WGU D196 TEST BANK FOR OA AND PRE -ASSESSMENT

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WGU D196 TEST BANK FOR OA AND PRE -ASSESSMENT

REVIEW 2025/2026 WITH 250 ACTUAL EXAM QUESTIONS

AND CORRECT ANSWERS (100% CORRECT ANSWERS)

GRADED A+

• Which is an example of a product cost?
• Non-manufacturing personnel costs
• Rent Expense
• Office Supplies
• Raw materials to make a product - Correct Answer - d

• Which label is given to the cost of wages for factory supervisors?
• Direct labor
• Direct materials
• Manufacturing overhead
• Administrative expenses - Correct Answer - c

• 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% - Correct Answer - d

• If overhead is underapplied, which statement is true?
• Actual costs exceed applied costs 1 / 4

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• Applied costs exceed actual costs
• Costs will not be affected
• Budgeted and applied costs will be equal - Correct Answer - a

• Which of the following is not an example of a cost driver?
• Miles driven
• Selling costs
• Machine hours
• Number of customers - Correct Answer - b

• Which item is a period cost?
• Manufacturing supplies
• Overhead directly tied to the production facility
• Raw materials
• Marketing expense - Correct Answer - d

• Which overhead allocation method should be used for a trash bag manufacturer?

• Product-line costing
• Process costing
• ABC costing

d . Job order costing - Correct Answer - b

• For relevant range, which costs are approximately linear within a certain range of

production?

• Fixed costs
• Variable costs
• Stepped costs
• Mixed costs - Correct Answer - b 2 / 4

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• Which of the following focuses on how a company's activity levels impact profits?
• Job order costing
• Cost-Volume-Profit Analysis
• Overhead cost allocation
• Process costing - Correct Answer - b

• Which overhead allocation method should be used for a automobile repair shop?
• Product-line costing
• Process costing
• ABC costing
• Job order costing - Correct Answer - d

• What is an example of indirect labor?
• Factory supervisors wages
• Security guard wages
• Maintenance staff wages
• All of the above are examples of indirect labor - Correct Answer - d

• Which of the following is an example of an indirect material?
• Timber used to construct a house
• The grease used on machines that manufacture products
• The fabric used to assemble clothing
• The circuit board included in a radio - Correct Answer - b

• Which of the following is not an operating expense?
• Advertising and marketing
• Office supplies
• Utilities 3 / 4

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• Income taxes - Correct Answer - d

14. 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?a.$250,000 b.$175,000 c.$150,000

• $125,000 - Correct Answer - b

• How are period costs reported on an income statement?
• As revenue
• As an expense
• As cost of goods sold
• As an asset - Correct Answer - b

• Which item is an example of a controllable cost?
• Advertising costs
• Rent expense
• Depreciation
• Customer tastes and economic conditions - Correct Answer - a

• A company purchases equipment with a note payable. How does this transaction

affect the paying company's accounting equation?

• Asset increases; Liability increases
• Asset increases; Asset decreases
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