WGU D101 Cost and Managerial
Accounting Exam
Question : What is a price taker?
CORRECT ANSWER: A company that has to accept the
price that the market sets for a good. They have no influence
over setting the price.
Question : What is a price maker?
CORRECT ANSWER: a firm possessing the power to set
the price within the market. They still need to track all costs
in order to make sure they are making an adequate return.
Question : What is the major purpose and use of job order
costing?a. To create a system that tracks both manufacturing
and period costs and assigns both to productsb. To create a
system in which manufacturing costs are tracked by period
instead of by productsc. To create a system in which
manufacturing costs are accumulated by separate product
orders or batchesd. To create a system that is exclusively used
by price makers and not by price takers
CORRECT ANSWER: c.
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