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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. How does management accounting differ from financial accounting?

A) Management accounting is restricted to providing financial rather than nonfinancial data
B) Management accounting is not used to gain a competitive advantage in the marketplace
C) Management accounting is used primarily for internal planning, control, and evaluation
D) Management accounting presents an unbiased view of a company's economic performance

2. A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

A) $0.313
B) $0.343
C) $0.329
D) $0.375

3. A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?

A) $40,000
B) $70,000
C) $230,000
D) $130,000

4. 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) $16,500
B) $20,000
C) $18,700
D) $17,700

5. Which role do ethical standards have in management accounting?

A) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter
B) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
C) To provide the management accountant with the ability to know whether a person will act ethically or not
D) To prevent all unethical behavior of anyone the management accountant may work with

Solutions: