age 1 of 96
WGU D101 Cost and Managerial Accounting
OBJECTIVE ASSESSMENT ACTUAL EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <BRAND NEW VERSION>
What is a price taker? .......Answer.........A company that has to
accept the price that the market sets for a good. They have no
influence over setting the price.
What is a price maker? .......Answer.........a firm possessing the
power to set the price within the market. They still need to track
all costs in order to make sure they are making an adequate
return.
What is the major purpose and use of job order costing?
,age 2 of 96
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.
,age 3 of 96
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.
, age 4 of 96
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?
WGU D101 Cost and Managerial Accounting
OBJECTIVE ASSESSMENT ACTUAL EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <BRAND NEW VERSION>
What is a price taker? .......Answer.........A company that has to
accept the price that the market sets for a good. They have no
influence over setting the price.
What is a price maker? .......Answer.........a firm possessing the
power to set the price within the market. They still need to track
all costs in order to make sure they are making an adequate
return.
What is the major purpose and use of job order costing?
,age 2 of 96
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.
,age 3 of 96
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.
, age 4 of 96
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?
