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WGU D196
WGU D196 Objective Assessment
Principles of Financial & Managerial
Accounting| Qs & As| Grade A| 100%
Correct | (NEW 2025/ 2026)
Whose job is it to make sure that investors are provided with full and fair information
about publicly traded companies?
FASB
AICPA
IASB
SEC - ANS ✓d
How does a classified balance sheet provide useful information to a decision maker?
A.It distinguishes between current and long-term assets
B.It provides data that are not publicly disclosed
C.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time - ANS ✓a
In some companies, the performance measures for profit center managers are heavily
influenced by cost allocations downward from organizational units (such as company
headquarters). Why is this a mistake?
A.Controllable costs should not be included in the performance evaluation measure of a
profit center manager
B.Revenues should not be included in the performance evaluation measure of a profit
center manager
C.Uncontrollable costs should not be included in the performance evaluation measure of
a profit center manager
WGU D196
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WGU D196
D. Direct costs should not be included in the performance evaluation measure of a profit
center manager - ANS ✓c
Which is an example of a product cost?
A.Non-manufacturing personnel costs
B.Rent Expense
C.Office Supplies
D. Raw materials to make a product - ANS ✓d
Which label is given to the cost of wages for factory supervisors?
A. Direct labor
B.Direct materials
C. Manufacturing overhead
D. Administrative expenses - ANS ✓c
A company reports the following data: Price per unit = $20 Variable costs per unit = $12
Fixed costs = $12,000 Given these data, what is the variable cost ratio?
A. 40%
B. 25%
C. 16%
D. 60% - ANS ✓d
If overhead is underapplied, which statement is true?
A.Actual costs exceed applied costs
B.Applied costs exceed actual costs
C.Costs will not be affected
D. Budgeted and applied costs will be equal - ANS ✓a
Which of the following is not an example of a cost driver?
WGU D196
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WGU D196
A.Miles driven
B.Selling costs
C.Machine hours
D. Number of customers - ANS ✓b
Which item is a period cost?
Manufacturing supplies
Overhead directly tied to the production facility
Raw materials
Marketing expense - ANS ✓d
Which overhead allocation method should be used for a trash bag manufacturer?
A. Product-line costing
B. Process costing
C. ABC costing
D . Job order costing - ANS ✓b
For relevant range, which costs are approximately linear within a certain range of
production?
A. Fixed costs
B. Variable costs
C. Stepped costs
D. Mixed costs - ANS ✓b
Which of the following focuses on how a company's activity levels impact profits?
Job order costing
WGU D196
WGU D196
WGU D196 Objective Assessment
Principles of Financial & Managerial
Accounting| Qs & As| Grade A| 100%
Correct | (NEW 2025/ 2026)
Whose job is it to make sure that investors are provided with full and fair information
about publicly traded companies?
FASB
AICPA
IASB
SEC - ANS ✓d
How does a classified balance sheet provide useful information to a decision maker?
A.It distinguishes between current and long-term assets
B.It provides data that are not publicly disclosed
C.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time - ANS ✓a
In some companies, the performance measures for profit center managers are heavily
influenced by cost allocations downward from organizational units (such as company
headquarters). Why is this a mistake?
A.Controllable costs should not be included in the performance evaluation measure of a
profit center manager
B.Revenues should not be included in the performance evaluation measure of a profit
center manager
C.Uncontrollable costs should not be included in the performance evaluation measure of
a profit center manager
WGU D196
, 2
WGU D196
D. Direct costs should not be included in the performance evaluation measure of a profit
center manager - ANS ✓c
Which is an example of a product cost?
A.Non-manufacturing personnel costs
B.Rent Expense
C.Office Supplies
D. Raw materials to make a product - ANS ✓d
Which label is given to the cost of wages for factory supervisors?
A. Direct labor
B.Direct materials
C. Manufacturing overhead
D. Administrative expenses - ANS ✓c
A company reports the following data: Price per unit = $20 Variable costs per unit = $12
Fixed costs = $12,000 Given these data, what is the variable cost ratio?
A. 40%
B. 25%
C. 16%
D. 60% - ANS ✓d
If overhead is underapplied, which statement is true?
A.Actual costs exceed applied costs
B.Applied costs exceed actual costs
C.Costs will not be affected
D. Budgeted and applied costs will be equal - ANS ✓a
Which of the following is not an example of a cost driver?
WGU D196
, 3
WGU D196
A.Miles driven
B.Selling costs
C.Machine hours
D. Number of customers - ANS ✓b
Which item is a period cost?
Manufacturing supplies
Overhead directly tied to the production facility
Raw materials
Marketing expense - ANS ✓d
Which overhead allocation method should be used for a trash bag manufacturer?
A. Product-line costing
B. Process costing
C. ABC costing
D . Job order costing - ANS ✓b
For relevant range, which costs are approximately linear within a certain range of
production?
A. Fixed costs
B. Variable costs
C. Stepped costs
D. Mixed costs - ANS ✓b
Which of the following focuses on how a company's activity levels impact profits?
Job order costing
WGU D196
