WGU D101 Cost and Managerial Accounting Exam
Questions And Correct Detailed Answers (Verified
Answers) Graded A+ (Brand New!!)
Terms in this set (109) QUESTIONS VERIFIED ANSWERS
1) What is a price taker? A company that has to accept the
price that the market sets for a good.
They have no influence over setting
the price.
2) What is a price maker? a firm possessing the power to set the
price within the market. They still
need to track all costs in order to
make sure they are making an
adequate return.
3) What is the major purpose and use of job c.
order costing?
a. To create a system that tracks both
manufacturing and period costs and
assigns both to products
, b. To create a system in which
manufacturing costs are tracked by
period instead of by products
c. To create a system in which
manufacturing costs are accumulated by
separate product orders or batches
d. To create a system that is exclusively
used by price makers and not by price
takers
4) Which statement is true? a.
a. Having accurate product or service
cost information is important for both
price takers and price makers.
b. Having accurate product or service
cost information is important for price
takers, but not price makers.
c. Having accurate produce or service
, cost information is not important for
either price takers or price makers.
d. Having accurate product or service
cost information is important for price
makers, but not price takers.
5) Two competitors exist in the same b.
industry. The first company has accurate
product cost information while the
second company does not.
What is the reason behind why the first
company is more successful than the
second?
a. With accurate job cost information, the
first company can undercut the second
company's prices, thus driving the
second company out of business.
b. With accurate job cost information,
the first company can set prices that
guarantee making a profit, can
understand which costs need to be
, worked on, and can determine which
actions can be taken to make the
company more efficient and profitable.
c. With accurate job cost information, the
first company can pay higher wages to
employees, thus motivating them more
than the employees of the second
company.
d. With accurate job cost information,
the first company can set prices higher
than the second company, thus earning
higher profits.
6) Job order costing is appropriate when b.
which two conditions exist?
a. Products produced are all the same,
and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from
each other, and the manufacturing
Questions And Correct Detailed Answers (Verified
Answers) Graded A+ (Brand New!!)
Terms in this set (109) QUESTIONS VERIFIED ANSWERS
1) What is a price taker? A company that has to accept the
price that the market sets for a good.
They have no influence over setting
the price.
2) What is a price maker? a firm possessing the power to set the
price within the market. They still
need to track all costs in order to
make sure they are making an
adequate return.
3) What is the major purpose and use of job c.
order costing?
a. To create a system that tracks both
manufacturing and period costs and
assigns both to products
, b. To create a system in which
manufacturing costs are tracked by
period instead of by products
c. To create a system in which
manufacturing costs are accumulated by
separate product orders or batches
d. To create a system that is exclusively
used by price makers and not by price
takers
4) Which statement is true? a.
a. Having accurate product or service
cost information is important for both
price takers and price makers.
b. Having accurate product or service
cost information is important for price
takers, but not price makers.
c. Having accurate produce or service
, cost information is not important for
either price takers or price makers.
d. Having accurate product or service
cost information is important for price
makers, but not price takers.
5) Two competitors exist in the same b.
industry. The first company has accurate
product cost information while the
second company does not.
What is the reason behind why the first
company is more successful than the
second?
a. With accurate job cost information, the
first company can undercut the second
company's prices, thus driving the
second company out of business.
b. With accurate job cost information,
the first company can set prices that
guarantee making a profit, can
understand which costs need to be
, worked on, and can determine which
actions can be taken to make the
company more efficient and profitable.
c. With accurate job cost information, the
first company can pay higher wages to
employees, thus motivating them more
than the employees of the second
company.
d. With accurate job cost information,
the first company can set prices higher
than the second company, thus earning
higher profits.
6) Job order costing is appropriate when b.
which two conditions exist?
a. Products produced are all the same,
and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from
each other, and the manufacturing
