WGU D196 EXAM | PRINCIPLES OF
FINANCIAL AND MANAGERIAL
ACCOUNTING EXAM | QUESTIONS
AND VERIFIED ANSWERS GRADED A+
Which budget should include the expected cost of supplies used by the
office staff of the corporate headquarters?
Production budget
Direct materials budget
Sales budget
Administrative expense budget
- Correct Answer - Administrative expense budget
Which items are uncontrollable, external variables that make it difficult to
forecast the level of sales?
Inventory level and product management
Selling price and sales effort
Customer tastes and economic conditions
Direct labor and advertising expenditures
- Correct Answer - Customer tastes and economic conditions
,What is the correct sequence of budgets in a manufacturing business?
Direct materials, sales, production
Sales, production, direct materials
Production, direct materials, sales
Sales, direct materials, production
- Correct Answer - Sales, production, direct materials
Which type of business organization has a major focus on direct
materials, direct labor, and overhead?
Merchandising
Service
Retail
Manufacturing
- Correct Answer - Manufacturing
What are the three primary functions that company managers use
managerial accounting information for?
Operating, investing, and financing
Planning, controlling, and evaluating
Borrowing, repaying, and lending
Reporting, allowing, and negotiating
- Correct Answer - Planning, controlling, and evaluating
, What is the proper accounting for a product cost?
Record immediately as an expense
Record as a liability on the balance sheet
Record as a financing cash flow
Record as an inventory cost until the item is sold
- Correct Answer - Record as an inventory cost until the item is sold
How could a period cost be reported in an income statement?
As an administrative expense
As cost of goods manufactured
As cost of goods sold
As manufacturing overhead
- Correct Answer - As an administrative expense
A retail company purchased inventory costing $100,000. By the end of
the year, inventory costing $75,000 had been sold.
How is the remaining $25,000 in inventory reported in the financial
statements?
As manufacturing overhead in the income statement
As an asset in the balance sheet
As an administrative expense in the income statement
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 nursehailey. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
