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

SectionObjectives
Topic 1: Business Decision Support- Relevant Costing
  • 1. Differential cost analysis
    • 2. Make or buy decisions
      - Performance Measurement
      • 1. Responsibility accounting concepts
        • 2. Financial ratios overview
          Topic 2: Managerial Accounting for Decision Making- Cost-Volume-Profit Analysis
          • 1. Contribution margin concepts
            • 2. Break-even analysis
              - Cost Behavior
              • 1. Fixed vs variable costs
                • 2. Mixed costs analysis
                  - Budgeting and Planning
                  • 1. Operating budgets
                    • 2. Forecasting and variance analysis
                      Topic 3: Financial Accounting Fundamentals- Accounting Principles
                      • 1. Revenue recognition concepts
                        • 2. Accrual vs cash accounting
                          - Financial Statements
                          • 1. Income Statement analysis
                            • 2. Cash Flow Statement basics
                              • 3. Balance Sheet structure

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                                WGU Accounting for Decision Makers C213 VAC2 Sample Questions (Q60-Q65):

                                NEW QUESTION # 60
                                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?

                                Answer: B

                                Explanation:
                                The correct answer is D. $17,700 . To find the ending cash balance, start with the beginning cash balance and then add all cash inflows and subtract all cash outflows.
                                Beginning cash = $1,200
                                Inflows:
                                Cash from sales = $16,000
                                Cash received from non-trading securities = $5,000
                                Cash received from loans = $8,000
                                Total inflows = $29,000
                                Outflows:
                                Wages and salaries paid = $4,500
                                Cash paid for plant assets = $6,000
                                Cash paid in repayment of loans = $2,000
                                Total outflows = $12,500
                                Now calculate ending cash:
                                Ending cash = $1,200 + $29,000 - $12,500 = $17,700
                                This is the amount of cash remaining after considering all listed cash transactions. The classification of the cash flows is not necessary to solve the question, but they include operating, investing, and financing effects.
                                What matters mathematically is that every cash receipt increases total cash and every cash payment decreases it. Since the net increase in cash is $16,500 , adding that to the beginning cash of $1,200 gives $17,700 .
                                Therefore, Option D is correct.


                                NEW QUESTION # 61
                                A company presently uses traditional volume-based costing to allocate overhead to its products.
                                The following table provides information on two of the company's products:
                                Product A
                                Product B
                                Selling price
                                $8
                                $12
                                Direct material
                                $2
                                $3
                                Direct labor
                                $1
                                $2
                                Applied overhead
                                $3
                                $4
                                Gross margin
                                $2
                                $3
                                Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
                                How would this change in the way overhead is allocated affect the selling price of both products?

                                Answer: D

                                Explanation:
                                The correct answer is C . Under activity-based costing (ABC) , overhead is reassigned based on the activities that actually drive cost consumption. ABC often reveals that one product was previously undercosted while another was overcosted under traditional volume-based allocation. OpenStax explains that ABC can shift overhead between products and provide more accurate product-cost information for pricing and decision- making.
                                For Product A , the new overhead rises from $3 to $8 , increasing total unit cost from $6 ($2 + $1 + $3) to
                                $11 ($2 + $1 + $8). Since the current selling price is only $8 , Product A is now shown as underpriced, so its selling price would likely need to increase . For Product B , overhead falls from $4 to $2 , reducing total unit cost from $9 to $7 . With a current selling price of $12 , Product B appears more profitable than previously believed, so management could choose to decrease its price if needed for competitive reasons. Therefore, the most logical result is Product A price up, Product B price down , which is Option C .


                                NEW QUESTION # 62
                                Which ratio provides a measure of how well a company turns sales into profits?

                                Answer: D

                                Explanation:
                                The correct answer is A. Return on sales . Return on sales, also called profit margin or net profit margin , measures how effectively a company converts sales revenue into net income. It is commonly calculated as Net income ÷ Sales . OpenStax explains that this ratio shows how much of each sales dollar remains as profit after all expenses, including taxes, have been deducted. A higher ratio generally indicates stronger profitability and better cost control relative to revenue.
                                Option B, return on costs , is not the standard ratio named in basic financial analysis for this purpose. Option C, return on expenses , is also not the conventional measure used in the ratio formulas you listed. Option D, return on profit , is not a recognized standard profitability ratio in introductory accounting frameworks.
                                Since the question asks specifically about how well a company turns sales into profits , the ratio that directly measures that relationship is return on sales . This ratio is widely used in financial statement analysis to compare operating performance across periods and across firms, especially within the same industry.


                                NEW QUESTION # 63
                                Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received?

                                Answer: D

                                Explanation:
                                The correct answer is D . The control designed to prevent payment for goods not actually received is the receiving function's preparation of a receiving report , which is then sent to accounts payable and matched against the supplier invoice and purchase order. This is the essence of a three-way match : purchase order, receiving report, and vendor invoice. AccountingTools explains that payables staff should match the supplier invoice to the related purchase order and proof of receipt before authorizing payment.
                                Option A is helpful for controlling check completeness and sequence, but it does not verify quantities received. Option B adds authorization control over disbursements, but it also does not confirm whether the shipment matched the invoice. Option C helps ensure purchases are approved before ordering, but it still does not prove what was actually delivered. The receiving department's counting and inspection of goods, followed by forwarding the receiving documentation to accounts payable, directly addresses the risk that a supplier invoice includes more items than were received. Therefore, the best internal control is Option D .


                                NEW QUESTION # 64
                                Which two costs would be used to calculate inventory overhead?
                                Choose 2 answers.

                                Answer: C,D

                                Explanation:
                                The correct answers are A. Factory electricity costs and C. Production employee benefits . Inventory overhead, more commonly called manufacturing overhead , includes indirect production costs incurred in the factory that cannot be traced directly to a specific unit of output. Factory utilities such as electricity used to run production equipment are standard manufacturing overhead items, and production-related employee benefits are also part of factory overhead when they relate to manufacturing personnel rather than direct administrative staff. AccountingCoach lists factory electricity and factory personnel costs other than direct labor as examples of manufacturing overhead.
                                Option B. Administrative office electricity costs and D. Administrative employee benefits are not inventory overhead. They are period costs or administrative expenses because they relate to general office operations rather than production. Inventory costs include those necessary to bring goods to a saleable condition, while administrative costs are expensed in the period incurred. Therefore, the two costs that belong in inventory overhead are the factory-related utility cost and the production-related employee benefit cost.
                                That makes A and C the correct answers.


                                NEW QUESTION # 65
                                ......

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