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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which information does a balance sheet provide about a company?

A) Cash collections and cash expenditures at a specific point in time
B) Assets and liabilities for a specific point in time
C) Cash collections and cash expenditures for a period of time
D) Revenues and expenses for a period of time

2. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Income smoothing
B) Liability deferral
C) Accounting management
D) Profit control

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

4. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

A) The impact that a change in cost would have on a business organization's profit margin in the future
B) The impact of a change in a business organization's number of units sold to reach a certain profit margin in the future
C) The impact of past transactions on a business organization's profit margin
D) The impact of past income tax costs on a business organization's profit margin

5. 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) 2,000
D) 6,000

Solutions: