WGU C253 ADVANCED MANAGERIAL
ACCOUNTING2024-2026 EXAM QUESTIONS AND
ANSWERS, RATED A
Financial accounting - CORRECT ANSWER ✔️
concerned with reporting financial information to external
parties (stockholders, creditors, and regulators)
Managerial accounting - CORRECT ANSWER ✔️
concerned with providing information to managers within
an organization so that they can formulate plans, control
operations, and make decisions
Purposes of cost classification:
-assigning costs to cost objects
-predicting cost behavior
-preparing financial statements - CORRECT ANSWER ✔️
assigning costs to cost objects:
-direct cost
-indirect cost
predicting cost behavior:
-variable cost
-fixed cost
preparing financial statements
, -product cost
-period cost
Direct costs - CORRECT ANSWER ✔️ costs that can be
easily and conveniently traced to a unit of product or other
cost object
ex: direct material, direct labor
Indirect labor - CORRECT ANSWER ✔️ costs that cannot
be easily and conveniently traced to a unit of product or
other cost object
ex: manufacturing overhead
What are the three basic manufacturing cost categories? -
CORRECT ANSWER ✔️ Direct materials
Direct labor
Manufacturing overhead
Direct materials: - CORRECT ANSWER ✔️ raw materials
that become an integral part of the product and that can
be conveniently traced directly to it
ex: a radio installed in an automobile
ACCOUNTING2024-2026 EXAM QUESTIONS AND
ANSWERS, RATED A
Financial accounting - CORRECT ANSWER ✔️
concerned with reporting financial information to external
parties (stockholders, creditors, and regulators)
Managerial accounting - CORRECT ANSWER ✔️
concerned with providing information to managers within
an organization so that they can formulate plans, control
operations, and make decisions
Purposes of cost classification:
-assigning costs to cost objects
-predicting cost behavior
-preparing financial statements - CORRECT ANSWER ✔️
assigning costs to cost objects:
-direct cost
-indirect cost
predicting cost behavior:
-variable cost
-fixed cost
preparing financial statements
, -product cost
-period cost
Direct costs - CORRECT ANSWER ✔️ costs that can be
easily and conveniently traced to a unit of product or other
cost object
ex: direct material, direct labor
Indirect labor - CORRECT ANSWER ✔️ costs that cannot
be easily and conveniently traced to a unit of product or
other cost object
ex: manufacturing overhead
What are the three basic manufacturing cost categories? -
CORRECT ANSWER ✔️ Direct materials
Direct labor
Manufacturing overhead
Direct materials: - CORRECT ANSWER ✔️ raw materials
that become an integral part of the product and that can
be conveniently traced directly to it
ex: a radio installed in an automobile
