2025/2026 Principles of Financial and Managerial Accounting - D196 WGU Assessment Exam with 175+ Questions and Verified Rationalized Answers 100% Pass Score

Principles of Financial and Managerial Accounting - D196 WGU
Assessment Exam with 175+ Questions and Verified Rationalized Answers
100% Pass Score




1. the production budget: Sales budget + ending finished goods inventory - begin-
b b b b b b b b b b b




ning finished goods inventory
b b b b




2. direct materials production budget: Production budget × direct materials peruni
b b b b b b b b b b




t

3. the direct materials purchases budget: Direct materials production budget +en
b b b b b b b b b b




ding direct materials inventory - beginning direct materials inventory
b b b b b b b b




4. Cash collected from customers: (current period revenue × current period col-
b b b b b b b b b b




lection rate) + cash collected from previous period sales
b b b b b b b b b




5. Cash payments to suppliers: (current period purchases × current period pay-
b b b b b b b b b b




ment rate) + cash paid on previous period purchases
b b b b b b b b b




6. Cost Variance: Difference between actual costs and budgeted costs
b b b b b b b b




7. Contribution Margin: = Sales Revenue - Variable Costs b b b b b b b




The difference between total sales and variable costs; the portion of sales revenueava
b b b b b b b b b b b b b




ilable to cover fixed costs and provide a profit.
b b b b b b b b




8. Target Income: = Sales Revenue - Variable Costs -
b b b b b b b b


1b/b10

,Fixed CostsA profit level desired by management.
b b b b b b b b




9. At break-even: Target income = 0
b b b b b




10. Sales Revenue: = Sales Price x Number of Units
b b b b b b b b




11. Variable Costs: = Variable Cost per Unit x Number of Units
b b b b b b b b b b




Costs that change in total in direct proportion to changes in activity level.
b b b b b b b b b b b b




12. Variable Cost Ratio x Sales Revenue: Variable Costs
b b b b b b b




13. Unit-

level activities: Activities that take place each time a unit of product isproduced.
b b b b b b b b b b b b b




14. Batch-

level activities: Activities that take place in order to support a batch orproduction ru
b b b b b b b b b b b b b b




n, regardless of the size of the batch.
b b b b b b b




15. Product-

line Activities: Activities that take place in order to support a productline, regardless
b b b b b b b b b b b b b b




of the number of batches or individual units produced.
b b b b b b b b




16. cost pool: Total cost being generated by a specific overhead cost activity.
b b b b b b b b b b b




17. cost driver: A numerical measure used to reflect the amount of a specific costtha
b b b b b b b b b b b b b b




t is associated with a particular activity
b b b b b b




18. Activity rate: The amount of the estimated cost pool divided by the estimatednu
b b b b b b b b b b b b b




2b/b10

, mber of cost driver events
b b b b




19. How do expenses impact the accounting equation?: Expenses decreaseown
b b b b b b b b b




ers' equityb




20. Purpose of the accounting cycle?: To turn information about transactions intofin
b b b b b b b b b b b




ancial statements b




21. How is gross profit computed?: Sales minus cost of good sold
b b b b b b b b b b




22. Which type of account is retained earnings?: Equity
b b b b b b b




3b/b10