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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What is the impact on costs as sales volume decreases?

A) Total variable costs will increase in direct proportion
B) Total fixed costs will increase in direct proportion
C) Total variable costs will decrease in direct proportion
D) Total fixed costs will decrease in direct proportion


2. The following cost-volume-profit graph shows revenues and costs at various levels of production.
How many units should this company sell each month to realize a profit?

A) 100
B) 225
C) 275
D) 250


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


4. What does the overall economic performance of a company for a given time period represent?

A) Whether or not a company's sales exceed the costs of the products sold for a given time period
B) Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
C) The overall market value of the company
D) The net income of the company


5. What does management accounting present?

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


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: D
Question # 4
Answer: D
Question # 5
Answer: B

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