WGU D196 Final Exam (NEW 2026/ 2027 Update) Principles of Financial and Managerial Accounting Review| Questions & Answers | Grade A| 100% Correct (Verified Solutions)

WGUl D196l Finall Examl (NEWl 2026/l
2027l Update)l Principlesl ofl Financiall andl
Manageriall Accountingl Review|l Questionsl
&l Answersl |l Gradel A|l 100%l Correctl
(Verifiedl Solutions)

QUESTION
Whatl probleml willl bel causedl ifl overheadl isl underapplied?

Answer:
Totall costl ofl productsl orl ordersl willl bel understated



QUESTION
Whatl isl anl opportunityl cost?

Answer:
Revenuel lossl froml selectingl al differentl alternative



QUESTION
Howl isl contributionl marginl calculated?

Answer:
Salesl minusl variablel cost



QUESTION
Whatl describesl jobl orderl costing?

Answer:

,Al systeml inl whichl manufacturingl costsl arel accumulatedl byl separatel productl ordersl orl
batches



QUESTION
Whenl isl jobl orderl costingl notl appropriate?

Answer:
Whenl al companyl producesl productsl orl servicesl inl al continuousl processl inl whichl jobsl
arel productsl orl projectsl can'tl bel specificallyl identified



QUESTION
Inl al jobl orderl costingl systeml howl ourl factoryl supervisorl wagesl classified?

Answer:
Manufacturingl overhead



QUESTION
Whatl isl al periodl cost?

Answer:
Al costl associatedl withl activitiesl occurringl outsidel thel factory



QUESTION
Whichl statementl isl correctl withl respectl activity-basedl costingl (ABC)l overheadl
allocation?

Answer:
Overheadl isl allocatedl basedl onl severall differentl measuresl ofl activity



QUESTION
Onel importantl resultl ofl usingl anl ABCl systeml isl morel accuratel productl costing.l Whatl
isl anotherl importantl resultl ofl usingl anl ABCl system?

,Answer:
Betterl decisionsl made



QUESTION
Andl ABCl overheadl allocationl systeml isl notl alwaysl substantiallyl betterl thanl al
traditionall system.l Whenl doesl al traditionall overheadl allocationl systeml workl well?

Answer:
Whenl thel productionl processl forl eachl differentl productl orl projectl orl processl isl
basicallyl thel same



QUESTION
Whatl isl processl costing?

Answer:
Al methodl ofl productl costingl inl whichl costsl arel accumulatedl byl processl andl averagedl
overl alll productsl madel duringl al period.



QUESTION
Forl somel productionl processesl jobl orderl costingl isl thel correctl productionl costingl
Systemsl tol use.l Withl otherl productionl processes,l processl costingl isl morel appropriate.l
Forl whichl productl isl processl morel appropriate?

Answer:
Manufacturingl identicall residentiall refrigeratorsl (al processl costingl systeml isl usedl forl
nearlyl identicall unitsl arel massl produced.l Asl al resultl alll unitsl producedl duringl thatl
periodl orl assignl thel samel cost)



QUESTION
Fourl taxl consultingl companiesl arel veryl differentl setsl ofl customers.l Whichl ofl thesel fourl
taxl consultingl companiesl isl mostl likelyl tol usel thisl processl systeml inl determiningl thel
costl ofl eachl customerl engagement?

, Answer:
Al companyl thatl servesl taxl customersl whol arel middlel incomel individualsl whol arel
basicallyl thel samel taxl issues



QUESTION
Whatl isl anl indirectl cost?

Answer:
Alsol knownl asl commonl costsl orl jointl costs.l Arel costsl normallyl incurredl forl thel
benefitl ofl severall segmentsl withinl thel organization.l canl bel fixedl orl variable,l nearlyl
alwaysl fixed.



QUESTION
Whatl isl actuall manufacturingl overhead?

Answer:
Manufacturingl costsl otherl thanl directl materialsl andl directl labor



QUESTION
Whatl isl overappliedl manufacturingl overhead?

Answer:
Thel excessl ofl appliedl manufacturingl overheadl costsl overl thel actuall manufacturingl
overheadl costl forl thel period



QUESTION
Whatl isl estimatedl manufacturingl overhead?

Answer:
Budgetedl manufacturingl overheadl costsl thatl arel usedl tol establishl thel predeterminedl
overheadl rate