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(TOP QUALITY EXAM REVIEW)
WGU C253 ADVANCED
MANAGERIAL ACCOUNTIN G,
EXAM QUESTIONS AND A NSWERS,
RATED A+. VERIFIED. 2000
UNDERAPPLIED
Question :Absorption costing
CORRECT ANSWER: A costing method that includes
all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs.
Question :Activity
CORRECT ANSWER: An event that causes the
consumption of overhead resources in an organization.
Question :Activity base
CORRECT ANSWER: A measure of whatever causes
the incurrence of a variable cost. For example, the total cost of surgical gloves in a hospital will increase as the
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number of surgeries increases. Therefore, the number of surgeries is the activity base that explains the total cost of surgical gloves.
Question :Activity cost pool
CORRECT ANSWER: A "bucket" in which costs are
accumulated that relate to a single activity measure in an activity-based costing system.
Question :Activity measure
CORRECT ANSWER: An allocation base in an activity-
based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.
Question :Activity variance
CORRECT ANSWER: The difference between a
revenue or cost item in the flexible budget and the same item in the static planning budget. An activity variance is due solely to the difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.
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Question :Activity-based costing (ABC)
CORRECT ANSWER: A costing method based on
activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore fixed as well as variable costs.
Question :Activity-based management (ABM)
CORRECT ANSWER: A management approach that
focuses on managing activities as a way of eliminating waste and reducing delays and defects.
Question :Administrative costs
CORRECT ANSWER:All executive, organizational,
and clerical costs associated with the general management of an organization rather than with manufacturing or selling.
Question :Allocation base
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CORRECT ANSWER: A measure of activity such as
direct labor-hours or machine-hours that is used to assign costs to cost objects.
Question :Avoidable cost
CORRECT ANSWER: A cost that can be eliminated by
choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.
Question :Batch-level activities
CORRECT ANSWER: Activities that are performed
each time a batch of goods is handled or processed, regardless of how many units are in the batch. The amount of resource consumed depends on the number of batches run rather than on the number of units in the batch.