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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What does management accounting present?

A) Information regarding the qualifications of managers to help shareholders make decisions
B) Data to predict inconsistencies in finances to help users within a company make decisions
C) Information regarding a business's overall economic performance to help shareholders make decisions
D) Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions

2. A company allocates overhead based on the number of shoes produced.
The company estimates the following costs and shoe production for the upcoming year:
Estimated total overhead = $1,250,000
Estimated number of shoes = 4,000,000
Actual overhead = $1,350,000
Actual number of shoes = 4,100,000
What is the predetermined overhead rate?

A) $0.313
B) $0.343
C) $0.329
D) $0.375

3. Which ratio provides a measure of how well a company turns sales into profits?

A) Return on expenses
B) Return on profit
C) Return on sales
D) Return on costs

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

5. How does management accounting differ from financial accounting?

A) Management accounting presents an unbiased view of a company's economic performance
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 is restricted to providing financial rather than nonfinancial data

Solutions: