WGU d196 Test Questions and Answers All Correct
Why is the concept of relevant range important to a manager? - Answer-Outside the relevant range, the variable cost per unit can change
Which statement correctly describes applied manufacturing overhead? - Answer-The amount of manufacturing overhe...
WGU d196 Test Questions and Answers
All Correct
Why is the concept of relevant range important to a manager? - Answer-Outside the
relevant range, the variable cost per unit can change
Which statement correctly describes applied manufacturing overhead? - Answer-The
amount of manufacturing overhead that is assigned to the goods produced
What is the label given to the quantity computed as estimated overhead costs divided
by estimated level of activity? - Answer-Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? -
Answer-It is reported as a part of cost of goods sold.
Which item is a period cost? - Answer-Utility bills to heat the headquarters building
Which statement is true with respect to activity-based costing (ABC) systems? -
Answer-An ABC system allocates overhead based on multiple activities.
How is overhead allocated in an ABC system? - Answer-Activity rate multiplied by
number of cost driver events
In an ABC system, which name is given to a numerical measure reflecting the amount
of a cost associated with a particular overhead cost activity? - Answer-Cost driver
How are production costs treated in a process costing system? - Answer-Costs are
accumulated by process and averaged over all products made during the period.
How is the production cost per unit computed in a process costing system? - Answer-
Amount of total production cost divided by the number of units completed during a
particular period of time
For which production process is process costing the appropriate costing method to use?
- Answer-Refining gasoline in a petroleum facility
What is a transaction? - Answer-Two parties exchanging something of value
What is the effect of a company's accounting department maintaining high ethical
standards? - Answer-The company's accounting information will increase in value.
Why might employees be interested in their company's financial accounting
information? - Answer-Financial statement data are often used in determining employee
bonuses.
, Which group establishes financial accounting rules in the United States? - Answer-
financial Accounting Standards Board (FASB)
Which report is one of the three primary financial statements? - Answer-Assets
decrease by $5,000; expenses increase by $5,000
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company? -
Answer-Assets increase by $80,000; liabilities increase by $80,000.
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation? - Answer-
Assets decrease by $5,000; expenses increase by $5,000.
What is the impact of expenses on the accounting equation? - Answer-Expenses
decrease owners' equity.
Which type of account are accounts payable and notes payable both examples of? -
Answer-Liability
What is the purpose of the financial accounting cycle? - Answer-To turn information
about transactions into financial statements
According to the accounting equation, the amount of liabilities and equity must always
be equal to another amount.
What is that other amount? - Answer-Assets
Which item is an expense item? - Answer-Cost of goods sold
How is gross profit computed? - Answer-Sales minus cost of goods sold
Which type of account is retained earnings? - Answer-Equity
For purposes of cash flow classification in the statement of cash flows, which item is an
operating activity? - Answer-Paying employees
How does a classified balance sheet provide useful information to a decision maker? -
Answer-It distinguishes between current and long-term assets.
What information does a balance sheet provide to a decision maker? - Answer-
Summary of the financial position of a company at a particular date
What is an account payable? - Answer-The amount owed by a company that purchased
goods or services from a supplier on credit
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