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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Budgeting and Planning | - Variance analysis - Master budget components - Financial budgets (cash budget, budgeted income statement, budgeted balance sheet) - Operating budgets (sales, production, direct materials, direct labor, overhead) |
| Topic 2: Managerial Accounting Concepts | - Job order and process costing - Contribution margin and break-even analysis - Cost classification and behavior (fixed, variable, mixed costs) - Cost-Volume-Profit (CVP) analysis |
| Topic 3: Financial Statement Analysis | - Ratio analysis (liquidity, profitability, solvency, efficiency ratios) - Interpreting financial data for decision-making purposes - Horizontal and vertical analysis |
| Topic 4: Financial Accounting Fundamentals | - Understanding the accounting cycle - Accrual vs. cash basis accounting - Recording transactions and adjusting entries - Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) |
| Topic 5: Decision Making and Performance Evaluation | - Responsibility accounting and performance metrics - Make-or-buy and special order decisions - Relevant costs for decision making - Capital budgeting techniques (NPV, IRR, Payback Period) - Balanced Scorecard concepts |
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
Which overhead cost is associated with batch-level activities?
- A. Property taxes
- B. Product engineering wages
- C. Machine setups
- D. Factory insurance
Correct Answer: C 🗳️
Explanation: Only visible for PassReview members. You can sign-up / login (it's free).
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. The selling price for only Products A and C should increase
- C. No change should be made to the selling price
- D. The selling price should increase for all three products
Correct Answer: D 🗳️
Explanation: Only visible for PassReview members. You can sign-up / login (it's free).
Which role do ethical standards have in management accounting?
- A. To provide the management accountant with the ability to work with only companies that follow strict ethical principles
- B. To prevent all unethical behavior of anyone the management accountant may work with
- C. To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
- D. To provide the management accountant with the ability to know whether a person will act ethically or not
Correct Answer: C 🗳️
What does it mean if a company has a debt ratio of 101.5%?
- A. The company has 1.5% more total liabilities than total assets
- B. The company has 1.5% more total liabilities than net income
- C. The company has 1.5% more current liabilities than current assets
- D. The company has 1.5% more total liabilities than gross sales
Correct Answer: A 🗳️
Explanation: Only visible for PassReview members. You can sign-up / login (it's free).
Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.
Correct Answer:
Explanation:
Conservatism - Information related to recognizing losses as they occur
Reliable - Information that can be verified
Material - Information that is important enough to make a difference
Relevant - Information having to do with the matter at hand
These accounting terms describe important qualitative ideas used in financial reporting. Conservatism means accountants should use caution when uncertainty exists, especially by recognizing potential losses sooner rather than delaying them. Reliable information is information that can be supported, confirmed, or verified, which makes it trustworthy for users of financial statements. Material information is significant enough to affect the decisions of investors, creditors, or other users. If leaving it out or misstating it could influence a decision, it is material. Relevant information is information that relates directly to the issue being considered and is useful for decision-making.
These concepts help ensure that accounting information is useful, dependable, and meaningful. Relevance focuses on usefulness, reliability focuses on trustworthiness, materiality focuses on significance, and conservatism focuses on caution under uncertainty. Together, they support better financial statement preparation and interpretation. In this matching question, each term lines up with its most standard accounting definition, so the correct matches are exactly as shown above.
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