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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. A company has three product lines and has historically used the traditional costing system to allocate overhead costs to each product line. Due to significant differences in the production processes for the three product lines, the company implemented an activity-based costing study and identified the activity-based cost for each product, as shown in the following table.
Product A
Product B
Product C
Traditional cost per unit
$558
$1,375
$1,211
Activity-based cost per unit
$675
$1,585
$1,350
Selling price per unit
$650
$1,450
$1,300
What do these data points reveal about the selling price of this company's products?

A) The selling price for only Products A and C should increase
B) The selling price for only Product B should increase
C) No change should be made to the selling price
D) The selling price should increase for all three products

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

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

3. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

A) 6,000
B) 3,000
C) 2,000
D) 4,500

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

5. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

A) The impact of past transactions on a business organization's profit margin
B) The impact that a change in cost would have on a business organization's profit margin in the future
C) The impact of past income tax costs on a business organization's profit margin
D) The impact of a change in a business organization's number of units sold to reach a certain profit margin in the future

Solutions: