WGU D252 TASK 2 PROJECT PREP GUIDE
2026 CORE COMPETENCY BREAKDOWN
AND SOLVED ELEMENTS
◉ 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.
Controllable 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.
Answer: Uncontrollable costs should not be included in the
performance evaluation measure of a profit center manager.
◉ Which budget should include the expected cost of supplies used
by the office staff of the corporate headquarters?
Production budget
Direct materials budget
, Sales budget
Administrative expense budget
Answer: Administrative expense budget
◉ Which items are uncontrollable, external variables that make it
difficult to forecast the level of sales?
Inventory level and product management
Selling price and sales effort
Customer tastes and economic conditions
Direct labor and advertising expenditures
Answer: Customer tastes and economic conditions
◉ What is the correct sequence of budgets in a manufacturing
business?
Direct materials, sales, production
Sales, production, direct materials
Production, direct materials, sales
Sales, direct materials, production
Answer: Sales, production, direct materials
◉ Which type of business organization has a major focus on direct
materials, direct labor, and overhead?
2026 CORE COMPETENCY BREAKDOWN
AND SOLVED ELEMENTS
◉ 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.
Controllable 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.
Answer: Uncontrollable costs should not be included in the
performance evaluation measure of a profit center manager.
◉ Which budget should include the expected cost of supplies used
by the office staff of the corporate headquarters?
Production budget
Direct materials budget
, Sales budget
Administrative expense budget
Answer: Administrative expense budget
◉ Which items are uncontrollable, external variables that make it
difficult to forecast the level of sales?
Inventory level and product management
Selling price and sales effort
Customer tastes and economic conditions
Direct labor and advertising expenditures
Answer: Customer tastes and economic conditions
◉ What is the correct sequence of budgets in a manufacturing
business?
Direct materials, sales, production
Sales, production, direct materials
Production, direct materials, sales
Sales, direct materials, production
Answer: Sales, production, direct materials
◉ Which type of business organization has a major focus on direct
materials, direct labor, and overhead?
