WGU C253 ADVANCED MANAGERIAL ACCOUNTING EXAM
2024 ACTUAL EXAM COMPLETE 200 QUESTIONS WITH
DETAILED VERIFIED ANSWERS/ALREADY GRADED A+
Managerial accounting - ANSWER: Gathering and analyzing relevant information that
is needed to make decisions.
Factors to consider in a decision - ANSWER: Economic
Legal
Ethical
Impacts
Cost Functions - ANSWER: Period Costs: costs associated with administration of the
business or selling of products (expensed in period incurred on income statement)
Product costs: costs used in the production process to produce products (capitalized
as part of inventory on balance sheet)
Cost Assignments - ANSWER: Direct Costs: can be traced directly to cost objects (DM
and DL)
Indirect Costs: cannot be traced directly to cost objects (OH)
Solution = cost allocation
Activity-based drivers
Volume-based drivers
y=mx+b - ANSWER: y = mixed
m = variable
x = amount
b = fixed
Job-Order Costing - ANSWER: all manufacturing costs incurred are assigned to jobs
Appropriate when costs can be readily identified with specific customers, jobs, or
projects (Example = shipbuilding)
Process Costing System - ANSWER: treats all units of product as the same
(homogenous) Often found in large firms that produce one or a few homogenous
products through continuous mass production
Operation Costing System - ANSWER: a hybrid costing system that uses job costing to
assign direct material costs to jobs and a departmental approach to assign
"conversation costs" to products or services
, Job-Cost Sheet - ANSWER: the basic supporting document in a job costing system. It
records and summarizes the costs of direct materials, direct labor, and applied
factory overhead for each particular job
Overhead applied formula - ANSWER: Overhead Applied = Overhead Rate x Actual
Cost Driver Activity
Overapplied/Underapplied overhead journal entries - ANSWER: Overapplied: D:
MOH C: COGS
Underapplied: D: COGS C: MOH
Capacity-based OH rate
Overhead rate formula: - ANSWER: Overhead Rate = Estimated Overhead Cost /
Allocation Base Activity (AT CAPACITY)
Acitivity-Based Costiing (ABC) - ANSWER: a costing approach that assigns resource
costs to cost objects such as products, services, or customers based on activities
those cost objects use/require
An overhead cost allocation method
Activity: an event that costumes resources
Process and Steps of ABC - ANSWER: 1) Develop OH activity cost pools (usually given
in the problem)
2) Calculate OH rates for each OH activity cost pool
- Predetermined OH Rate = Estimated OH Cost / Estimate total activity cost driver
base
3) Allocate costs to products/services
- Applied Overhead = Predetermined OH Rate x Actual amount of activity cost driver
based used
4) Calculate unit product costs
advantages and disadvantages of ABC - ANSWER: Advantages of ABC:
- Increased accuracy
- Better decision making
- Better planning and improvement opportunities
Disadvantages of ABC
- Added complexity, complication, and cost
Budget - ANSWER: quantitative expression of a proposed plan of action and
management of resources by management for a specified time period (the useful
outcome)
Fixed (static) budgets - ANSWER: Master Budget: a comprehensive plan for the
activities of an organization during a fiscal year. It is a collection of smaller budgets
2024 ACTUAL EXAM COMPLETE 200 QUESTIONS WITH
DETAILED VERIFIED ANSWERS/ALREADY GRADED A+
Managerial accounting - ANSWER: Gathering and analyzing relevant information that
is needed to make decisions.
Factors to consider in a decision - ANSWER: Economic
Legal
Ethical
Impacts
Cost Functions - ANSWER: Period Costs: costs associated with administration of the
business or selling of products (expensed in period incurred on income statement)
Product costs: costs used in the production process to produce products (capitalized
as part of inventory on balance sheet)
Cost Assignments - ANSWER: Direct Costs: can be traced directly to cost objects (DM
and DL)
Indirect Costs: cannot be traced directly to cost objects (OH)
Solution = cost allocation
Activity-based drivers
Volume-based drivers
y=mx+b - ANSWER: y = mixed
m = variable
x = amount
b = fixed
Job-Order Costing - ANSWER: all manufacturing costs incurred are assigned to jobs
Appropriate when costs can be readily identified with specific customers, jobs, or
projects (Example = shipbuilding)
Process Costing System - ANSWER: treats all units of product as the same
(homogenous) Often found in large firms that produce one or a few homogenous
products through continuous mass production
Operation Costing System - ANSWER: a hybrid costing system that uses job costing to
assign direct material costs to jobs and a departmental approach to assign
"conversation costs" to products or services
, Job-Cost Sheet - ANSWER: the basic supporting document in a job costing system. It
records and summarizes the costs of direct materials, direct labor, and applied
factory overhead for each particular job
Overhead applied formula - ANSWER: Overhead Applied = Overhead Rate x Actual
Cost Driver Activity
Overapplied/Underapplied overhead journal entries - ANSWER: Overapplied: D:
MOH C: COGS
Underapplied: D: COGS C: MOH
Capacity-based OH rate
Overhead rate formula: - ANSWER: Overhead Rate = Estimated Overhead Cost /
Allocation Base Activity (AT CAPACITY)
Acitivity-Based Costiing (ABC) - ANSWER: a costing approach that assigns resource
costs to cost objects such as products, services, or customers based on activities
those cost objects use/require
An overhead cost allocation method
Activity: an event that costumes resources
Process and Steps of ABC - ANSWER: 1) Develop OH activity cost pools (usually given
in the problem)
2) Calculate OH rates for each OH activity cost pool
- Predetermined OH Rate = Estimated OH Cost / Estimate total activity cost driver
base
3) Allocate costs to products/services
- Applied Overhead = Predetermined OH Rate x Actual amount of activity cost driver
based used
4) Calculate unit product costs
advantages and disadvantages of ABC - ANSWER: Advantages of ABC:
- Increased accuracy
- Better decision making
- Better planning and improvement opportunities
Disadvantages of ABC
- Added complexity, complication, and cost
Budget - ANSWER: quantitative expression of a proposed plan of action and
management of resources by management for a specified time period (the useful
outcome)
Fixed (static) budgets - ANSWER: Master Budget: a comprehensive plan for the
activities of an organization during a fiscal year. It is a collection of smaller budgets
