PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING - D196 WGU EXAM COMPLETE
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) ALREADY GRADED A+
Year - to - Year Change Calculation: - ANSWER-Account Current - Account
Previous / Account Previous
Percentage of Sales Calculation - ANSWER-Income Statement Amount/Sales
How production cost per unit is computed in a process costing system: -
ANSWER-Amount of total production cost divided by the number of units
completed during a particular period of time
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
Cost pool - ANSWER-Total cost being generated by a specific overhead cost
activity.
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.
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 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
The production budget - ANSWER-Sales budget + ending finished goods
inventory - beginning finished goods inventory
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
Batch-level activities - ANSWER-Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
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
Which type of account is retained earnings? - ANSWER-Equity
How does a classified balance sheet provide useful info to a decision maker? -
ANSWER-It distinguishes between current and long-term assets
, What are the three primary functions that company managers use managerial
accounting info for? - ANSWER-Planning, controlling, evaluating
How could a period cost be reported in an income statement? - ANSWER-As an
admin expense
How are the wages of the cashiers classified in a merchandising company? -
ANSWER-Selling expense
What is the label given to the quantity computed as estimated level of activity -
ANSWER-Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? -
ANSWER-It is reported as a part of cost of goods sold
Which item is a period cost? - ANSWER-Utility bills to heat the headquarters
building
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
Accounting System - ANSWER-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.
Assets - ANSWER-Economic resources that are owned or controlled by a
company.
Accounting Equation - ANSWER-An algebraic equation that expresses the
relationship between assets (resources), liabilities (obligations), and owner's equity
(net assets, or the residual interest in a business after all liabilities have been met):
Assets = Liabilities + Owners' Equity.
ACCOUNTING - D196 WGU EXAM COMPLETE
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) ALREADY GRADED A+
Year - to - Year Change Calculation: - ANSWER-Account Current - Account
Previous / Account Previous
Percentage of Sales Calculation - ANSWER-Income Statement Amount/Sales
How production cost per unit is computed in a process costing system: -
ANSWER-Amount of total production cost divided by the number of units
completed during a particular period of time
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
Cost pool - ANSWER-Total cost being generated by a specific overhead cost
activity.
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.
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 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
The production budget - ANSWER-Sales budget + ending finished goods
inventory - beginning finished goods inventory
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
Batch-level activities - ANSWER-Activities that take place in order to support a
batch or production run, regardless of the size of the batch.
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
Which type of account is retained earnings? - ANSWER-Equity
How does a classified balance sheet provide useful info to a decision maker? -
ANSWER-It distinguishes between current and long-term assets
, What are the three primary functions that company managers use managerial
accounting info for? - ANSWER-Planning, controlling, evaluating
How could a period cost be reported in an income statement? - ANSWER-As an
admin expense
How are the wages of the cashiers classified in a merchandising company? -
ANSWER-Selling expense
What is the label given to the quantity computed as estimated level of activity -
ANSWER-Predetermined overhead rate
In a job order costing system, what is the proper accounting for a product cost? -
ANSWER-It is reported as a part of cost of goods sold
Which item is a period cost? - ANSWER-Utility bills to heat the headquarters
building
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
Accounting System - ANSWER-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.
Assets - ANSWER-Economic resources that are owned or controlled by a
company.
Accounting Equation - ANSWER-An algebraic equation that expresses the
relationship between assets (resources), liabilities (obligations), and owner's equity
(net assets, or the residual interest in a business after all liabilities have been met):
Assets = Liabilities + Owners' Equity.
