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(WGU D101) ACCT 3314 Cost & Managerial Accounting - Complete OA Review $13.49   Add to cart

Exam (elaborations)

(WGU D101) ACCT 3314 Cost & Managerial Accounting - Complete OA Review

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(WGU D101) ACCT 3314 Cost & Managerial Accounting - Complete OA Review (WGU D101) ACCT 3314 Cost & Managerial Accounting - Complete OA Review (WGU D101) ACCT 3314 Cost & Managerial Accounting - Complete OA Review (WGU D101) ACCT 3314 Cost & Managerial Accounting - Complete OA Review

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  • August 31, 2024
  • 26
  • 2024/2025
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D101 ACCT 3314




Cost & Managerial Accounting




COMPLETE OA REVIEW




©WGU 2024/2025

,1. Which cost classification is used for decision-making purposes
in managerial accounting?
a) Fixed costs
b) Variable costs
c) Sunk costs
d) Opportunity costs
Correct Answer: d) Opportunity costs
Rationale: Opportunity costs are the potential benefits lost
when choosing one alternative over another, making them critical
for decision-making.


2. What is the main purpose of a flexible budget?
a) To predict cash flow
b) To analyze performance based on actual revenues and
expenses
c) To determine cost behavior
d) To allocate costs to products
Correct Answer: b) To analyze performance based on actual
revenues and expenses


©WGU 2024/2025

, Rationale: Flexible budgets adjust for changes in activity levels,
allowing for meaningful variance analysis.


3. Which of the following costing methods assigns costs based on
the volume of production?
a) Job order costing
b) Process costing
c) Activity-based costing
d) Direct costing
Correct Answer: b) Process costing
Rationale: Process costing is used for homogenous products in
large quantities, assigning costs based on the total production
volume.


4. In managerial accounting, the term "relevant costs" primarily
refers to costs that:
a) Will not affect the decision-making process
b) Will only change with specific decisions
c) Are already incurred and cannot be changed
d) Are fixed over the range of production
Correct Answer: b) Will only change with specific decisions


©WGU 2024/2025

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