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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) $130,000
B) $70,000
C) $230,000
D) $40,000

2. Which events represent financial information recorded in the accounting system of a business?

A) Business events that have already occurred
B) Business events that are likely to occur in the future
C) Personal events of each business owner during a year
D) Personal events of each business owner that are likely to occur in the future

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) $412,500
B) $550,000
C) $1,875,000
D) $1,462,500

4. A company has projected the following sales for the spring quarter of a year:
April = $300,000
May = $325,000
June = $375,000
Cash is used to pay for 65% of all sales. The remainder is on credit.
The pattern for credit receivables collections is as follows:
* Month of sale = 60%
* Month after sale = 30%
* Second month after sale = 10%
What are the projected cash sales for all three months of the spring quarter?

A) $350,000
B) $195,000
C) $650,000
D) $105,000

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 prevent all unethical behavior of anyone the management accountant may work with
D) To provide the management accountant with the ability to know whether a person will act ethically or not

Solutions: