WGU D101 Cost and Managerial
Accounting Exam Questions and Answers
Graded A+
What is a price taker? - Correct answer-A company that has to accept the price that
the market sets for a good. They have no influence over setting the price.
What is a price maker? - Correct answer-a firm possessing the power to set the
price within the market. They still need to track all costs in order to make sure they
are making an adequate return.
What is the major purpose and use of job order costing?
a. To create a system that tracks both manufacturing and period costs and assigns
both to products
b. To create a system in which manufacturing costs are tracked by period instead of
by products
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,c. To create a system in which manufacturing costs are accumulated by separate
product orders or batches
d. To create a system that is exclusively used by price makers and not by price
takers - Correct answer-c.
Which statement is true?
a. Having accurate product or service cost information is important for both price
takers and price makers.
b. Having accurate product or service cost information is important for price
takers, but not price makers.
c. Having accurate produce or service cost information is not important for either
price takers or price makers.
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,d. Having accurate product or service cost information is important for price
makers, but not price takers. - Correct answer-a.
Two competitors exist in the same industry. The first company has accurate product
cost information while the second company does not.
What is the reason behind why the first company is more successful than the
second?
a. With accurate job cost information, the first company can undercut the second
company's prices, thus driving the second company out of business.
b. With accurate job cost information, the first company can set prices that
guarantee making a profit, can understand which costs need to be worked on, and
can determine which actions can be taken to make the company more efficient and
profitable.
c. With accurate job cost information, the first company can pay higher wages to
employees, thus motivating them more than the employees of the second company.
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, d. With accurate job cost information, the first company can set prices higher than
the second company, thus earning higher profits. - Correct answer-b.
Job order costing is appropriate when which two conditions exist?
a. Products produced are all the same, and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from each other, and the manufacturing processes
used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are the
same for different products.
d. Products produced are all the same, but the manufacturing processes used to
produce them are different for different products. - Correct answer-b.
Why is having accurate product cost information important?
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Accounting Exam Questions and Answers
Graded A+
What is a price taker? - Correct answer-A company that has to accept the price that
the market sets for a good. They have no influence over setting the price.
What is a price maker? - Correct answer-a firm possessing the power to set the
price within the market. They still need to track all costs in order to make sure they
are making an adequate return.
What is the major purpose and use of job order costing?
a. To create a system that tracks both manufacturing and period costs and assigns
both to products
b. To create a system in which manufacturing costs are tracked by period instead of
by products
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,c. To create a system in which manufacturing costs are accumulated by separate
product orders or batches
d. To create a system that is exclusively used by price makers and not by price
takers - Correct answer-c.
Which statement is true?
a. Having accurate product or service cost information is important for both price
takers and price makers.
b. Having accurate product or service cost information is important for price
takers, but not price makers.
c. Having accurate produce or service cost information is not important for either
price takers or price makers.
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,d. Having accurate product or service cost information is important for price
makers, but not price takers. - Correct answer-a.
Two competitors exist in the same industry. The first company has accurate product
cost information while the second company does not.
What is the reason behind why the first company is more successful than the
second?
a. With accurate job cost information, the first company can undercut the second
company's prices, thus driving the second company out of business.
b. With accurate job cost information, the first company can set prices that
guarantee making a profit, can understand which costs need to be worked on, and
can determine which actions can be taken to make the company more efficient and
profitable.
c. With accurate job cost information, the first company can pay higher wages to
employees, thus motivating them more than the employees of the second company.
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, d. With accurate job cost information, the first company can set prices higher than
the second company, thus earning higher profits. - Correct answer-b.
Job order costing is appropriate when which two conditions exist?
a. Products produced are all the same, and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from each other, and the manufacturing processes
used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are the
same for different products.
d. Products produced are all the same, but the manufacturing processes used to
produce them are different for different products. - Correct answer-b.
Why is having accurate product cost information important?
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