WGU D196 TEST QUESTIONS WITH

WGU D196 TEST QUESTIONS WITH

100% VERIFIED CORRECT

ANSWERS

Question: Which budget should include all production costs

other than those for direct materials and direct labor?

Correct answer: Manufacturing Overhead Budget

Question: Which account is a common asset account?

Correct answer: Accounts receivable

Question: On which financial statement would you see the

valuation of a company's asset account?

Correct answer: Balance Sheet

Question: What is the final step in the accounting cycle?

Correct answer: Preparing Reports

Question: Which of the following is not an example of a

transaction?

• Preparing financial statements
• Purchasing inventory
• Paying employee wages
• Selling a product

Correct answer: Preparing financial statements

Question: On which financial statement would you see cash

flows from financing activities?

Correct answer: Statement of Cash Flows

Question: Whose job is it to make sure that investors are

provided with full and fair information about publicly traded companies?

Correct answer: SEC

Question: How does a classified balance sheet provide useful

information to a decision maker?

Correct answer: It distinguishes between current and long-

term assets.

Question: In some companies, the performance measure for

profit center managers is heavily influenced by cost allocations downwards from organizational units (such as company headquarters). Why is this a mistake?

Correct answer: Uncontrollable costs should not be included

in the performance evaluation measure of a profit center manager.

Question: Which is an example of a product cost?

Correct answer: Raw materials to make a product.

Question: Which label is given to the cost of wages for

factory supervisors?

Correct answer: Manufacturing Overhead

Question: A company reports the following data: Price/unit = $20 Variable costs/unit = $12 Fixed costs = $12,000 Given this data, what is the variable cost ratio?

Correct answer: 60%

Question: If overhead is underapplied, which statement is

true?

Correct answer: Actual costs exceed applied costs.

Question: Which of the following is NOT an example of a

cost driver?

• Machine hours
• Number of employees
• Selling costs
• Direct labor hours

Correct answer: Selling costs

Question: Which item is a period cost?

Correct answer: Marketing expense

Question: Which overhead allocation method should be used

for a trash bag manufacturer?