WGU D559 Advanced Managerial Accounting: Practice Test 1

(Units 1-7)

50 questions

1. A cost that can be easily and conveniently traced to a cost object is a:

A. Indirect cost

B. Direct cost

C. Common cost

D. Sunk cost

Correct Answer: B. Direct cost

Rationale: Indirect costs must be allocated.

2. Product costs become expenses on the income statement when