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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What is the impact on costs as sales volume decreases?

A) Total variable costs will decrease in direct proportion
B) Total fixed costs will increase in direct proportion
C) Total variable costs will increase in direct proportion
D) Total fixed costs will decrease in direct proportion

2. Which balance sheet category reflects what a company owns that can be turned into cash or used to generate cash?

A) Owners' equity
B) Liabilities
C) Revenues
D) Assets

3. 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) No change should be made to the selling price
B) The selling price for only Products A and C should increase
C) The selling price for only Product B should increase
D) The selling price should increase for all three products

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

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

5. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Selling costs
B) Direct labor costs
C) Indirect labor costs
D) Raw materials costs

Solutions: