2025-2026 WGU D196
Principles of
Financial and
Managerial
Accounting
OA exam with
100% correct
and verified
answers
, the production budget - Correct Answer-Sales budget + ending finished goods inventory
- beginning finished goods inventory
direct materials production budget - Correct Answer-Production budget × direct
materials per unit
the direct materials purchases budget - Correct Answer-Direct materials production
budget + ending direct materials inventory - beginning direct materials inventory
Cash collected from customers - Correct Answer-(current period revenue × current
period collection rate) + cash collected from previous period sales
Cash payments to suppliers - Correct Answer-(current period purchases × current
period payment rate) + cash paid on previous period purchases
Cost Variance - Correct Answer-Difference between actual costs and budgeted costs
Contribution Margin - Correct Answer-= Sales Revenue - Variable Costs
The difference between total sales and variable costs; the portion of sales revenue
available to cover fixed costs and provide a profit.
Target Income - Correct Answer-= Sales Revenue - Variable Costs - Fixed Costs
A profit level desired by management.
At break-even - Correct Answer-Target income = 0
Sales Revenue - Correct Answer-= Sales Price x Number of Units
Variable Costs - Correct Answer-= Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion to changes in activity level.
Variable Cost Ratio x Sales Revenue - Correct Answer-Variable Costs
Unit-level activities - Correct Answer-Activities that take place each time a unit of
product is produced.
Batch-level activities - Correct Answer-Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Product-line Activities - Correct Answer-Activities that take place in order to support a
product line, regardless of the number of batches or individual units produced.
cost pool - Correct Answer-Total cost being generated by a specific overhead cost
activity.
Principles of
Financial and
Managerial
Accounting
OA exam with
100% correct
and verified
answers
, the production budget - Correct Answer-Sales budget + ending finished goods inventory
- beginning finished goods inventory
direct materials production budget - Correct Answer-Production budget × direct
materials per unit
the direct materials purchases budget - Correct Answer-Direct materials production
budget + ending direct materials inventory - beginning direct materials inventory
Cash collected from customers - Correct Answer-(current period revenue × current
period collection rate) + cash collected from previous period sales
Cash payments to suppliers - Correct Answer-(current period purchases × current
period payment rate) + cash paid on previous period purchases
Cost Variance - Correct Answer-Difference between actual costs and budgeted costs
Contribution Margin - Correct Answer-= Sales Revenue - Variable Costs
The difference between total sales and variable costs; the portion of sales revenue
available to cover fixed costs and provide a profit.
Target Income - Correct Answer-= Sales Revenue - Variable Costs - Fixed Costs
A profit level desired by management.
At break-even - Correct Answer-Target income = 0
Sales Revenue - Correct Answer-= Sales Price x Number of Units
Variable Costs - Correct Answer-= Variable Cost per Unit x Number of Units
Costs that change in total in direct proportion to changes in activity level.
Variable Cost Ratio x Sales Revenue - Correct Answer-Variable Costs
Unit-level activities - Correct Answer-Activities that take place each time a unit of
product is produced.
Batch-level activities - Correct Answer-Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
Product-line Activities - Correct Answer-Activities that take place in order to support a
product line, regardless of the number of batches or individual units produced.
cost pool - Correct Answer-Total cost being generated by a specific overhead cost
activity.
