Exam (elaborations)
WGU D101 Cost and Managerial Accounting Exam Questions and Answers
- Course
- Institution
WGU D101 Cost and Managerial Accounting Exam Questions and Answers
[Show more]
Content preview
WGU D101 Cost and ManagerialAccounting Exam Questions and Answers
What is a price taker? - -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? - -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?
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 - -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.
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. - -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.
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. - -b.
- Job order costing is appropriate when which two conditions exist?
a. Products produced are all the same, and the manufacturing processes
used to produce them are the same.
b. Products produced are distinct from each other, and the manufacturing
processes used are different for different products.
c. Products produced are distinct, but the manufacturing processes used are
the same for different products.
d. Products produced are all the same, but the manufacturing processes
used to produce them are different for different products. - -b.
- Why is having accurate product cost information important?
a. So manufacturers can charge a price based on costs and a reasonable
markup
b. So companies can minimize the profits they are earning
c. So manufacturers can charge a price based on estimated product costs,
not including a reasonable markup
d. So companies can grow faster than all competitors in their industry - -a.
- Which type of company should use job order costing?
a. Air filter manufacturer
b. Soda bottler
c. Paper towel manufacturer
, d. Commercial aircraft manufacturer - -d.
- What is a condition to using job order costing?
a. Tracking total direct materials for a given period of time
b. Having no manufacturing overhead assigned to the product cost
c. Tracking total direct labor costs for a period of time
d. Identifying each specific job or product manufactured - -d.
- Which costs should be assigned to each product under a job order costing
system?
a. Direct materials, direct labor, and manufacturing overhead
b. Direct labor, manufacturing overhead, and administrative expenses
c. Direct materials, direct labor, and administrative expenses
d. Manufacturing overhead, administrative expenses, and depreciation of
office buildings - -a.
- Which company should use a job ordering costing system?
a. Manufacturer of custom furniture
b. Manufacturer of paint
c. Food processing plant
d. Loan processing firm - -a.
- The profitability of each separate job or product can only be tracked using
which product costing system?
a. Process costing
b. Average unit costing
c. Profitability costing
d. Job order costing - -d.
- In completing its job order costing journal entries, ABC Company's
accountants made a credit entry to finished goods inventory.
When is this entry made?
a. When work-in-process inventory is transferred to finished goods inventory
b. When finished goods inventory is sold
c. When the cost of goods manufactured is being calculated
d. When manufacturing overhead costs are applied to products being made -
-b.
- Which account are the costs of the raw materials, direct labor, and
miscellaneous manufacturing overhead transferred to when the product is
being manufactured?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
