Latest Update - (Latest Update) Principles of Financial and Man...

D196 / D 196 Pre - Assessment ( Update 2025/ 2026) Principles of Financial and Managerial Accounting Questions & Answers Grade

A - WGU

Question:

A company reports these data:

Price per unit = $25 Variable costs per unit = $15 Fixed costs = $15,000 Given these data, what is the variable cost ratio?

A. 60%

B. 50%

C. 40%

D. 20%

Answer:

60%

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Question:

Why is the concept of relevant range important to a manager?

• Inside the relevant range, the variable cost per unit can increase.
• Outside the relevant range, the variable cost per unit stays constant.
• Inside the relevant range, the total fixed cost can change.
• Outside the relevant range, the variable cost per unit can change.

Answer:

Outside the relevant range, the variable cost per unit can change.

Question:

Which statement correctly describes applied manufacturing overhead?

• The amount of manufacturing overhead that is assigned to each employee
• The total manufacturing costs other than direct labor
• The amount of manufacturing overhead that is assigned to the goods

produced

• The total manufacturing costs other than direct materials

Answer:

The amount of manufacturing overhead that is assigned to the goods produced

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Question:

What is the label given to the quantity computed as estimated overhead costs divided by estimated level of activity?

• Predetermined overhead rate
• Forecasted overhead rate
• Indirect overhead rate
• Underapplied overhead rate

Answer:

Predetermined overhead rate

Question:

In a job order costing system, what is the proper accounting for a product cost?

• It is reported as a part of general expenses.
• It is reported as an expense when it occurs.
• It is reported as a part of cost of goods sold.
• It is reported as a part of administrative expenses.

Answer:

It is reported as a part of cost of goods sold.

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