D196 pre assessment :Principles of
Financial and Managerial Accounting
(Latest update 2026- 2027) Questions and
Answers 100% Correct {GRADE A} -WGU
How does a classified balance sheet provide useful information to a decision maker?
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point in time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. - correct answer It distinguishes
between current and long-term assets.
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities - correct answer Sales minus cost of goods sold
How is overhead allocated in an ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct labor hours
You Selected
Cost pool multiplied by number of cost driver events
, D196 pre assessment :Principles of
Financial and Managerial Accounting
(Latest update 2026- 2027) Questions and
Answers 100% Correct {GRADE A} -WGU
Activity rate multiplied by number of cost driver events - correct answer Activity rate
multiplied by number of cost driver events
How is the production cost per unit computed in a process costing system?
Amount of overhead cost divided by the number of units completed during a
particular period of time
Amount of direct materials cost divided by the quantity of direct materials used
during a particular period of time
Amount of total production cost divided by the number of units completed during a
particular period of time
Amount of direct labor cost divided by the number of direct labor hours used during
a particular period of time - correct answer Amount of total production cost divided
by the number of units completed during a particular period of time
In a job order costing system, what is the proper accounting for a product cost?
It is reported as a part of cost of goods sold.
It is reported as a part of administrative expenses.
It is reported as a part of general expenses.
It is reported as an expense when it occurs. - correct answer It is reported as a part of
cost of goods sold.
, D196 pre assessment :Principles of
Financial and Managerial Accounting
(Latest update 2026- 2027) Questions and
Answers 100% Correct {GRADE A} -WGU
In an ABC system, which name is given to a numerical measure reflecting the amount
of a cost associated with a particular overhead cost activity?
Cost system
You Selected
Cost pool
Cost metric
Cost driver - correct answer Cost driver
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?
Direct costs should not be included in the performance evaluation measure of a profit
center manager.
Uncontrollable costs should not be included in the performance evaluation measure
of a profit center manager.
Revenues should not be included in the performance evaluation measure of a profit
center manager.
Controllable costs should not be included in the performance evaluation measure of
a profit center manager. - correct answer Uncontrollable costs should not be included
in the performance evaluation measure of a profit center manager.
Financial and Managerial Accounting
(Latest update 2026- 2027) Questions and
Answers 100% Correct {GRADE A} -WGU
How does a classified balance sheet provide useful information to a decision maker?
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point in time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. - correct answer It distinguishes
between current and long-term assets.
How is gross profit computed?
Total revenues minus total expenses
Sales minus cost of goods sold
Accounts receivable minus accounts payable
Total assets minus total liabilities - correct answer Sales minus cost of goods sold
How is overhead allocated in an ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct labor hours
You Selected
Cost pool multiplied by number of cost driver events
, D196 pre assessment :Principles of
Financial and Managerial Accounting
(Latest update 2026- 2027) Questions and
Answers 100% Correct {GRADE A} -WGU
Activity rate multiplied by number of cost driver events - correct answer Activity rate
multiplied by number of cost driver events
How is the production cost per unit computed in a process costing system?
Amount of overhead cost divided by the number of units completed during a
particular period of time
Amount of direct materials cost divided by the quantity of direct materials used
during a particular period of time
Amount of total production cost divided by the number of units completed during a
particular period of time
Amount of direct labor cost divided by the number of direct labor hours used during
a particular period of time - correct answer Amount of total production cost divided
by the number of units completed during a particular period of time
In a job order costing system, what is the proper accounting for a product cost?
It is reported as a part of cost of goods sold.
It is reported as a part of administrative expenses.
It is reported as a part of general expenses.
It is reported as an expense when it occurs. - correct answer It is reported as a part of
cost of goods sold.
, D196 pre assessment :Principles of
Financial and Managerial Accounting
(Latest update 2026- 2027) Questions and
Answers 100% Correct {GRADE A} -WGU
In an ABC system, which name is given to a numerical measure reflecting the amount
of a cost associated with a particular overhead cost activity?
Cost system
You Selected
Cost pool
Cost metric
Cost driver - correct answer Cost driver
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?
Direct costs should not be included in the performance evaluation measure of a profit
center manager.
Uncontrollable costs should not be included in the performance evaluation measure
of a profit center manager.
Revenues should not be included in the performance evaluation measure of a profit
center manager.
Controllable costs should not be included in the performance evaluation measure of
a profit center manager. - correct answer Uncontrollable costs should not be included
in the performance evaluation measure of a profit center manager.
