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WGU D101 Module 1: Key Concepts in Cost and Managerial Accounting
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WGU D101 Module 1: Key Concepts in Cost and Managerial Accounting
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WGU D101 Module 1: Key Concepts in Cost and ManagerialAccounting
Manufacturing Organizations - correct answer ✔✔Any organization whose main economic activity
involves using components or raw materials to make finished goods for sale to customers
Service Organizations - correct answer ✔✔Any organization whose main economic activity involves
producing a nonphysical product that provides value to a customer
Merchandising Organizations - correct answer ✔✔Any organization whose main economic activity
involves purchasing finished goods and reselling them to customers
Cost Information - correct answer ✔✔Without accurate ________, it is difficult to set appropriate prices,
evaluate performance, reward employees, or make production decisions. It is even difficult to know
whether a company should be competing in a specific market.
Job Order Costing - correct answer ✔✔When the product or service provided can be considered as
separate and distinct from other products or services provided, companies use what is called
______________.
price taker - correct answer ✔✔In most cases where a company competes in a market by providing
goods or services, the company is a ______
price taker - correct answer ✔✔That means that the market sets the price and the company must then
determine whether it can produce a product or provide a service where, at the market price, it can earn
an adequate return. A company that competes in a market by providing goods or services.
price taker - correct answer ✔✔When a company is a ________, it must track the costs of the product
being produced or the service being provided to be able to compare the cost of the product or service
with the price the market is offering.
, Job Order Costing - correct answer ✔✔The process of tracking the costs of an individual product. The
company will accumulate all of the costs associated with a job. Those costs are then used to determine
profit margins, among other things.
Price-maker - correct answer ✔✔A company that determines the price of a product based on costs and
markup
price maker - correct answer ✔✔In cases where a company is a ___________, it still needs to track costs
to ensure an adequate return is generated. Being a _________ means that the product is customized and
unique and that the maker of the product is able to charge a price based on costs and a markup.
Job Order Costing - correct answer ✔✔As a price-taker or a price-maker, you need to be able to assign
the costs of a product or service to each individual job. This assignment and allocation of costs is the
essence of __________.
To create a system in which manufacturing costs are accumulated by separate product orders or batches
- correct answer ✔✔What is the major purpose and use of job order costing?
Job Order Costing - correct answer ✔✔________ is used when each product or service is distinct and the
costs associated with those products or services can be separately tracked.
Price takers - correct answer ✔✔__________ must have accurate costs to determine whether they can
make a profit at the market price as set by competitors.
Price makers - correct answer ✔✔________ must have accurate costs so they do not set their prices too
high or too low because prices determine the motivations of buyers.
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. - correct answer ✔✔Two competitors exist in the same
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?
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