WGU_C253_ADVANCED_MANAGERIAL_ACCOUNTING_EXAM_QUESTIONS AND ANSWERS

WGU C253 ADVANCED MANAGERIAL
ACCOUNTING EXAM QUESTIONS AND
ANSWERS, RATED A


What is the relevant range? - CORRECT ANSWER ✔️
The range of activity within which the assumption that cost
behavior is strictly linear is reasonably valid.

What is the relevant range of activity for a fixed cost? -
CORRECT ANSWER ✔️ The range of activity over which
the graph of the cost is flat.

Variable cost (in total) - CORRECT ANSWER ✔️ Total
variable cost increase and decrease in proportion to
changes in the activity level.

Variable cost (per unit) - CORRECT ANSWER ✔️
Variable cost per unit remains constant.

Fixed cost (in total) - CORRECT ANSWER ✔️ Total fixed
cost is not affected by changes in the activity level within
the relevant range

Fixed cost (per unit) - CORRECT ANSWER ✔️ Fixed cost
per unit decreases as the activity level rises and increases
as the activity level falls.

, Mixed cost - CORRECT ANSWER ✔️ contains both
variable and fixed elements.

line can be expressed as an equation (Y = a + bX)
a = total fixed
Y = a + bX - CORRECT ANSWER ✔️ Y = total mixed cost
cost

b = variable cost per unit (slope)
X = level of activity

Decisions involve choosing between alternatives. What
three concepts go into this? - CORRECT ANSWER ✔️
Differential costs and revenues
Opportunity costs
Sunk costs

Differential costs
(or incremental costs) - CORRECT ANSWER ✔️ the
difference in cost between any two alternatives

Differential revenue - CORRECT ANSWER ✔️ The
difference in revenue between two alternatives