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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

Question 1

A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

A. The price of Product A would increase, and the price of Product B would increase
B. The price of neither product would change
C. The price of Product A would decrease, and the price of Product B would increase
D. The price of Product A would increase, and the price of Product B would decrease

Question 2

The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

A. $20,000
B. $17,700
C. $18,700
D. $16,500

Question 3

Which two examples represent financial statement errors?
Choose 2 answers.

A. An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability
B. An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
C. An accounting employee overpays a supplier and receives a portion of the excess as a kickback
D. An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned

Question 4

Which financial statement is used to determine a company's income and expenses for a specific period?

A. Statement of retained earnings
B. Balance sheet
C. Statement of cash flows
D. Income statement

Question 5

Which role do ethical standards have in management accounting?

A. To provide the management accountant with the ability to work with only companies that follow strict ethical principles
B. To provide the management accountant with the ability to know whether a person will act ethically or not
C. To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
D. To prevent all unethical behavior of anyone the management accountant may work with

Solutions: