D196 WGU - Principles of Financial and Managerial Accounting 2024 -202
Newest Exam/ Complete 180 Actual Exam Questions with Correct Detail
Answers (Verified Answers) Graded A+
1. the production budget Sales budget + ending finished goods invento-
ry - beginning finished goods inventory
2. direct materials production Production budget × direct materials per unit
budget
3. the direct materials pur- Direct materials production budget + ending
chases budget direct materials inventory - beginning direct
materials inventory
4. Cash collected from cus- (current period revenue × current period col-
tomers lection rate) + cash collected from previous
period sales
5. Cash payments to suppli- (current period purchases × current period
ers payment rate) + cash paid on previous period
purchases
6. Cost Variance Difference between actual costs and budgeted
costs
7. Contribution Margin = Sales Revenue - Variable Costs
The difference between total sales and vari-
able costs; the portion of sales revenue avail-
able to cover fixed costs and provide a profit.
8. Target Income = Sales Revenue - Variable Costs - Fixed
Costs
A profit level desired by management.
9. At break-even Target income = 0
10. Sales Revenue = Sales Price x Number of Units
11. Variable Costs = Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion
to changes in activity level.
12. Variable Cost Ratio x Sales Variable Costs
Revenue
, Principles of Financial and Managerial Accounting - D196 WGU
13. Unit-level activities Activities that take place each time a unit of
product is produced.
14. Batch-level activities Activities that take place in order to support a
batch or production run, regardless of the size
of the batch.
15. Product-line Activities Activities that take place in order to support
a product line, regardless of the number of
batches or individual units produced.
16. cost pool Total cost being generated by a specific over-
head cost activity.
17. cost driver A numerical measure used to reflect the
amount of a specific cost that is associated
with a particular activity
18. Activity rate The amount of the estimated cost pool divided
by the estimated number of cost driver events
19. How do expenses impact Expenses decrease owners' equity
the accounting equation?
20. Purpose of the accounting To turn information about transactions into fi-
cycle? nancial statements
21. How is gross profit com- Sales minus cost of good sold
puted?
22. Which type of account is Equity
retained earnings?
23. How does a classified bal- It distinguishes between current and long-term
ance sheet provide useful assets
info to a decision maker?
24. What are the three prima- Planning, controlling, evaluating
ry functions that company
, Principles of Financial and Managerial Accounting - D196 WGU
managers use managerial
accounting info for?
25. How could a period cost As an admin expense
be reported in an income
statement?
26. How are the wages of Selling expense
the cashiers classified in a
merchandising company?
27. What is the label given to Predetermined overhead rate
the quantity computed as
estimated level of activity
28. In a job order costing sys- It is reported as a part of cost of goods sold
tem, what is the proper
accounting for a product
cost?
29. Which item is a period Utility bills to heat the headquarters building
cost?
30. Accounting System The procedures and processes used by a busi-
ness to analyze transactions, handle routine
bookkeeping tasks, and structure information
so it can be used to evaluate the performance
and health of the business.
31. Activity-based Costing A method of attributing overhead costs to prod-
(ABC) ucts based on measurable factors that relate
to activities that create overhead costs.
32. Arm's-length Transaction A transaction in which a buyer and seller act
independently to get the best possible deal.
33. Articulation The interrelationships among the financial
statements.
34. Assets
Newest Exam/ Complete 180 Actual Exam Questions with Correct Detail
Answers (Verified Answers) Graded A+
1. the production budget Sales budget + ending finished goods invento-
ry - beginning finished goods inventory
2. direct materials production Production budget × direct materials per unit
budget
3. the direct materials pur- Direct materials production budget + ending
chases budget direct materials inventory - beginning direct
materials inventory
4. Cash collected from cus- (current period revenue × current period col-
tomers lection rate) + cash collected from previous
period sales
5. Cash payments to suppli- (current period purchases × current period
ers payment rate) + cash paid on previous period
purchases
6. Cost Variance Difference between actual costs and budgeted
costs
7. Contribution Margin = Sales Revenue - Variable Costs
The difference between total sales and vari-
able costs; the portion of sales revenue avail-
able to cover fixed costs and provide a profit.
8. Target Income = Sales Revenue - Variable Costs - Fixed
Costs
A profit level desired by management.
9. At break-even Target income = 0
10. Sales Revenue = Sales Price x Number of Units
11. Variable Costs = Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion
to changes in activity level.
12. Variable Cost Ratio x Sales Variable Costs
Revenue
, Principles of Financial and Managerial Accounting - D196 WGU
13. Unit-level activities Activities that take place each time a unit of
product is produced.
14. Batch-level activities Activities that take place in order to support a
batch or production run, regardless of the size
of the batch.
15. Product-line Activities Activities that take place in order to support
a product line, regardless of the number of
batches or individual units produced.
16. cost pool Total cost being generated by a specific over-
head cost activity.
17. cost driver A numerical measure used to reflect the
amount of a specific cost that is associated
with a particular activity
18. Activity rate The amount of the estimated cost pool divided
by the estimated number of cost driver events
19. How do expenses impact Expenses decrease owners' equity
the accounting equation?
20. Purpose of the accounting To turn information about transactions into fi-
cycle? nancial statements
21. How is gross profit com- Sales minus cost of good sold
puted?
22. Which type of account is Equity
retained earnings?
23. How does a classified bal- It distinguishes between current and long-term
ance sheet provide useful assets
info to a decision maker?
24. What are the three prima- Planning, controlling, evaluating
ry functions that company
, Principles of Financial and Managerial Accounting - D196 WGU
managers use managerial
accounting info for?
25. How could a period cost As an admin expense
be reported in an income
statement?
26. How are the wages of Selling expense
the cashiers classified in a
merchandising company?
27. What is the label given to Predetermined overhead rate
the quantity computed as
estimated level of activity
28. In a job order costing sys- It is reported as a part of cost of goods sold
tem, what is the proper
accounting for a product
cost?
29. Which item is a period Utility bills to heat the headquarters building
cost?
30. Accounting System The procedures and processes used by a busi-
ness to analyze transactions, handle routine
bookkeeping tasks, and structure information
so it can be used to evaluate the performance
and health of the business.
31. Activity-based Costing A method of attributing overhead costs to prod-
(ABC) ucts based on measurable factors that relate
to activities that create overhead costs.
32. Arm's-length Transaction A transaction in which a buyer and seller act
independently to get the best possible deal.
33. Articulation The interrelationships among the financial
statements.
34. Assets
