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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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 transactions on a business organization's profit margin
C) The impact that a change in cost would have on a business organization's profit margin in the future
D) The impact of past income tax costs on a business organization's profit margin

2. What does management accounting present?

A) Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions
B) Information regarding the qualifications of managers to help shareholders make decisions
C) Data to predict inconsistencies in finances to help users within a company make decisions
D) Information regarding a business's overall economic performance to help shareholders make decisions

3. 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) $265,000
B) $112,500
C) $126,500
D) $158,000

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

5. Which two examples represent financial statement errors?
Choose 2 answers.

A) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
B) An accounting employee overpays a supplier and receives a portion of the excess as a kickback
C) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability
D) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned

Solutions: