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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 should increase for all three products
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 for only Product B should increase

2. A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

A) $0.329
B) $0.375
C) $0.343
D) $0.313

3. A company budgeted the following purchases for raw materials:
January = $10,000
February = $20,000
March = $25,000
April = $22,000
May = $27,000
June = $30,000
July = $24,000
The company has a policy of paying for 40% of purchases in the month of the purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
What are the budgeted cash disbursements for May based on this information?

A) $18,500
B) $25,050
C) $27,300
D) $24,750

4. Which source of cash is the best indicator of a firm's viability as an ongoing concern?

A) Cash from investing activities
B) Cash from financing activities
C) Cash from operating activities
D) Cash from production activities

5. Which role do ethical standards have in management accounting?

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

Solutions: