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

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which organization establishes rules U.S. companies use to record and report accounting transactions?

A) Accounting Principles Board
B) Financial Accounting Standards Board
C) Securities and Exchange Commission
D) Internal Revenue Service

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

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

3. Which formula yields a cash times interest earned ratio of 11?

A) Cash before interest and taxes of $11,000 / cash from operations of $1,000
B) Cash before interest and taxes of $11,000 / cash paid for acquisitions of $1,000
C) Cash before interest and taxes of $11,000 / cash paid for income taxes of $1,000
D) Cash before interest and taxes of $11,000 / cash paid for interest of $1,000

4. What is true regarding the use of International Financial Reporting Standards (IFRS)?

A) IFRS are required to be used by the Securities and Exchange Commission (SEC)
B) IFRS may be used instead of generally accepted accounting principles (GAAP) by any U.S.-based corporation
C) IFRS are seldom used by non-U.S. companies
D) IFRS are commonly required to be used in Asia

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

Solutions: