Manufacturing Overhead Budget -Correct Answer Which budget should include all production costs other than those for direct materials and direct labor?
Accounts receivable -Correct Answer Which account is a common asset account?
Balance Sheet -Correct Answer On which financial statement would ...
D196 Exam Practice Questions and
Answers 2025
Manufacturing Overhead Budget -Correct Answer ✔Which budget should include all
production costs other than those for direct materials and direct labor?
Accounts receivable -Correct Answer ✔Which account is a common asset account?
Balance Sheet -Correct Answer ✔On which financial statement would you see the
valuation of a company's asset account?
Preparing Reports -Correct Answer ✔What is the final step in the accounting cycle?
Preparing financial statements -Correct Answer ✔Which of the following is not an
example of a transaction?
Statement of Cash Flows -Correct Answer ✔On which financial statement would you
see cash flows from financing activities?
SEC -Correct Answer ✔Whose job is it to make sure that investors are provided with full
and fair information about publicly traded companies?
It distinguishes between current and long-term assets. -Correct Answer ✔How does a
classified balance sheet provide useful information to a decision maker?
Uncontrollable costs should not be included in the performance evaluation measure of a
profit center manager. -Correct Answer ✔In some companies, the performance
measure for profit center managers is heavily influenced by cost allocations downwards
from organizational units (such as company headquarters). Why is this a mistake?
Raw materials to make a product. -Correct Answer ✔Which is an examples of a product
cost?
Manufacturing Overhead -Correct Answer ✔Which label is given to the cost of wages
for factory supervisors?
60% -Correct Answer ✔A company reports the following data:
Price/unit = $20
Variable costs/unit = $12
Fixed costs = $12,000
Given this data, what is the variable cost ratio?
WGU D196 Exam
,WGU D196 Exam
Actual costs exceed applied costs. -Correct Answer ✔If overhead is underapplied,
which statement is true?
Selling costs -Correct Answer ✔Which of the following is NOT an example of a cost
driver?
Marketing expense -Correct Answer ✔Which item is a period cost?
Process Costing -Correct Answer ✔Which overhead allocation method should be used
for a trash bag manufacturer?
Variable Costs -Correct Answer ✔For the relevant range, which costs are approximately
linear within a certain range of production?
Cost-Volume-Profit Analysis -Correct Answer ✔Which of the following focuses on how a
company's activity levels impact profits?
Job Order Costing -Correct Answer ✔Which overhead allocation method should be
used for an automobile repair shop?
Factory supervisor wages, security guard wages, maintenance staff wages -Correct
Answer ✔What are examples of indirect labor?
The grease used on machines that manufacture products -Correct Answer ✔What is an
example of an indirect material?
Income taxes -Correct Answer ✔Which of the following is NOT an operating expense
$175,000 -Correct Answer ✔A company reports the following data:
Total sales rev = $275,000
Number of units sold = 25,000 units
Variable costs = $100,00
If the company is operating at its break-even points, what is the company's total
contribution margin?
As an expense -Correct Answer ✔How are period costs reported on an income
statement?
Advertising costs -Correct Answer ✔Which item in an example of a controllable cost?
Assets increases; Liability increases -Correct Answer ✔A company purchases
equipment with a note payable.
How does this transaction affect the paying company's accounting equation?
WGU D196 Exam
, WGU D196 Exam
Increase expense -Correct Answer ✔What is the impact of paying employee wages on
the accounting equation?
Owner's equity -Correct Answer ✔Which account is summarized on the balance sheet?
$75,000 COGS on income statement -Correct Answer ✔A retail company purchased
inventory costing $100,000. By the end of the year, inventory costing $75,000 had been
sold.
How is the cost of inventory reported in the financial statements?
Clothing Store -Correct Answer ✔Which of the following is an example of a
merchandising company?
Manufacturing costs other than direct labor and direct materials -Correct Answer
✔Actual manufacturing overhead includes which of the following?
Large commercial and industrial construction,
Healthcare organization,
and Car manufacturing companies -Correct Answer ✔Activity-based costing could be
used by which of the following companies?
Manufacturing overhead -Correct Answer ✔How are the wages of production
supervisors classified in a manufacturing company?
Administrative expense -Correct Answer ✔Which of the following is not an example of a
cost driver?
Cost of saws and hammers in constructing a house -Correct Answer ✔What is not an
example of direct materials?
Less has been spent than anticipated for the level of achieved production -Correct
Answer ✔Which best describes overapplied overhead?
An ABC (activity-based costing) system helps to provide more accurate product costing
and better decision making -Correct Answer ✔Which statement is true with respect to
activity-based (ABC) systems?
Sales -Correct Answer ✔What is the first budget that is prepared in a manufacturing
business?
Costs, Revenue, Assets -Correct Answer ✔What does a manager have control over in
an investment center?
WGU D196 Exam
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