WGU D196 EXAM | PRINCIPLES OF
FINANCIAL AND MANAGERIAL
ACCOUNTING | CORRECTLY ANSWERED
& RATED A+
What are the factors the CFO should consider in forecasting next
month's purchases?
- Correct Answer - Production needs, desired ending inventory, and
amount of beginning inventory
Scott Pippen is the manager of Segment A in Chicago Company.
Segment A is a profit center. Which two things should be used in
developing a performance evaluation measure of Scott Pippen?
- Correct Answer - Revenues and controllable costs
Which statement about managerial accounting data is true?
- Correct Answer - Managerial accounting data are created based on
competitive needs that are unique to the organization.
Which characteristic is a unique feature of management accounting
information?
- Correct Answer - Management accounting information is composed of
both financial and nonfinancial data.
Which group represents the primary users of managerial accounting
information?
,- Correct Answer - Managers
Company managers are important users of managerial accounting
information. What are the three primary functions of company
managers?
- Correct Answer - Planning, controlling, and evaluating
Which statement correctly distinguishes the uses of financial accounting
information from the uses of managerial accounting information?
- Correct Answer - Financial accounting information is prepared
according to a generally accepted set of rules.
Which activity involves the process of tracking the actual performance of
a company?
- Correct Answer - Controlling - means tracking the actual performance
of a company.
What does long-run planning include?
- Correct Answer - Strategic planning and capital budgeting
Which type of business is a typical retailer?
- Correct Answer - Merchandising business
Which types of costs does a merchandiser have?
- Correct Answer - Both product and period costs
Which types of costs does a manufacturer have?
- Correct Answer - Both product and period costs
, Which type of business purchases finished goods for resale?
- Correct Answer - Merchandising
A merchandising business purchases inventory from suppliers for resale
to customers.
Which statement identifies a difference between managerial and
financial accounting?
- Correct Answer - Managerial accounting has substantial competitive
value, while financial accounting is not a competitive tool.
What is a characteristic of managerial accounting systems that is not
also a characteristic of financial accounting systems?
- Correct Answer - Managerial accounting includes budget and forecast
data.
What is the sequence of the flow of costs through a manufacturing
operation? - Correct Answer - Purchase raw materials, transfer raw
materials to production, add direct labor and manufacturing overhead
costs, transfer the cost of completed goods to finished goods inventory,
sell goods and transfer cost to cost of goods sold.
What costs are included in manufacturing overhead?
- Correct Answer - All manufacturing costs that are not classified as
direct materials or direct labor
What is work-in-process inventory?
- Correct Answer - All material on the factory floor that is not yet
completed
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