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

Question 2

Which two item subtotals are included in a multi-step income statement?
Choose 2 answers.

A. Gross profit
B. Total assets
C. Income from operations
D. Current liabilities

Question 3

Which user group of financial statements evaluates the ability to repay loans?

A. Management
B. Investors
C. Lenders
D. Suppliers

Question 4

Which organization establishes rules U.S. companies use to record and report accounting transactions?

A. Internal Revenue Service
B. Accounting Principles Board
C. Financial Accounting Standards Board
D. Securities and Exchange Commission

Question 5

Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A. Administrative employee benefits
B. Production employee benefits
C. Administrative office electricity costs
D. Factory electricity costs

Solutions: