Wgu D196 Pre-Assessment 56 Correctly Answered Questions Latest Update

How is overhead allocated in an ABC system? {Ans: Activity rate multiplied by number of cost driver events}A retail company purchased inventory costing $100,000. By the end of the year, inventory costing $75,000 had been sold. How is the remaining $25,000 in inventory reported in the financial statements? {Ans: As an asset in the balance sheet}What is an example of a financial cost that would result from poor direct labor budgeting and planning? {Ans: Increased hiring, training, and overtime costs}Why is the concept of relevant range important to a manager? {Ans: Outside the relevant range, the variable cost per unit can change.}According to the accounting equation, the amount of liabilities and equity must always be equal to another amount. What is that other amount? {Ans: Assets}What is the correct sequence for the flow of costs through a job order costing system? {Ans: Raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold}Which type of account is retained earnings? {Ans: Equity}What is the proper accounting for a product cost? {Ans: Record as an inventory cost until the item is sold}How are wages of office staff in a company headquarters building classified?