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

SectionObjectives
Financial Accounting Fundamentals- Understanding the accounting cycle
- Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows)
- Accrual vs. cash basis accounting
- Recording transactions and adjusting entries
Managerial Accounting Concepts- Job order and process costing
- Contribution margin and break-even analysis
- Cost classification and behavior (fixed, variable, mixed costs)
- Cost-Volume-Profit (CVP) analysis
Financial Statement Analysis- Horizontal and vertical analysis
- Ratio analysis (liquidity, profitability, solvency, efficiency ratios)
- Interpreting financial data for decision-making purposes
Decision Making and Performance Evaluation- Make-or-buy and special order decisions
- Relevant costs for decision making
- Capital budgeting techniques (NPV, IRR, Payback Period)
- Balanced Scorecard concepts
- Responsibility accounting and performance metrics
Budgeting and Planning- Financial budgets (cash budget, budgeted income statement, budgeted balance sheet)
- Variance analysis
- Master budget components
- Operating budgets (sales, production, direct materials, direct labor, overhead)

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

Question #1

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. No change should be made to the selling price
  • C. The selling price for only Product B should increase
  • D. The selling price should increase for all three products
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Correct Answer: D  🗳️

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Question #2

What does the overall economic performance of a company for a given time period represent?

  • A. The net income of the company
  • B. Whether or not a company's sales exceed the costs of the products sold for a given time period
  • C. Whether or not cash received from sales exceeds cash paid for business expenses for a given time period
  • D. The overall market value of the company
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Correct Answer: A  🗳️

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Question #3

Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

  • A. $1,875,000
  • B. $412,500
  • C. $550,000
  • D. $1,462,500
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Correct Answer: A  🗳️

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Question #4

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

  • A. Cash before interest and taxes of $11,000 / cash paid for acquisitions of $1,000
  • B. Cash before interest and taxes of $11,000 / cash from operations of $1,000
  • C. Cash before interest and taxes of $11,000 / cash paid for interest of $1,000
  • D. Cash before interest and taxes of $11,000 / cash paid for income taxes of $1,000
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Correct Answer: C  🗳️

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Question #5

The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

  • A. -0.01
  • B. 2.45
  • C. 1.80
  • D. 1.35
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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