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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. 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

3. 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

4. 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

5. 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.

Solutions: