WGU C253 ADVANCED MANAGERIAL ACCOUNTING EXAM
2024 ACTUAL EXAM COMPLETE 200 QUESTIONS WITH
DETAILED VERIFIED ANSWERS/ALREADY GRADED A+
Costing accuracy is - ANSWER: critical to firms' success.
Costing systems help management - ANSWER: estimate costs and accurately charge
customers.
An accurate costing system can provide - ANSWER: competitive advantage
Product costing definition - ANSWER: the process of accumulating, classifying, and
assigning direct materials, direct labor, and factory overhead costs to products,
services, and projects.
What three types of cost information does manufacturing and nonmanufacturing
firms use? - ANSWER: 1) product and service cost determination and inventory
management.
2) management planning, cost control, and performance evaluation.
3) strategic and operational decision-making.
During product costing, direct costs are - ANSWER: traced to a cost object (ex. a job)
During product costing, indirect costs are - ANSWER: allocated to a cost object (using
one or more cost-allocation)
Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include:
Determination of product or service pricing - ANSWER: What is the minimum rate a
gas company must charge residential users in order to cover its costs? How should a
restaurant price its menu in order to cover costs?
Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include:
Assessment of the financial effect of adding or deleting a product, division, or
subsidiary - ANSWER: Should an automobile manufacturer add an off-road vehicle to
its product line? Should a department store close its sporting goods section?
Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include: Make
or buy decision - ANSWER: Should a medical clinic do its own blood tests or purchase
services from an outside laboratory? Should a toy manufacturing company make or
buy some of the plastic components?
, Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include:
Evaluation of product, service, or division performance - ANSWER: What was last
month's "printer product line" profit for a computer peripheral manufacturer? What
profit was made last year in the "deluxe fishing boat product line" of a boat
manufacturer?
Several different types of product costing systems are available and can be classified
by what 3 systems? - ANSWER: (1) cost accumulation method -- job or processing
costing systems.
(2) cost measurement method -- actual, normal, or standard costing systems.
(3) overhead assignment method -- traditional or activity-based costing systems.
The choice of a particular system depends on what 3 things? - ANSWER: (1) the
nature of the industry and the product or service. (2) the firm's strategy and
management information needs.
(3) the costs and benefits of acquiring, designing, modifying, and operating a
particular system.
Define job costing - ANSWER: is a product costing system that accumulates and
assigns costs to specific job or customer.
*Typically used by firms having wide range of products
*Printing shops, shipbuilders, custom furniture-manufacturing plants, contractors,
film-producing companies, accounting firms, law firms, advertising agencies,
consulting firms, medical clinics, construction companies, and engineering firms.
Define process costing - ANSWER: accumulates product or service costs by process
or department and then assigns them to a large number of nearly identical product
units.
*accumulates product or service costs by process or department and then assigns
them to a large number of nearly identical product units.
*chemical plants, food processors, household appliance manufacturers, textile
companies, petroleum product manufacturers, paper, lumber and pulp mills, glass
factories, bakeries, cement factories, and sugar factories.
Actual costing and relationship to DM, DL, FO? - ANSWER: DM = actual cost
DL = actual cost
FO = actual cost
Normal costing and relationship to DM, DL, FO? - ANSWER: DM = actual cost
DL = actual cost
FO = estimated overhead cost (using predetermined rates(s))
Standard costing and relationship to DM, DL, FO? - ANSWER: DM = standard cost
DL = standard cost
FO = standard cost
2024 ACTUAL EXAM COMPLETE 200 QUESTIONS WITH
DETAILED VERIFIED ANSWERS/ALREADY GRADED A+
Costing accuracy is - ANSWER: critical to firms' success.
Costing systems help management - ANSWER: estimate costs and accurately charge
customers.
An accurate costing system can provide - ANSWER: competitive advantage
Product costing definition - ANSWER: the process of accumulating, classifying, and
assigning direct materials, direct labor, and factory overhead costs to products,
services, and projects.
What three types of cost information does manufacturing and nonmanufacturing
firms use? - ANSWER: 1) product and service cost determination and inventory
management.
2) management planning, cost control, and performance evaluation.
3) strategic and operational decision-making.
During product costing, direct costs are - ANSWER: traced to a cost object (ex. a job)
During product costing, indirect costs are - ANSWER: allocated to a cost object (using
one or more cost-allocation)
Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include:
Determination of product or service pricing - ANSWER: What is the minimum rate a
gas company must charge residential users in order to cover its costs? How should a
restaurant price its menu in order to cover costs?
Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include:
Assessment of the financial effect of adding or deleting a product, division, or
subsidiary - ANSWER: Should an automobile manufacturer add an off-road vehicle to
its product line? Should a department store close its sporting goods section?
Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include: Make
or buy decision - ANSWER: Should a medical clinic do its own blood tests or purchase
services from an outside laboratory? Should a toy manufacturing company make or
buy some of the plastic components?
, Many strategic and operational decisions managers must make are based primarily
on information about the cost of products or services. These decisions include:
Evaluation of product, service, or division performance - ANSWER: What was last
month's "printer product line" profit for a computer peripheral manufacturer? What
profit was made last year in the "deluxe fishing boat product line" of a boat
manufacturer?
Several different types of product costing systems are available and can be classified
by what 3 systems? - ANSWER: (1) cost accumulation method -- job or processing
costing systems.
(2) cost measurement method -- actual, normal, or standard costing systems.
(3) overhead assignment method -- traditional or activity-based costing systems.
The choice of a particular system depends on what 3 things? - ANSWER: (1) the
nature of the industry and the product or service. (2) the firm's strategy and
management information needs.
(3) the costs and benefits of acquiring, designing, modifying, and operating a
particular system.
Define job costing - ANSWER: is a product costing system that accumulates and
assigns costs to specific job or customer.
*Typically used by firms having wide range of products
*Printing shops, shipbuilders, custom furniture-manufacturing plants, contractors,
film-producing companies, accounting firms, law firms, advertising agencies,
consulting firms, medical clinics, construction companies, and engineering firms.
Define process costing - ANSWER: accumulates product or service costs by process
or department and then assigns them to a large number of nearly identical product
units.
*accumulates product or service costs by process or department and then assigns
them to a large number of nearly identical product units.
*chemical plants, food processors, household appliance manufacturers, textile
companies, petroleum product manufacturers, paper, lumber and pulp mills, glass
factories, bakeries, cement factories, and sugar factories.
Actual costing and relationship to DM, DL, FO? - ANSWER: DM = actual cost
DL = actual cost
FO = actual cost
Normal costing and relationship to DM, DL, FO? - ANSWER: DM = actual cost
DL = actual cost
FO = estimated overhead cost (using predetermined rates(s))
Standard costing and relationship to DM, DL, FO? - ANSWER: DM = standard cost
DL = standard cost
FO = standard cost
