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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 used primarily for internal planning, control, and evaluation
C) Management accounting is not used to gain a competitive advantage in the marketplace
D) Management accounting presents an unbiased view of a company's economic performance

2. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

A) The firm cannot be retained only by the CFO
B) The firm cannot use any forms of advertising to obtain new audit clients
C) The firm cannot audit a company for more than five years
D) The firm cannot provide several nonaudit services such as internal audit outsourcing to its audit clients

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) $1,462,500
C) $550,000
D) $412,500

4. Match each accounting term with its definition.
Answer options may be used more than once or not at all.
Select your answer from the pull-down list.

5. What is a cost incurred as part of the production process?

A) Sunk cost
B) Raw materials cost
C) Opportunity cost
D) Period cost

Solutions: