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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. A company budgeted the following purchases for raw materials:
January = $10,000
February = $20,000
March = $25,000
April = $22,000
May = $27,000
June = $30,000
July = $24,000
The company has a policy of paying for 40% of purchases in the month of the purchase, 35% in the month following the purchase, and 25% in the second month following the purchase.
What are the budgeted cash disbursements for May based on this information?

A) $27,300
B) $18,500
C) $24,750
D) $25,050

2. Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A) Administrative office electricity costs
B) Production employee benefits
C) Administrative employee benefits
D) Factory electricity costs

3. How are activity-based costing systems different from traditional costing systems?

A) Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products
B) Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers
C) Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
D) Activity-based costing systems require less time and expense to administer than traditional costing systems

4. What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting?

A) The SEC supports company management and boards of directors in the effective discharge of their responsibilities
B) The SEC ensures that auditors have the resources and information necessary to provide valuable professional services
C) The SEC provides representation and training to controllers of public companies
D) The SEC ensures that financial statement users are provided with reliable information to use in decision- making

5. Which two items on an income statement result in decreased net income if they are increased?
Choose 2 answers.

A) Gains
B) Revenues
C) Cost of goods sold
D) Interest expense

Solutions: