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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

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

2. 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) $158,000
B) $265,000
C) $126,500
D) $112,500

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

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

4. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

A) The price of neither product would change
B) The price of Product A would increase, and the price of Product B would increase
C) The price of Product A would increase, and the price of Product B would decrease
D) The price of Product A would decrease, and the price of Product B would increase

5. Which overhead cost is associated with batch-level activities?

A) Factory insurance
B) Property taxes
C) Product engineering wages
D) Machine setups

Solutions: