WGU D101 Cost and Managerial
Accounting Exam QUESTIONS AND
CORRECT ANSWERS
Actual Manufacturing Overhead - CORRECT ANSWER Manufacturing costs other than direct
materials and direct labor
Applied Manufacturing Overhead - CORRECT ANSWER The amount of the manufacturing
overhead that is assigned to the goods produced; this is usually done by using a predetermined annual
overhead rate
Batch-level Activities - CORRECT ANSWER Activities that take place to support a batch or
production run, regardless of the size of the batch
Beginning Work-in-process Inventory - CORRECT ANSWER The ending-work-in-process
inventory that is carried over from the last accounting period to the current accounting period
Break-even Point - CORRECT ANSWER The amount of sales at which total costs of the
number of units sold equal total revenues; the point at which there is no profit or loss
Budgeted Production in Units - CORRECT ANSWER The budgeted number of units to be
produced in a period, taking into consideration the sales volume, the number of units in beginning
inventory, and the number of units required to be in ending inventory
Budgeted Sales in Dollars - CORRECT ANSWER The result when the budgeted sales in units
is multiplied by the unit sales prices for each product budgeted to be sold in the budget for the next
year or the next period
Budgeted Sales in Units - CORRECT ANSWER Information in the sales budget that feeds
directly into the production budget, from which the direct materials and direct labor budgets are
created
Common Costs - CORRECT ANSWER Overhead costs like executive salaries or property
taxes that cannot be attributed to and are not the responsibility of specific products, departments, or
business segments
, Contribution Margin - CORRECT ANSWER The difference between total sales and variable
costs; the portion of sales revenue available to cover fixed costs and provide a profit
Contribution Margin Ratio - CORRECT ANSWER The percentage of net sales revenue left
after variable costs are deducted; the contribution margin divided by net sales revenue
Conversion Costs - CORRECT ANSWER The costs of converting raw materials to finished
products; these include direct labor and manufacturing overhead costs
Cost Behavior - CORRECT ANSWER The way a cost is affected by changes in activity levels
Cost Driver - CORRECT ANSWER Numerical measure used to reflect the amount of a
specific cost associated with a particular activity
Cost Objects - CORRECT ANSWER A product or division for which costs are accumulated
and tracked
Cost Pool - CORRECT ANSWER Total cost being generated by a specific overhead cost
activity
Cost of Goods Manufactured - CORRECT ANSWER Total of all manufacturing costs
Cost of Goods Manufactured Schedule - CORRECT ANSWER A schedule supporting the
income statement that summarizes the total cost of goods manufactured and transferred out of the
work-inprocess inventory account during a period; these costs include direct materials, direct labor,
and applied manufacturing overhead
Cost of Goods Sold - CORRECT ANSWER Cost of products sold in a company, including
costs of materials used to create product and labor costs
Cost-volume-profit (CVP) Analysis - CORRECT ANSWER Techniques for determining how
changes in revenues, costs, and level of activity affect the profitability of an organization
Accounting Exam QUESTIONS AND
CORRECT ANSWERS
Actual Manufacturing Overhead - CORRECT ANSWER Manufacturing costs other than direct
materials and direct labor
Applied Manufacturing Overhead - CORRECT ANSWER The amount of the manufacturing
overhead that is assigned to the goods produced; this is usually done by using a predetermined annual
overhead rate
Batch-level Activities - CORRECT ANSWER Activities that take place to support a batch or
production run, regardless of the size of the batch
Beginning Work-in-process Inventory - CORRECT ANSWER The ending-work-in-process
inventory that is carried over from the last accounting period to the current accounting period
Break-even Point - CORRECT ANSWER The amount of sales at which total costs of the
number of units sold equal total revenues; the point at which there is no profit or loss
Budgeted Production in Units - CORRECT ANSWER The budgeted number of units to be
produced in a period, taking into consideration the sales volume, the number of units in beginning
inventory, and the number of units required to be in ending inventory
Budgeted Sales in Dollars - CORRECT ANSWER The result when the budgeted sales in units
is multiplied by the unit sales prices for each product budgeted to be sold in the budget for the next
year or the next period
Budgeted Sales in Units - CORRECT ANSWER Information in the sales budget that feeds
directly into the production budget, from which the direct materials and direct labor budgets are
created
Common Costs - CORRECT ANSWER Overhead costs like executive salaries or property
taxes that cannot be attributed to and are not the responsibility of specific products, departments, or
business segments
, Contribution Margin - CORRECT ANSWER The difference between total sales and variable
costs; the portion of sales revenue available to cover fixed costs and provide a profit
Contribution Margin Ratio - CORRECT ANSWER The percentage of net sales revenue left
after variable costs are deducted; the contribution margin divided by net sales revenue
Conversion Costs - CORRECT ANSWER The costs of converting raw materials to finished
products; these include direct labor and manufacturing overhead costs
Cost Behavior - CORRECT ANSWER The way a cost is affected by changes in activity levels
Cost Driver - CORRECT ANSWER Numerical measure used to reflect the amount of a
specific cost associated with a particular activity
Cost Objects - CORRECT ANSWER A product or division for which costs are accumulated
and tracked
Cost Pool - CORRECT ANSWER Total cost being generated by a specific overhead cost
activity
Cost of Goods Manufactured - CORRECT ANSWER Total of all manufacturing costs
Cost of Goods Manufactured Schedule - CORRECT ANSWER A schedule supporting the
income statement that summarizes the total cost of goods manufactured and transferred out of the
work-inprocess inventory account during a period; these costs include direct materials, direct labor,
and applied manufacturing overhead
Cost of Goods Sold - CORRECT ANSWER Cost of products sold in a company, including
costs of materials used to create product and labor costs
Cost-volume-profit (CVP) Analysis - CORRECT ANSWER Techniques for determining how
changes in revenues, costs, and level of activity affect the profitability of an organization
