WGU D196 PRINCIPLES OF FINANCIAL
AND MANAGERIAL ACCOUNTING NEW
WRITTEN COURSE REQUIREMENT
MATERIAL EXAMINATION TEST 2026 FULL
QUESTIONS AND ACCURATE SOLUTIONS
GRADED A+
⩥ direct materials production budget. Answer: Production budget ×
direct materials per unit
⩥ the direct materials purchases budget. Answer: Direct materials
production budget + ending direct materials inventory - beginning direct
materials inventory
⩥ Cash collected from customers. Answer: (current period revenue ×
current period collection rate) + cash collected from previous period
sales
⩥ Cash payments to suppliers. Answer: (current period purchases ×
current period payment rate) + cash paid on previous period purchases
⩥ Cost Variance. Answer: Difference between actual costs and budgeted
costs
,⩥ Contribution Margin. Answer: = 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. Answer: = Sales Revenue - Variable Costs - Fixed
Costs
A profit level desired by management.
⩥ At break-even. Answer: Target income = 0
⩥ Sales Revenue. Answer: = Sales Price x Number of Units
⩥ Variable Costs. Answer: = 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. Answer: Variable Costs
⩥ Unit-level activities. Answer: Activities that take place each time a
unit of product is produced.
, ⩥ Batch-level activities. Answer: Activities that take place in order to
support a batch or production run, regardless of the size of the batch.
⩥ Product-line Activities. Answer: Activities that take place in order to
support a product line, regardless of the number of batches or individual
units produced.
⩥ cost pool. Answer: Total cost being generated by a specific overhead
cost activity.
⩥ cost driver. Answer: A numerical measure used to reflect the amount
of a specific cost that is associated with a particular activity
⩥ Activity rate. Answer: The amount of the estimated cost pool divided
by the estimated number of cost driver events
⩥ How do expenses impact the accounting equation?. Answer: Expenses
decrease owners' equity
⩥ Purpose of the accounting cycle?. Answer: To turn information about
transactions into financial statements
⩥ How is gross profit computed?. Answer: Sales minus cost of good
sold
AND MANAGERIAL ACCOUNTING NEW
WRITTEN COURSE REQUIREMENT
MATERIAL EXAMINATION TEST 2026 FULL
QUESTIONS AND ACCURATE SOLUTIONS
GRADED A+
⩥ direct materials production budget. Answer: Production budget ×
direct materials per unit
⩥ the direct materials purchases budget. Answer: Direct materials
production budget + ending direct materials inventory - beginning direct
materials inventory
⩥ Cash collected from customers. Answer: (current period revenue ×
current period collection rate) + cash collected from previous period
sales
⩥ Cash payments to suppliers. Answer: (current period purchases ×
current period payment rate) + cash paid on previous period purchases
⩥ Cost Variance. Answer: Difference between actual costs and budgeted
costs
,⩥ Contribution Margin. Answer: = 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. Answer: = Sales Revenue - Variable Costs - Fixed
Costs
A profit level desired by management.
⩥ At break-even. Answer: Target income = 0
⩥ Sales Revenue. Answer: = Sales Price x Number of Units
⩥ Variable Costs. Answer: = 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. Answer: Variable Costs
⩥ Unit-level activities. Answer: Activities that take place each time a
unit of product is produced.
, ⩥ Batch-level activities. Answer: Activities that take place in order to
support a batch or production run, regardless of the size of the batch.
⩥ Product-line Activities. Answer: Activities that take place in order to
support a product line, regardless of the number of batches or individual
units produced.
⩥ cost pool. Answer: Total cost being generated by a specific overhead
cost activity.
⩥ cost driver. Answer: A numerical measure used to reflect the amount
of a specific cost that is associated with a particular activity
⩥ Activity rate. Answer: The amount of the estimated cost pool divided
by the estimated number of cost driver events
⩥ How do expenses impact the accounting equation?. Answer: Expenses
decrease owners' equity
⩥ Purpose of the accounting cycle?. Answer: To turn information about
transactions into financial statements
⩥ How is gross profit computed?. Answer: Sales minus cost of good
sold
