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WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM VERSION 2
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
The sales and administrative expense budget includes which
expenses? - ANSWER-All expenses besides production-related
expenses
The manufacturing overhead cost budget includes which
manufacturing costs? - ANSWER-Both fixed and variable
manufacturing overhead costs
The production budget supplies the information required for which
other budget in the master budgeting process? - ANSWER-Direct
materials budget
The production budget supplies information for the direct
materials budget, direct labor budget, and manufacturing
overhead budget.
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Segment managers should be evaluated on which items included
in a budget? - ANSWER-Only the items they can control or
influence
What is the segment margin? - ANSWER-The difference between
segment revenue and direct segment costs
Segment margin is the difference between segment revenue and
direct segment costs.
Which items does a manager have control over in a cost center? -
ANSWER-Costs only
Which items does a manager have control over in a profit center?
- ANSWER-Costs and revenues
What is the concept behind responsibility accounting in
management accounting? - ANSWER-A manager should be
evaluated only on factors he or she can directly control
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What is the first thing an accountant should do to develop a
master budget? - ANSWER-Prepare a sales budget
Two of the three factors to be considered in preparing a
production budget include the desired amount of ending inventory
and the amount of inventory already on hand in the beginning
inventory.
What is the third factor required to prepare a production budget? -
ANSWER-Projected sales volume
How is a cost variance computed for a corporate budget? -
ANSWER-A cost variance is the difference between the actual
cost and the budgeted cost.
The production supervisor for Hannah Company is preparing for
her quarterly meeting with the chief financial officer (CFO). The
main topic of discussion will be production worker hiring needs for
the upcoming months. Past experience has taught the production
supervisor that the CFO will always insist on seeing a detailed
production budget before even considering spending money to
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hire new workers. The production supervisor is assembling her
numbers.
What factors should the production supervisor consider in
assembling her production budget? - ANSWER-Projected sales,
desired ending inventory, and amount of beginning inventory
Dennis Rodman is the manager of Segment C in Chicago
Company. Jeannie Train, company CFO, is developing a measure
to evaluate Dennis's quarterly performance. What should Jeannie
keep in mind as she develops a measure to evaluate his
performance? - ANSWER-She should include only controllable
costs in the measure.
What is the meaning of a significant cost variance? - ANSWER-
Corrective action should be taken to eliminate the variance.
What is a profit center? - ANSWER-An organizational unit in
which a manager has responsibility for both costs and revenues
WGU D196 OBJECTIVE ASSESSMENT FINAL EXAM VERSION 2
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
The sales and administrative expense budget includes which
expenses? - ANSWER-All expenses besides production-related
expenses
The manufacturing overhead cost budget includes which
manufacturing costs? - ANSWER-Both fixed and variable
manufacturing overhead costs
The production budget supplies the information required for which
other budget in the master budgeting process? - ANSWER-Direct
materials budget
The production budget supplies information for the direct
materials budget, direct labor budget, and manufacturing
overhead budget.
,2|Page
Segment managers should be evaluated on which items included
in a budget? - ANSWER-Only the items they can control or
influence
What is the segment margin? - ANSWER-The difference between
segment revenue and direct segment costs
Segment margin is the difference between segment revenue and
direct segment costs.
Which items does a manager have control over in a cost center? -
ANSWER-Costs only
Which items does a manager have control over in a profit center?
- ANSWER-Costs and revenues
What is the concept behind responsibility accounting in
management accounting? - ANSWER-A manager should be
evaluated only on factors he or she can directly control
,3|Page
What is the first thing an accountant should do to develop a
master budget? - ANSWER-Prepare a sales budget
Two of the three factors to be considered in preparing a
production budget include the desired amount of ending inventory
and the amount of inventory already on hand in the beginning
inventory.
What is the third factor required to prepare a production budget? -
ANSWER-Projected sales volume
How is a cost variance computed for a corporate budget? -
ANSWER-A cost variance is the difference between the actual
cost and the budgeted cost.
The production supervisor for Hannah Company is preparing for
her quarterly meeting with the chief financial officer (CFO). The
main topic of discussion will be production worker hiring needs for
the upcoming months. Past experience has taught the production
supervisor that the CFO will always insist on seeing a detailed
production budget before even considering spending money to
, 4|Page
hire new workers. The production supervisor is assembling her
numbers.
What factors should the production supervisor consider in
assembling her production budget? - ANSWER-Projected sales,
desired ending inventory, and amount of beginning inventory
Dennis Rodman is the manager of Segment C in Chicago
Company. Jeannie Train, company CFO, is developing a measure
to evaluate Dennis's quarterly performance. What should Jeannie
keep in mind as she develops a measure to evaluate his
performance? - ANSWER-She should include only controllable
costs in the measure.
What is the meaning of a significant cost variance? - ANSWER-
Corrective action should be taken to eliminate the variance.
What is a profit center? - ANSWER-An organizational unit in
which a manager has responsibility for both costs and revenues
