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

Question 2

A company collects 20% of the credit sales in the month of sale and the rest is collected equally in the following two months. The company made the following credit sales:
January = $500,000
February = $420,000
March = $545,000
April = $550,000
May = $555,000
June = $567,000
July = $600,000
Which is the correct amount of cash collection in the month of September?

A. $670,000
B. $624,000
C. $625,000
D. $658,000

Question 3

What can be determined when a firm performs an external audit of a company's financial statements?

A. Whether a company's financial statements fairly reflect its financial position
B. Whether a company's financial statements indicate that the company has to pay income taxes
C. Whether a company's financial statements were prepared by a trained bookkeeper
D. Whether a company's financial statements indicate it made a profit

Question 4

A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

A. $126,500
B. $158,000
C. $265,000
D. $112,500

Question 5

What is a cost incurred as part of the production process?

A. Sunk cost
B. Raw materials cost
C. Opportunity cost
D. Period cost

Solutions: