WGU D101 Cost and Managerial Accounting
Objective Assessment Final Exam Questions
and Answers | Latest 2026/2027 Update
(100% Verified) Graded A+.
Which of the following are transferred from work-in-process to finished
goods inventory?
a. Only the actual inventory items
b. Only the cost of the inventory items
c. Neither the actual goods nor the cost of the finished items
d. Actual inventory items and the costs of those inventory items
✔✔answer d. Both the costs and the actual inventory items must
be tracked through the process costing system. When the items are
100% complete, the inventory would be transferred to finished goods
inventory at the costs that were expended to make the inventory.
Which costs make up the work-in-process inventory costs in the
processing centers?
a. Direct materials and manufacturing overhead costs
b. Direct labor and manufacturing overhead costs
c. Direct materials and coversion costs
,d. Direct materials and direct labor costs ✔✔answer c. Direct
materials and conversion costs, which are direct labor and
manufacturing overhead costs, are costs that make up the work-
inprocess inventory costs in processing centers.
Which term is used for direct materials and conversion costs associated
with items started but not finished?
a. Finished goods inventory
b. Work-in-process inventory
c. Cost of goods sold
d. Direct labor ✔✔answer b
What is a price taker? ✔✔answer A company that has to accept the
price that the market sets for a good. They have no influence over
setting the price.
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 ✔✔answer c.
Which products would be produced using the process costing method?
a. Manufacturing jets for use by commercial airlines
b. Making custom boats for sale, each with different features
c. Preparing tax returns for individuals of extremely high net worth
d. Manufacturing bottles of ketchup for sale in grocery stores
✔✔answer d.
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. ✔✔answer a.
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.
Objective Assessment Final Exam Questions
and Answers | Latest 2026/2027 Update
(100% Verified) Graded A+.
Which of the following are transferred from work-in-process to finished
goods inventory?
a. Only the actual inventory items
b. Only the cost of the inventory items
c. Neither the actual goods nor the cost of the finished items
d. Actual inventory items and the costs of those inventory items
✔✔answer d. Both the costs and the actual inventory items must
be tracked through the process costing system. When the items are
100% complete, the inventory would be transferred to finished goods
inventory at the costs that were expended to make the inventory.
Which costs make up the work-in-process inventory costs in the
processing centers?
a. Direct materials and manufacturing overhead costs
b. Direct labor and manufacturing overhead costs
c. Direct materials and coversion costs
,d. Direct materials and direct labor costs ✔✔answer c. Direct
materials and conversion costs, which are direct labor and
manufacturing overhead costs, are costs that make up the work-
inprocess inventory costs in processing centers.
Which term is used for direct materials and conversion costs associated
with items started but not finished?
a. Finished goods inventory
b. Work-in-process inventory
c. Cost of goods sold
d. Direct labor ✔✔answer b
What is a price taker? ✔✔answer A company that has to accept the
price that the market sets for a good. They have no influence over
setting the price.
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 ✔✔answer c.
Which products would be produced using the process costing method?
a. Manufacturing jets for use by commercial airlines
b. Making custom boats for sale, each with different features
c. Preparing tax returns for individuals of extremely high net worth
d. Manufacturing bottles of ketchup for sale in grocery stores
✔✔answer d.
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. ✔✔answer a.
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.
