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

D 196 / D196 Pre - Assessment (Latest Update 2025/ 2026) Principles of Financial and Managerial Accounting | Questions & Answers | Grade A | 100% Correct - WGU

Question:

In an ABC system, which name is given to a numerical measure reflecting the amount of a cost associated with a particular overhead cost activity?

• Cost system
• You Selected
• Cost pool
• Cost metric
• Cost driver

Answer:

Cost driver

• / 4

Question:

How are production costs treated in a process costing system?

• Costs are assigned to the actual manufacturing overhead account during

the period.

• Costs are assigned to specific jobs or products made during the period.
• Costs are accumulated by process and averaged over all products made

during the period.

• Costs are assigned to a selling, general, and administrative expense account

during the period.

Answer:

Costs are accumulated by process and averaged over all products made during the period.

Question:

How is the production cost per unit computed in a process costing system?

• Amount of overhead cost divided by the number of units completed

during a particular period of time

• Amount of direct materials cost divided by the quantity of direct materials

used during a particular period of time

• Amount of total production cost divided by the number of units

completed during a particular period of time

• Amount of direct labor cost divided by the number of direct labor hours

used during a particular period of time

Answer:

Amount of total production cost divided by the number of units completed during a particular period of time 2 / 4

Question:

For which production process is process costing the appropriate costing method to use?

• Refining gasoline in a petroleum facility
• Producing made-to-order industrial equipment
• Building custom-made furniture
• Constructing a high-rise office building

Answer:

Refining gasoline in a petroleum facility

Question:

Which overhead allocation method should be used for a business that mass- produces breakfast cereal?

• Job order costing
• Product-line costing
• Process costing
• ABC costing

Answer:

Process costing

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Question:

What is the correct sequence for the flow of costs through a job order costing system?

• Raw materials inventory, work-in-process inventory, cost of goods sold,

finished goods inventory

• Raw materials inventory, cost of goods sold, work-in-process inventory,

finished goods inventory

• Raw materials inventory, work-in-process inventory, finished goods

inventory, cost of goods sold

• Raw materials inventory, finished goods inventory, cost of goods sold,

work-in-process inventory

Answer:

Raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold

Question:

Which type of company cannot use job order costing?

• Building construction
• Tax accountant for wealthy people
• Road construction
• Petroleum refining plant

Answer:

Petroleum refining plant

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