,income,statement,format,that,organizes,costs,by,their,behavior.,Costs,are,separated,into,variable,and
,fixed,categories,rather,than,being,separated,into,product,and,period,costs,for,external,reporting,purpose
s
Contribution,margin,,ANS,-
,,The,amount,remaining,from,sales,revenues,after,all,variable,expenses,have,been,deducted.
Contribution,margin,ratio,(CM,ratio),,ANS,-,,A,ratio,computed,by,dividing,contribution,margin,by,sales.
Control,,ANS,-
,,The,process,of,gathering,feedback,to,ensure,that,a,plan,is,being,properly,executed,or,modified,as,circum
stances,change.
