WGU D101 COST AND MANAGERIAL ACCOUNTING
EXAM 109 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
A company that has to accept the price that the market sets for a good. They have
no influence over setting the price. - CORRECT ANSWER What is a price taker?
a firm possessing the power to set the price within the market. They still need to
track all costs in order to make sure they are making an adequate return. -
CORRECT ANSWER What is a price maker?
c. - CORRECT ANSWER What is the major purpose and use of job order costing?
a. To create a system that tracks both manufacturing and period costs and assigns
both to products
b. To create a system in which manufacturing costs are tracked by period instead
of by products
c. To create a system in which manufacturing costs are accumulated by separate
product orders or batches
d. To create a system that is exclusively used by price makers and not by price
takers
a. - CORRECT ANSWER Which statement is true?
,a. Having accurate product or service cost information is important for both price
takers and price makers.
b. Having accurate product or service cost information is important for price
takers, but not price makers.
c. Having accurate produce or service cost information is not important for either
price takers or price makers.
d. Having accurate product or service cost information is important for price
makers, but not price takers.
b. - 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?
a. With accurate job cost information, the first company can undercut the second
company's prices, thus driving the second company out of business.
b. 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.
,c. With accurate job cost information, the first company can pay higher wages to
employees, thus motivating them more than the employees of the second
company.
d. With accurate job cost information, the first company can set prices higher than
the second company, thus earning higher profits.
b. - CORRECT ANSWER Job order costing is appropriate when which two
conditions exist?
a. Products produced are all the same, and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from each other, and the manufacturing
processes used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are the
same for different products.
d. Products produced are all the same, but the manufacturing processes used to
produce them are different for different products.
a. - CORRECT ANSWER Why is having accurate product cost information
important?
a. So manufacturers can charge a price based on costs and a reasonable markup
, b. So companies can minimize the profits they are earning
c. So manufacturers can charge a price based on estimated product costs, not
including a reasonable markup
d. So companies can grow faster than all competitors in their industry
d. - CORRECT ANSWER Which type of company should use job order costing?
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
d. Commercial aircraft manufacturer
d. - CORRECT ANSWER What is a condition to using job order costing?
a. Tracking total direct materials for a given period of time
b. Having no manufacturing overhead assigned to the product cost
c. Tracking total direct labor costs for a period of time
d. Identifying each specific job or product manufactured
a. - CORRECT ANSWER Which costs should be assigned to each product under a
job order costing system?
EXAM 109 QUESTIONS WITH VERIFIED ANSWERS
2025/2026
A company that has to accept the price that the market sets for a good. They have
no influence over setting the price. - CORRECT ANSWER What is a price taker?
a firm possessing the power to set the price within the market. They still need to
track all costs in order to make sure they are making an adequate return. -
CORRECT ANSWER What is a price maker?
c. - CORRECT ANSWER What is the major purpose and use of job order costing?
a. To create a system that tracks both manufacturing and period costs and assigns
both to products
b. To create a system in which manufacturing costs are tracked by period instead
of by products
c. To create a system in which manufacturing costs are accumulated by separate
product orders or batches
d. To create a system that is exclusively used by price makers and not by price
takers
a. - CORRECT ANSWER Which statement is true?
,a. Having accurate product or service cost information is important for both price
takers and price makers.
b. Having accurate product or service cost information is important for price
takers, but not price makers.
c. Having accurate produce or service cost information is not important for either
price takers or price makers.
d. Having accurate product or service cost information is important for price
makers, but not price takers.
b. - 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?
a. With accurate job cost information, the first company can undercut the second
company's prices, thus driving the second company out of business.
b. 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.
,c. With accurate job cost information, the first company can pay higher wages to
employees, thus motivating them more than the employees of the second
company.
d. With accurate job cost information, the first company can set prices higher than
the second company, thus earning higher profits.
b. - CORRECT ANSWER Job order costing is appropriate when which two
conditions exist?
a. Products produced are all the same, and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from each other, and the manufacturing
processes used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are the
same for different products.
d. Products produced are all the same, but the manufacturing processes used to
produce them are different for different products.
a. - CORRECT ANSWER Why is having accurate product cost information
important?
a. So manufacturers can charge a price based on costs and a reasonable markup
, b. So companies can minimize the profits they are earning
c. So manufacturers can charge a price based on estimated product costs, not
including a reasonable markup
d. So companies can grow faster than all competitors in their industry
d. - CORRECT ANSWER Which type of company should use job order costing?
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
d. Commercial aircraft manufacturer
d. - CORRECT ANSWER What is a condition to using job order costing?
a. Tracking total direct materials for a given period of time
b. Having no manufacturing overhead assigned to the product cost
c. Tracking total direct labor costs for a period of time
d. Identifying each specific job or product manufactured
a. - CORRECT ANSWER Which costs should be assigned to each product under a
job order costing system?
