Principles of Financial and Managerial Accounting - D196
WGU || with 100% Accurate Solutions.
the production budget correct answers Sales budget + ending finished goods inventory -
beginning finished goods inventory
direct materials production budget correct answers Production budget × direct materials per unit
the direct materials purchases budget correct answers Direct materials production budget +
ending direct materials inventory - beginning direct materials inventory
Cash collected from customers correct answers (current period revenue × current period
collection rate) + cash collected from previous period sales
Cash payments to suppliers correct answers (current period purchases × current period payment
rate) + cash paid on previous period purchases
Cost Variance correct answers Difference between actual costs and budgeted costs
Contribution Margin correct answers = 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 answers = Sales Revenue - Variable Costs - Fixed Costs
A profit level desired by management.
At break-even correct answers Target income = 0
Sales Revenue correct answers = Sales Price x Number of Units
Variable Costs correct answers = 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 answers Variable Costs
Unit-level activities correct answers Activities that take place each time a unit of product is
produced.
Batch-level activities correct answers Activities that take place in order to support a batch or
production run, regardless of the size of the batch.
Product-line Activities correct answers Activities that take place in order to support a product
line, regardless of the number of batches or individual units produced.
cost pool correct answers Total cost being generated by a specific overhead cost activity.
, cost driver correct answers A numerical measure used to reflect the amount of a specific cost that
is associated with a particular activity
Activity rate correct answers The amount of the estimated cost pool divided by the estimated
number of cost driver events
How do expenses impact the accounting equation? correct answers Expenses decrease owners'
equity
Purpose of the accounting cycle? correct answers To turn information about transactions into
financial statements
How is gross profit computed? correct answers Sales minus cost of good sold
Which type of account is retained earnings? correct answers Equity
How does a classified balance sheet provide useful info to a decision maker? correct answers It
distinguishes between current and long-term assets
What are the three primary functions that company managers use managerial accounting info
for? correct answers Planning, controlling, evaluating
How could a period cost be reported in an income statement? correct answers As an admin
expense
How are the wages of the cashiers classified in a merchandising company? correct answers
Selling expense
What is the label given to the quantity computed as estimated level of activity correct answers
Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? correct answers It
is reported as a part of cost of goods sold
Which item is a period cost? correct answers Utility bills to heat the headquarters building
Accounting System correct answers The procedures and processes used by a business to analyze
transactions, handle routine bookkeeping tasks, and structure information so it can be used to
evaluate the performance and health of the business.
Activity-based Costing (ABC) correct answers A method of attributing overhead costs to
products based on measurable factors that relate to activities that create overhead costs.
Arm's-length Transaction correct answers A transaction in which a buyer and seller act
independently to get the best possible deal.
WGU || with 100% Accurate Solutions.
the production budget correct answers Sales budget + ending finished goods inventory -
beginning finished goods inventory
direct materials production budget correct answers Production budget × direct materials per unit
the direct materials purchases budget correct answers Direct materials production budget +
ending direct materials inventory - beginning direct materials inventory
Cash collected from customers correct answers (current period revenue × current period
collection rate) + cash collected from previous period sales
Cash payments to suppliers correct answers (current period purchases × current period payment
rate) + cash paid on previous period purchases
Cost Variance correct answers Difference between actual costs and budgeted costs
Contribution Margin correct answers = 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 answers = Sales Revenue - Variable Costs - Fixed Costs
A profit level desired by management.
At break-even correct answers Target income = 0
Sales Revenue correct answers = Sales Price x Number of Units
Variable Costs correct answers = 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 answers Variable Costs
Unit-level activities correct answers Activities that take place each time a unit of product is
produced.
Batch-level activities correct answers Activities that take place in order to support a batch or
production run, regardless of the size of the batch.
Product-line Activities correct answers Activities that take place in order to support a product
line, regardless of the number of batches or individual units produced.
cost pool correct answers Total cost being generated by a specific overhead cost activity.
, cost driver correct answers A numerical measure used to reflect the amount of a specific cost that
is associated with a particular activity
Activity rate correct answers The amount of the estimated cost pool divided by the estimated
number of cost driver events
How do expenses impact the accounting equation? correct answers Expenses decrease owners'
equity
Purpose of the accounting cycle? correct answers To turn information about transactions into
financial statements
How is gross profit computed? correct answers Sales minus cost of good sold
Which type of account is retained earnings? correct answers Equity
How does a classified balance sheet provide useful info to a decision maker? correct answers It
distinguishes between current and long-term assets
What are the three primary functions that company managers use managerial accounting info
for? correct answers Planning, controlling, evaluating
How could a period cost be reported in an income statement? correct answers As an admin
expense
How are the wages of the cashiers classified in a merchandising company? correct answers
Selling expense
What is the label given to the quantity computed as estimated level of activity correct answers
Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? correct answers It
is reported as a part of cost of goods sold
Which item is a period cost? correct answers Utility bills to heat the headquarters building
Accounting System correct answers The procedures and processes used by a business to analyze
transactions, handle routine bookkeeping tasks, and structure information so it can be used to
evaluate the performance and health of the business.
Activity-based Costing (ABC) correct answers A method of attributing overhead costs to
products based on measurable factors that relate to activities that create overhead costs.
Arm's-length Transaction correct answers A transaction in which a buyer and seller act
independently to get the best possible deal.
