Exam Name: WGU Accounting for Decision Makers C213 VAC2
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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Managerial Accounting Concepts | - Cost-Volume-Profit (CVP) analysis - Contribution margin and break-even analysis - Cost classification and behavior (fixed, variable, mixed costs) - Job order and process costing |
| Topic 2: Financial Statement Analysis | - Horizontal and vertical analysis - Ratio analysis (liquidity, profitability, solvency, efficiency ratios) - Interpreting financial data for decision-making purposes |
| Topic 3: 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 |
| Topic 4: Financial Accounting Fundamentals | - Accrual vs. cash basis accounting - Understanding the accounting cycle - Recording transactions and adjusting entries - Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) |
| Topic 5: Budgeting and Planning | - Financial budgets (cash budget, budgeted income statement, budgeted balance sheet) - Master budget components - Variance analysis - Operating budgets (sales, production, direct materials, direct labor, overhead) |
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?
- A. The SEC supports company management and boards of directors in the effective discharge of their responsibilities
- B. The SEC provides representation and training to controllers of public companies
- C. The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
- D. The SEC ensures that financial statement users are provided with reliable information to use in decision- making
Correct Answer: D 🗳️
Explanation: Only visible for Lead2PassExam 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 Products A and C should increase
- B. The selling price should increase for all three products
- C. No change should be made to the selling price
- D. The selling price for only Product B should increase
Correct Answer: B 🗳️
Explanation: Only visible for Lead2PassExam members. You can sign-up / login (it's free).
A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?
- A. $78,750
- B. $18,750
- C. $152,500
- D. $62,500
Correct Answer: C 🗳️
Explanation: Only visible for Lead2PassExam members. You can sign-up / login (it's free).
The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?
- A. $18,700
- B. $16,500
- C. $20,000
- D. $17,700
Correct Answer: D 🗳️
Explanation: Only visible for Lead2PassExam members. You can sign-up / login (it's free).
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. 6,000
- B. 3,000
- C. 4,500
- D. 2,000
Correct Answer: A 🗳️
Explanation: Only visible for Lead2PassExam members. You can sign-up / login (it's free).
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