1|Page
WGU D101 - Cost and Managerial Accounting | OA |
OBJECTIVE ASSESSMENT | {LATEST 2026/ 2027 UPDATE}
COMPLETE ACTUAL AND AUTHENTIC EXAM | BRAND
NEW!
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 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.
pg. 1
,2|Page
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.
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.
Job order costing is appropriate when which two conditions exist?
pg. 2
,3|Page
a. Products produced are all the same, and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from each other, and the manufacturing
processes used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are the
same for different products.
d. Products produced are all the same, but the manufacturing processes used to
produce them are different for different products. ......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?
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, 4|Page
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 company should use a job ordering costing system?
a. Manufacturer of custom furniture
b. Manufacturer of paint
pg. 4
WGU D101 - Cost and Managerial Accounting | OA |
OBJECTIVE ASSESSMENT | {LATEST 2026/ 2027 UPDATE}
COMPLETE ACTUAL AND AUTHENTIC EXAM | BRAND
NEW!
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 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.
pg. 1
,2|Page
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.
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.
Job order costing is appropriate when which two conditions exist?
pg. 2
,3|Page
a. Products produced are all the same, and the manufacturing processes used to
produce them are the same.
b. Products produced are distinct from each other, and the manufacturing
processes used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are the
same for different products.
d. Products produced are all the same, but the manufacturing processes used to
produce them are different for different products. ......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?
pg. 3
, 4|Page
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 company should use a job ordering costing system?
a. Manufacturer of custom furniture
b. Manufacturer of paint
pg. 4
