WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
Which item is a period cost?
Rent on factory robotic equipment in an airplane manufacturer
Wages of maintenance workers in the factory building
Utility bills to heat the headquarters building
Wages for factory quality control inspectors -
ANSWERS_Utility bills to heat the headquarters building
Which type of account is retained earnings?
Revenue
Asset
Equity
Liability - ANSWERS_Equity
For purposes of cash flow classification in the statement of
cash flows, which item is an operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees - ANSWERS_Paying employees
How does a classified balance sheet provide useful
information to a decision maker?
,WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point in
time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. -
ANSWERS_It distinguishes between current and long-term
assets.
What information does a balance sheet provide to a decision
maker?
Summary of the operating performance of a company during a
period
Summary of the financial position of a company at a
particular date
Summary of the cash flows of a company during a period
Summary of the operating performance of a company at a
particular date - ANSWERS_Summary of the financial
position of a company at a particular date
Which statement is true with respect to activity-based costing
(ABC) systems?
An ABC system allocates overhead based on multiple
activities.
Implementing an ABC system requires very little analysis of
the factors that create overhead costs.
,WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
An ABC system completely eliminates all overhead costs.
Implementing an ABC system requires only a careful
calculation of total direct labor hours. - ANSWERS_An ABC
system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of
the factors that create overhead costs.
How is overhead allocated in an ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct
labor hours
You Selected
Cost pool multiplied by number of cost driver events
Activity rate multiplied by number of cost driver events -
ANSWERS_Activity rate multiplied by number of cost driver
events
In an ABC system, which name is given to a numerical
measure reflecting the amount of a cost associated with a
particular overhead cost activity?
Cost system
You Selected
Cost pool
Cost metric
, WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
Cost driver - ANSWERS_Cost driver
How are production costs treated in a process costing system?
Costs are assigned to the actual manufacturing overhead
account during the period.
Costs are assigned to specific jobs or products made during
the period.
Costs are accumulated by process and averaged over all
products made during the period.
Costs are assigned to a selling, general, and administrative
expense account during the period. - ANSWERS_Costs are
accumulated by process and averaged over all products made
during the period.
How is the production cost per unit computed in a process
costing system?
Amount of overhead cost divided by the number of units
completed during a particular period of time
Amount of direct materials cost divided by the quantity of
direct materials used during a particular period of time
Amount of total production cost divided by the number of
units completed during a particular period of time
Amount of direct labor cost divided by the number of direct
labor hours used during a particular period of time -
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
Which item is a period cost?
Rent on factory robotic equipment in an airplane manufacturer
Wages of maintenance workers in the factory building
Utility bills to heat the headquarters building
Wages for factory quality control inspectors -
ANSWERS_Utility bills to heat the headquarters building
Which type of account is retained earnings?
Revenue
Asset
Equity
Liability - ANSWERS_Equity
For purposes of cash flow classification in the statement of
cash flows, which item is an operating activity?
Buying equipment
Selling bonds
Distributing dividends
Paying employees - ANSWERS_Paying employees
How does a classified balance sheet provide useful
information to a decision maker?
,WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
It distinguishes between current and long-term assets.
It provides data for a period of time instead of as a point in
time.
It distinguishes liabilities from expenses.
It provides data that are not publicly disclosed. -
ANSWERS_It distinguishes between current and long-term
assets.
What information does a balance sheet provide to a decision
maker?
Summary of the operating performance of a company during a
period
Summary of the financial position of a company at a
particular date
Summary of the cash flows of a company during a period
Summary of the operating performance of a company at a
particular date - ANSWERS_Summary of the financial
position of a company at a particular date
Which statement is true with respect to activity-based costing
(ABC) systems?
An ABC system allocates overhead based on multiple
activities.
Implementing an ABC system requires very little analysis of
the factors that create overhead costs.
,WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
An ABC system completely eliminates all overhead costs.
Implementing an ABC system requires only a careful
calculation of total direct labor hours. - ANSWERS_An ABC
system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of
the factors that create overhead costs.
How is overhead allocated in an ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct
labor hours
You Selected
Cost pool multiplied by number of cost driver events
Activity rate multiplied by number of cost driver events -
ANSWERS_Activity rate multiplied by number of cost driver
events
In an ABC system, which name is given to a numerical
measure reflecting the amount of a cost associated with a
particular overhead cost activity?
Cost system
You Selected
Cost pool
Cost metric
, WGU D196 OA AND PRE-ASSESSMENT
EXAM(ACTUAL 2026-2027) QUESTIONS WITH
CORRECT VERIFIED GRADED A+
Cost driver - ANSWERS_Cost driver
How are production costs treated in a process costing system?
Costs are assigned to the actual manufacturing overhead
account during the period.
Costs are assigned to specific jobs or products made during
the period.
Costs are accumulated by process and averaged over all
products made during the period.
Costs are assigned to a selling, general, and administrative
expense account during the period. - ANSWERS_Costs are
accumulated by process and averaged over all products made
during the period.
How is the production cost per unit computed in a process
costing system?
Amount of overhead cost divided by the number of units
completed during a particular period of time
Amount of direct materials cost divided by the quantity of
direct materials used during a particular period of time
Amount of total production cost divided by the number of
units completed during a particular period of time
Amount of direct labor cost divided by the number of direct
labor hours used during a particular period of time -
