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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 manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A. Assign overhead costs
B. Identify overhead cost activities
C. Double check the DM & DL calculations
D. Calculate G & A

Question 2

What can be deduced when a company has an asset turnover of 0.95?

A. The company was able to generate $0.95 in profit for each dollar in assets
B. The company was able to generate $0.95 in sales for each dollar in assets
C. The company was able to generate $0.95 in liabilities for each dollar in assets
D. The company was able to generate $0.95 in equity for each dollar in assets

Question 3

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

Question 4

Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A. The firm cannot be retained only by the CFO
B. The firm cannot audit a company for more than five years
C. The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients
D. The firm cannot use any forms of advertising to obtain new audit clients

Question 5

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

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

Solutions: