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WGU C253 ADVANCED MANAGERIAL ACCOUNTING EXAM 2024
ACTUAL EXAM COMPLETE 200 QUESTIONS WITH DETAILED
VERIFIED ANSWERS/ALREADY GRADED A+
A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable
and fixed manufacturing overhead—in unit product costs. - ANSWER ✔✔-Absorption costing
An event that causes the consumption of overhead resources in an organization. - ANSWER ✔✔-Activity
A measure of whatever causes the incurrence of a variable cost. For example, the total cost of surgical
gloves in a hospital will increase as the number of surgeries increases. Therefore, the number of surgeries
is the activity base that explains the total cost of surgical gloves. - ANSWER ✔✔-Activity base
A "bucket" in which costs are accumulated that relate to a single activity measure in an activity-based
costing system. - ANSWER ✔✔-Activity cost pool
An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that
drives the costs in an activity cost pool. - ANSWER ✔✔-Activity measure
The difference between a revenue or cost item in the flexible budget and the same item in the static
planning budget. An activity variance is due solely to the difference between the actual level of activity
used in the flexible budget and the level of activity assumed in the planning budget. - ANSWER ✔✔-
Activity variance
A costing method based on activities that is designed to provide managers with cost information for
strategic and other decisions that potentially affect capacity and therefore fixed as well as variable costs. -
ANSWER ✔✔-Activity-based costing (ABC)
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A management approach that focuses on managing activities as a way of eliminating waste and reducing
delays and defects. - ANSWER ✔✔-Activity-based management (ABM)
All executive, organizational, and clerical costs associated with the general management of an
organization rather than with manufacturing or selling. - ANSWER ✔✔-Administrative costs
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost
objects. - ANSWER ✔✔-Allocation base
A cost that can be eliminated by choosing one alternative over another in a decision. This term is
synonymous with differential cost and relevant cost. - ANSWER ✔✔-Avoidable cost
Activities that are performed each time a batch of goods is handled or processed, regardless of how many
units are in the batch. The amount of resource consumed depends on the number of batches run rather
than on the number of units in the batch. - ANSWER ✔✔-Batch-level activities
A systematic approach to identifying the activities with the greatest potential for improvement. -
ANSWER ✔✔-Benchmarking
A document that shows the quantity of each type of direct material required to make a product. -
ANSWER ✔✔-Bill of materials
A machine or some other part of a process that limits the total output of the entire system. - ANSWER
✔✔-Bottleneck
The level of sales at which profit is zero. - ANSWER ✔✔-Break-even point
A detailed plan for the future that is usually expressed in formal quantitative terms. - ANSWER ✔✔-
Budget
The process of planning significant investments in projects that have long-term implications such as the
purchase of new equipment or the introduction of a new product. - ANSWER ✔✔-Capital budgeting
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
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A detailed plan showing how cash resources will be acquired and used over a specific time period. -
ANSWER ✔✔-Cash budget
Investments in facilities, equipment, and basic organizational structure that can't be significantly reduced
even for short periods of time without making fundamental changes. - ANSWER ✔✔-Committed fixed
costs
A cost that is incurred to support a number of cost objects but that cannot be traced to them individually.
