WGU D196 TEST BANK FOR OA AND PRE -

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WGU D196 TEST BANK FOR OA AND PRE -

ASSESSMENT REVIEW 2024/2025 WITH 250

ACTUAL EXAM QUESTIONS AND CORRECT

ANSWERS (100% CORRECT AN SWERS) D196

PRACTICE EXAM 2024 (BRAND NEW!!)

• 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

• 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

3 . A company reports the following data:

Total sales revenue = $275,000 Number of units sold = 25,000 units Variable costs = $100,000 If the company is operating at its break-even point, what is the company's total contribution margin? 1 / 4

pg. 2 a.$250,000 b.$175,000 c.$150,000

• $125,000 - ANSWER-b

• 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

• 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

• On which financial statement would you see the valuation of a company's asset

accounts?a.Statement of Cash Flows b.Balance Sheet c.Income Statement d.Statement of Retained Earnings - ANSWER-B

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• 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

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

materials and direct labor?A.Sales budget B.Direct materials budget C.Manufacturing overhead budget

• Production budget - ANSWER-c

• 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

• Which is an example of a product cost?

a.Non-manufacturing personnel costs 3 / 4

pg. 4 b.Rent Expense c.Office Supplies

• Raw materials to make a product - ANSWER-d

• Which label is given to the cost of wages for factory supervisors?
• Direct labor

b.Direct materials

• Manufacturing overhead
• Administrative expenses - ANSWER-c

• Which account is a common asset account?

A.Accounts payables B.Equity C.Accounts receivable

• Utilities Expense - ANSWER-c

• If overhead is underapplied, which statement is true?

a.Actual costs exceed applied costs b.Applied costs exceed actual costs c.Costs will not be affected

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

• Which of the following is not an example of a cost driver?

a.Miles driven b.Selling costs

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