WGU C253 ADVANCED
MANAGERIAL ACCOUNTING,
EXAM QUESTIONS AND ANSWERS
Sales revenue minus variable expenses equals ______
_______. - CORRECT ANSWER ✔️ Contribution margin
In the equation y=a+bX, b denoted the: - CORRECT
ANSWER ✔️ - Slope of the line
- Variable cost per unit of activity
Administration costs include: - CORRECT ANSWER ✔️
Executive compensation ans public relation costs
An income statement focusing on product and period costs
has been prepared using a _______ format, while a(n)
________ format income statement makes a
distiction between fixed and variable costs. - CORRECT
ANSWER ✔️ Traditonal, Contribution
Prior to being recorded on the income statement,
manufacturer's product costs flow through: - CORRECT
ANSWER ✔️ -work in process
-raw materials
-finished goods
,Cost assumptions are reasonably valid within the
________ ________ activity. - CORRECT ANSWER ✔️
Relevant range
T/F a mixed cost has a minimum cost of having a service
available and ready for use - CORRECT ANSWER ✔️
True
T/F when mixed costs are represented by a straight line,
the steeper the slope, the higher the variable cost per unit
- CORRECT ANSWER ✔️ True
Selling and Administrative cost are ________ cost -
CORRECT ANSWER ✔️ direct ot indirect
The revenue obtained from selling one additional unit of
product is called ______ revenue - CORRECT ANSWER
✔️ Marginal
T/F within the relevant range of activity, fixed costs remain
constant in total - CORRECT ANSWER ✔️ True
T/F The relevant range of activity is approximated by a
straight line. - CORRECT ANSWER ✔️
True
, In the equation Y=a+bX, Y is the - CORRECT ANSWER
✔️ Total mixed cost
Nonmanufacturing costs include: - CORRECT ANSWER
✔️ -Company presidents salary
-Sales Commisons
A laptop computer manufacturer would consider the
computers processor chip to be a(n) _____ cost -
CORRECT ANSWER ✔️ Direct Material
Absorption costing - CORRECT ANSWER ✔️ A costing
method that includes all manufacturing costs—direct
materials, direct labor, and both variable and fixed
manufacturing overhead—in unit product costs.
Allocation base - CORRECT ANSWER ✔️ A measure of
activity such as direct labor-hours or machine-hours that is
used to assign costs to cost objects.
Bill of materials - CORRECT ANSWER ✔️ A document
that shows the quantity of each type of direct material
required to make a product.
Cost driver - CORRECT ANSWER ✔️ A factor, such as
MANAGERIAL ACCOUNTING,
EXAM QUESTIONS AND ANSWERS
Sales revenue minus variable expenses equals ______
_______. - CORRECT ANSWER ✔️ Contribution margin
In the equation y=a+bX, b denoted the: - CORRECT
ANSWER ✔️ - Slope of the line
- Variable cost per unit of activity
Administration costs include: - CORRECT ANSWER ✔️
Executive compensation ans public relation costs
An income statement focusing on product and period costs
has been prepared using a _______ format, while a(n)
________ format income statement makes a
distiction between fixed and variable costs. - CORRECT
ANSWER ✔️ Traditonal, Contribution
Prior to being recorded on the income statement,
manufacturer's product costs flow through: - CORRECT
ANSWER ✔️ -work in process
-raw materials
-finished goods
,Cost assumptions are reasonably valid within the
________ ________ activity. - CORRECT ANSWER ✔️
Relevant range
T/F a mixed cost has a minimum cost of having a service
available and ready for use - CORRECT ANSWER ✔️
True
T/F when mixed costs are represented by a straight line,
the steeper the slope, the higher the variable cost per unit
- CORRECT ANSWER ✔️ True
Selling and Administrative cost are ________ cost -
CORRECT ANSWER ✔️ direct ot indirect
The revenue obtained from selling one additional unit of
product is called ______ revenue - CORRECT ANSWER
✔️ Marginal
T/F within the relevant range of activity, fixed costs remain
constant in total - CORRECT ANSWER ✔️ True
T/F The relevant range of activity is approximated by a
straight line. - CORRECT ANSWER ✔️
True
, In the equation Y=a+bX, Y is the - CORRECT ANSWER
✔️ Total mixed cost
Nonmanufacturing costs include: - CORRECT ANSWER
✔️ -Company presidents salary
-Sales Commisons
A laptop computer manufacturer would consider the
computers processor chip to be a(n) _____ cost -
CORRECT ANSWER ✔️ Direct Material
Absorption costing - CORRECT ANSWER ✔️ A costing
method that includes all manufacturing costs—direct
materials, direct labor, and both variable and fixed
manufacturing overhead—in unit product costs.
Allocation base - CORRECT ANSWER ✔️ A measure of
activity such as direct labor-hours or machine-hours that is
used to assign costs to cost objects.
Bill of materials - CORRECT ANSWER ✔️ A document
that shows the quantity of each type of direct material
required to make a product.
Cost driver - CORRECT ANSWER ✔️ A factor, such as
