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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Budgeting and Decision Making | 10–15% | - Relevant information for decision making
|
| Financial Analysis | 45–50% | - Financial statement analysis techniques
|
| Cost Systems | 20–25% | - Cost concepts and classification
|
| Profit Planning | 10–15% | - Cost-volume-profit (CVP) analysis
|
| Controls and Regulations | 10–15% | - Internal control systems and principles
|
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
Which ratio provides a measure of how well a company turns sales into profits?
- A. Return on costs
- B. Return on profit
- C. Return on sales
- D. Return on expenses
Explanation: Only visible for Lead2Passed members. You can sign-up / login (it's free).
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
Explanation: Only visible for Lead2Passed 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 should increase for all three products
- 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 for only Product B should increase
Explanation: Only visible for Lead2Passed members. You can sign-up / login (it's free).
In September, an airline using accrual accounting received cash from a round-trip ticket sold to a customer for
$1,500. The ticket allowed the customer to fly from Denver to Hawaii in October and from Hawaii back to Denver in November.
When should the airline recognize revenue?
- A. In September, October, and November
- B. Only in November
- C. In October and November
- D. Only in September
Explanation: Only visible for Lead2Passed members. You can sign-up / login (it's free).
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. $0.375
- B. $0.313
- C. $0.343
- D. $0.329
Explanation: Only visible for Lead2Passed members. You can sign-up / login (it's free).
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