age 1 of 40
WGU C253 ADVANCED MANAGERIAL ACCOUNTING
OA ACTUAL EXAM 2025/2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Absorption costing .....Answer.......A costing method that includes
all manufacturing costs—direct materials, direct labor, and both
variable and fixed manufacturing overhead—in unit product
costs.
Activity .....Answer.......An event that causes the consumption of
overhead resources in an organization.
Activity base .....Answer.......A measure of whatever causes the
incurrence of a variable cost. For example, the total cost of
surgical gloves in a hospital will increase as the number of
,age 2 of 40
surgeries increases. Therefore, the number of surgeries is the
activity base that explains the total cost of surgical gloves.
Activity cost pool .....Answer.......A "bucket" in which costs are
accumulated that relate to a single activity measure in an
activity-based costing system.
Activity measure .....Answer.......An allocation base in an activity-
based costing system; ideally, a measure of the amount of
activity that drives the costs in an activity cost pool.
Activity variance .....Answer.......The difference between a
revenue or cost item in the flexible budget and the same item in
the static planning budget. An activity variance is due solely to
the difference between the actual level of activity used in the
flexible budget and the level of activity assumed in the planning
budget.
,age 3 of 40
Activity-based costing (ABC) .....Answer.......A costing method
based on activities that is designed to provide managers with
cost information for strategic and other decisions that potentially
affect capacity and therefore fixed as well as variable costs.
Activity-based management (ABM) .....Answer.......A management
approach that focuses on managing activities as a way of
eliminating waste and reducing delays and defects.
Administrative costs .....Answer.......All executive, organizational,
and clerical costs associated with the general management of an
organization rather than with manufacturing or selling.
Allocation base .....Answer.......A measure of activity such as
direct labor-hours or machine-hours that is used to assign costs to
cost objects.
, age 4 of 40
Avoidable cost .....Answer.......A cost that can be eliminated by
choosing one alternative over another in a decision. This term is
synonymous with differential cost and relevant cost.
Batch-level activities .....Answer.......Activities that are performed
each time a batch of goods is handled or processed, regardless
of how many units are in the batch. The amount of resource
consumed depends on the number of batches run rather than on
the number of units in the batch.
Benchmarking .....Answer.......A systematic approach to
identifying the activities with the greatest potential for
improvement.
Bill of materials .....Answer.......A document that shows the
quantity of each type of direct material required to make a
product.
WGU C253 ADVANCED MANAGERIAL ACCOUNTING
OA ACTUAL EXAM 2025/2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Absorption costing .....Answer.......A costing method that includes
all manufacturing costs—direct materials, direct labor, and both
variable and fixed manufacturing overhead—in unit product
costs.
Activity .....Answer.......An event that causes the consumption of
overhead resources in an organization.
Activity base .....Answer.......A measure of whatever causes the
incurrence of a variable cost. For example, the total cost of
surgical gloves in a hospital will increase as the number of
,age 2 of 40
surgeries increases. Therefore, the number of surgeries is the
activity base that explains the total cost of surgical gloves.
Activity cost pool .....Answer.......A "bucket" in which costs are
accumulated that relate to a single activity measure in an
activity-based costing system.
Activity measure .....Answer.......An allocation base in an activity-
based costing system; ideally, a measure of the amount of
activity that drives the costs in an activity cost pool.
Activity variance .....Answer.......The difference between a
revenue or cost item in the flexible budget and the same item in
the static planning budget. An activity variance is due solely to
the difference between the actual level of activity used in the
flexible budget and the level of activity assumed in the planning
budget.
,age 3 of 40
Activity-based costing (ABC) .....Answer.......A costing method
based on activities that is designed to provide managers with
cost information for strategic and other decisions that potentially
affect capacity and therefore fixed as well as variable costs.
Activity-based management (ABM) .....Answer.......A management
approach that focuses on managing activities as a way of
eliminating waste and reducing delays and defects.
Administrative costs .....Answer.......All executive, organizational,
and clerical costs associated with the general management of an
organization rather than with manufacturing or selling.
Allocation base .....Answer.......A measure of activity such as
direct labor-hours or machine-hours that is used to assign costs to
cost objects.
, age 4 of 40
Avoidable cost .....Answer.......A cost that can be eliminated by
choosing one alternative over another in a decision. This term is
synonymous with differential cost and relevant cost.
Batch-level activities .....Answer.......Activities that are performed
each time a batch of goods is handled or processed, regardless
of how many units are in the batch. The amount of resource
consumed depends on the number of batches run rather than on
the number of units in the batch.
Benchmarking .....Answer.......A systematic approach to
identifying the activities with the greatest potential for
improvement.
Bill of materials .....Answer.......A document that shows the
quantity of each type of direct material required to make a
product.