For example, the wage cost of the pilot of a 747 airliner is a common cost of all of the passengers on the
aircraft. Without the pilot, there would be no flight and no passengers. But no part of the pilot's wage is
caused by any one passenger taking the flight. - ANSWER ✔✔-Common cost
A fixed cost that supports more than one business segment, but is not traceable in whole or in part to any
one of the business segments. - ANSWER ✔✔-Common fixed cost
A limitation under which a company must operate, such as limited available machine time or raw
materials, that restricts the company's ability to satisfy demand. - ANSWER ✔✔-Constraint
An income statement format that organizes costs by their behavior. Costs are separated into variable and
fixed categories rather than being separated into product and period costs for external reporting purposes
- ANSWER ✔✔-Contribution approach
The amount remaining from sales revenues after all variable expenses have been deducted. - ANSWER
✔✔-Contribution margin
A ratio computed by dividing contribution margin by sales. - ANSWER ✔✔-Contribution margin ratio
(CM ratio)
The process of gathering feedback to ensure that a plan is being properly executed or modified as
circumstances change. - ANSWER ✔✔-Control
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
WGU C253 ADVANCED MANAGERIAL ACCOUNTING EXAM 2024
ACTUAL EXAM COMPLETE 200 QUESTIONS WITH DETAILED
VERIFIED ANSWERS/ALREADY GRADED A+
A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable
and fixed manufacturing overhead—in unit product costs. - ANSWER ✔✔-Absorption costing
An event that causes the consumption of overhead resources in an organization. - ANSWER ✔✔-Activity
A measure of whatever causes the incurrence of a variable cost. For example, the total cost of surgical
gloves in a hospital will increase as the number of surgeries increases. Therefore, the number of surgeries
is the activity base that explains the total cost of surgical gloves. - ANSWER ✔✔-Activity base
A "bucket" in which costs are accumulated that relate to a single activity measure in an activity-based
costing system. - ANSWER ✔✔-Activity cost pool
An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that
drives the costs in an activity cost pool. - ANSWER ✔✔-Activity measure
The difference between a revenue or cost item in the flexible budget and the same item in the static
planning budget. An activity variance is due solely to the difference between the actual level of activity
used in the flexible budget and the level of activity assumed in the planning budget. - ANSWER ✔✔-
Activity variance
A costing method based on activities that is designed to provide managers with cost information for
strategic and other decisions that potentially affect capacity and therefore fixed as well as variable costs. -
ANSWER ✔✔-Activity-based costing (ABC)
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
,2|Page
A management approach that focuses on managing activities as a way of eliminating waste and reducing
delays and defects. - ANSWER ✔✔-Activity-based management (ABM)
All executive, organizational, and clerical costs associated with the general management of an
organization rather than with manufacturing or selling. - ANSWER ✔✔-Administrative costs
A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost
objects. - ANSWER ✔✔-Allocation base
A cost that can be eliminated by choosing one alternative over another in a decision. This term is
synonymous with differential cost and relevant cost. - ANSWER ✔✔-Avoidable cost
Activities that are performed each time a batch of goods is handled or processed, regardless of how many
units are in the batch. The amount of resource consumed depends on the number of batches run rather
than on the number of units in the batch. - ANSWER ✔✔-Batch-level activities
A systematic approach to identifying the activities with the greatest potential for improvement. -
ANSWER ✔✔-Benchmarking
A document that shows the quantity of each type of direct material required to make a product. -
ANSWER ✔✔-Bill of materials
A machine or some other part of a process that limits the total output of the entire system. - ANSWER
✔✔-Bottleneck
The level of sales at which profit is zero. - ANSWER ✔✔-Break-even point
A detailed plan for the future that is usually expressed in formal quantitative terms. - ANSWER ✔✔-
Budget
The process of planning significant investments in projects that have long-term implications such as the
purchase of new equipment or the introduction of a new product. - ANSWER ✔✔-Capital budgeting
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
, 3|Page
A detailed plan showing how cash resources will be acquired and used over a specific time period. -
ANSWER ✔✔-Cash budget
Investments in facilities, equipment, and basic organizational structure that can't be significantly reduced
even for short periods of time without making fundamental changes. - ANSWER ✔✔-Committed fixed
costs
A cost that is incurred to support a number of cost objects but that cannot be traced to them individually.
For example, the wage cost of the pilot of a 747 airliner is a common cost of all of the passengers on the
aircraft. Without the pilot, there would be no flight and no passengers. But no part of the pilot's wage is
caused by any one passenger taking the flight. - ANSWER ✔✔-Common cost
A fixed cost that supports more than one business segment, but is not traceable in whole or in part to any
one of the business segments. - ANSWER ✔✔-Common fixed cost
A limitation under which a company must operate, such as limited available machine time or raw
materials, that restricts the company's ability to satisfy demand. - ANSWER ✔✔-Constraint
An income statement format that organizes costs by their behavior. Costs are separated into variable and
fixed categories rather than being separated into product and period costs for external reporting purposes
- ANSWER ✔✔-Contribution approach
The amount remaining from sales revenues after all variable expenses have been deducted. - ANSWER
✔✔-Contribution margin
A ratio computed by dividing contribution margin by sales. - ANSWER ✔✔-Contribution margin ratio
(CM ratio)
The process of gathering feedback to ensure that a plan is being properly executed or modified as
circumstances change. - ANSWER ✔✔-Control
Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.
