WGU C253 ACCT 5300 Advanced Managerial Accounting OBJECTIVE ASSESSMENT GUIDE Q & S Latest Update

1. Which of the following is NOT considered a benefit of
activity-based costing (ABC)?
 a) More accurate product costing
 b) Identification of non-value-added activities
 c) Simplicity in costing
 d) Improved pricing strategies
 Correct Answer: c
 Rationale : ABC is often more complex and detailed compared
to traditional costing, making it less simple.
2. In a flexible budget, what type of costs remain constant with
respect to output levels?
 a) Fixed costs
 b) Variable costs
 c) Semi-variable costs
 d) Step costs
 Correct Answer: a
 Rationale : Fixed costs do not change with the level of
production or sales.
3. What is the primary purpose of variance analysis in
managerial accounting?
 a) To determine gross profit
 b) To enhance managerial control
 c) To prepare financial statements
 d) To make tax calculations
 Correct Answer: b
 Rationale : Variance analysis helps managers understand the
reasons behind performance deviations and assists with control