WGU D101 Cost and Managerial Accounting Exam Questions
and Answers | Latest 2026/2027 Update | 100% Verified |
Guaranteed Pass (WGU)
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.
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. ✔✔answer b.
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 ✔✔answer a.
Which type of company should use job order costing?
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
,d. Commercial aircraft manufacturer ✔✔answer d.
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 ✔✔answer d.
Which costs should be assigned to each product under a job order costing system?
a. Direct materials, direct labor, and manufacturing overhead
b. Direct labor, manufacturing overhead, and administrative expenses
c. Direct materials, direct labor, and administrative expenses
d. Manufacturing overhead, administrative expenses, and depreciation of office buildings
✔✔answer a.
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.
Which company should use a job ordering costing system?
a. Manufacturer of custom furniture
b. Manufacturer of paint
c. Food processing plant
d. Loan processing firm ✔✔answer a.
The profitability of each separate job or product can only be tracked using which product
costing system?
a. Process costing
b. Average unit costing
c. Profitability costing
d. Job order costing ✔✔answer d.
In completing its job order costing journal entries, ABC Company's accountants made a credit
entry to finished goods inventory.
When is this entry made?
a. When work-in-process inventory is transferred to finished goods inventory
b. When finished goods inventory is sold
c. When the cost of goods manufactured is being calculated
and Answers | Latest 2026/2027 Update | 100% Verified |
Guaranteed Pass (WGU)
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.
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. ✔✔answer b.
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 ✔✔answer a.
Which type of company should use job order costing?
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
,d. Commercial aircraft manufacturer ✔✔answer d.
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 ✔✔answer d.
Which costs should be assigned to each product under a job order costing system?
a. Direct materials, direct labor, and manufacturing overhead
b. Direct labor, manufacturing overhead, and administrative expenses
c. Direct materials, direct labor, and administrative expenses
d. Manufacturing overhead, administrative expenses, and depreciation of office buildings
✔✔answer a.
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.
Which company should use a job ordering costing system?
a. Manufacturer of custom furniture
b. Manufacturer of paint
c. Food processing plant
d. Loan processing firm ✔✔answer a.
The profitability of each separate job or product can only be tracked using which product
costing system?
a. Process costing
b. Average unit costing
c. Profitability costing
d. Job order costing ✔✔answer d.
In completing its job order costing journal entries, ABC Company's accountants made a credit
entry to finished goods inventory.
When is this entry made?
a. When work-in-process inventory is transferred to finished goods inventory
b. When finished goods inventory is sold
c. When the cost of goods manufactured is being calculated
