WGU D196 OBJECTIVE ASSESMENT PREASSESSMENT EXAM

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1 WGU D196 OBJECTIVE ASSESMENT & PREASSESSMENT EXAM

QUESTION BANK LATEST 2024-2025 ALL 350 QUESTIONS AND

CORRECT ANSWERS JUST RELEASED

WGU D196 OBJECTIVE ASSESMENT

QUESTION: 1. Which label is given to the cost of wages for factory supervisors?

• Direct labor

b.Direct materials

• Manufacturing overhead
• Administrative expenses - ANSWER-c

QUESTION: 2. A company reports the following data: Price per unit = $20 Variable costs per unit = $12 Fixed costs = $12,000 Given these data, what is the variable cost ratio?

• 40%
• 25%
• 16%
• 60% - ANSWER-d

QUESTION: 3. If overhead is underapplied, which statement is true?

a.Actual costs exceed applied costs 1 / 4

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2 b.Applied costs exceed actual costs c.Costs will not be affected

• Budgeted and applied costs will be equal - ANSWER-a

QUESTION: 4. What is the final step in the accounting cycle?

a.Summarize the effects of transactions b.Analyze transactions c.Prepare reports d.Record the effects of transactions - ANSWER-c

QUESTION: 5. Which of the following is not an example of a transaction?

a.Receive cash in payment of an invoice b.Purchase an asset from a supplier c.Sale on credit to a customer

• Preparing financial statements - ANSWER-d

QUESTION: 6. On which financial statement would you see cash flows from financing activities?a.Statement of Cash Flows 2 / 4

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3 b.Balance Sheet c.Income Statement d.Statement of Retained Earnings - ANSWER-d

QUESTION: 7. Whose job is it to make sure that investors are provided with full and fair information about publicly traded companies?

FASB AICPA IASB SEC - ANSWER-d

QUESTION: 8. How does a classified balance sheet provide useful information to a decision maker?a.It distinguishes between current and long-term assets b.It provides data that are not publicly disclosed c.It distinguishes liabilities from expenses

• It provides data for a period of time instead of as a point in time - ANSWER-a
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4 QUESTION: 9. In some companies, the performance measures for profit center managers are heavily influenced by cost allocations downward from organizational units (such as company headquarters). Why is this a mistake?a.Controllable costs should not be included in the performance evaluation measure of a profit center manager b.Revenues should not be included in the performance evaluation measure of a profit center manager c.Uncontrollable costs should not be included in the performance evaluation measure of a profit center manager

• Direct costs should not be included in the performance evaluation measure of a profit center

manager - ANSWER-c

QUESTION: 10. Which is an example of a product cost?

a.Non-manufacturing personnel costs b.Rent Expense c.Office Supplies

• Raw materials to make a product - ANSWER-d

• Which budget should include all production costs other than those for direct materials and

direct labor?A.Sales budget

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