WGU D101 COST AND MANAGERIAL ACCOUNTING EXAM
WITH 100% CORRECT AND VERIFIED ANSWERS
Correct 68
100%
Incorrect 00
Your answers
1 of 68
Term
What budget is created after the Production Budget in regard to
preparation for a Master Budget?
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, After the Sales & Production Budgets After the Sales & Production
are created, is the Marketing Budget. Budgets are created, is the
Direct Materials Budget.
After the Sales & Production Budgets After the Sales & Production Budgets
are created, is the Research Budget. are created, is the Financial Planning
Budget.
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2 of 68
Term
What are the benefits of a Cash Budget?
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1. To help management maintain sufficient materials inventory levels so as
to not hold up the production process.
2. Also, to prevent having excessive inventory that utilizes too much
inventory investment as well as storage cost overruns.
3 sections of a Cash Budget:
1. Cash receip ts - from sales, borrowing, and the sale of assets.
2. Cash p ay ments or disbursements - for operations, to pay back loans,
pay dividends, and buy assets.
3. Financing needs - the difference between cash receipts and cash disbursements.
, It provides you insight to your cash flow needs and when additional money
may be needed to cover operation expenses. Also, if borrowing is not an
option it allows you time to research other options and develop a plan on
how to handle the cash flow needs for the year.
4. Determine when the cash for each quarter's sales will be collected and
multiply the appropriate percentages times revenues per quarter.
5.Add the dollar amounts collected from each quarter's sales to arrive at the total
cash collected each month.
Don't know?
3 of 68
Term
What is frequently used to help determine the Variable MOH costs
in regard to a manufacturing company for Cost & Managerial
accounting?
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The responsible parties for setting the standards used on the Direct Labor Budget
are the Production Foreman, and the Labor Scheduler.
The sales team, economic analysts, and strategic planners are responsible for
creating the Sales Budget.
Variable MOH costs are created by jobs that involve more direct labor work
time and/or more machine hour time. So, budget Variable MOH costs are
, based on direct labor hours and/or machine hours.
Important factors in a Cash Receipts Budget:
Sales volume
Price per unit
Revenue earned.
Received in current quarter.
Current revenue collected.
Prior revenue collected.
Collections from customers.
Don't know?
4 of 68
Term
What is an example of a Cash Disbursements
Budget? Scenario: Sunbird Boat Company for 2019
Cash Budget Producing 100 boats and selling them for
10k / boat
Beginning A/R from BS; 80% collect from sales in current quarter &
20% from previous month.
Beginning A/P from BS; 75% payment from purchases in current
quarter & 25% in previous quarter.
Give this one a try later!
WITH 100% CORRECT AND VERIFIED ANSWERS
Correct 68
100%
Incorrect 00
Your answers
1 of 68
Term
What budget is created after the Production Budget in regard to
preparation for a Master Budget?
Give this one a try later!
, After the Sales & Production Budgets After the Sales & Production
are created, is the Marketing Budget. Budgets are created, is the
Direct Materials Budget.
After the Sales & Production Budgets After the Sales & Production Budgets
are created, is the Research Budget. are created, is the Financial Planning
Budget.
Don't know?
2 of 68
Term
What are the benefits of a Cash Budget?
Give this one a try later!
1. To help management maintain sufficient materials inventory levels so as
to not hold up the production process.
2. Also, to prevent having excessive inventory that utilizes too much
inventory investment as well as storage cost overruns.
3 sections of a Cash Budget:
1. Cash receip ts - from sales, borrowing, and the sale of assets.
2. Cash p ay ments or disbursements - for operations, to pay back loans,
pay dividends, and buy assets.
3. Financing needs - the difference between cash receipts and cash disbursements.
, It provides you insight to your cash flow needs and when additional money
may be needed to cover operation expenses. Also, if borrowing is not an
option it allows you time to research other options and develop a plan on
how to handle the cash flow needs for the year.
4. Determine when the cash for each quarter's sales will be collected and
multiply the appropriate percentages times revenues per quarter.
5.Add the dollar amounts collected from each quarter's sales to arrive at the total
cash collected each month.
Don't know?
3 of 68
Term
What is frequently used to help determine the Variable MOH costs
in regard to a manufacturing company for Cost & Managerial
accounting?
Give this one a try later!
The responsible parties for setting the standards used on the Direct Labor Budget
are the Production Foreman, and the Labor Scheduler.
The sales team, economic analysts, and strategic planners are responsible for
creating the Sales Budget.
Variable MOH costs are created by jobs that involve more direct labor work
time and/or more machine hour time. So, budget Variable MOH costs are
, based on direct labor hours and/or machine hours.
Important factors in a Cash Receipts Budget:
Sales volume
Price per unit
Revenue earned.
Received in current quarter.
Current revenue collected.
Prior revenue collected.
Collections from customers.
Don't know?
4 of 68
Term
What is an example of a Cash Disbursements
Budget? Scenario: Sunbird Boat Company for 2019
Cash Budget Producing 100 boats and selling them for
10k / boat
Beginning A/R from BS; 80% collect from sales in current quarter &
20% from previous month.
Beginning A/P from BS; 75% payment from purchases in current
quarter & 25% in previous quarter.
Give this one a try later!
