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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

A) The impact of past transactions on a business organization's profit margin
B) The impact of a change in a business organization's number of units sold to reach a certain profit margin in the future
C) The impact of past income tax costs on a business organization's profit margin
D) The impact that a change in cost would have on a business organization's profit margin in the future

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

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

3. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

A) 3,000
B) 6,000
C) 4,500
D) 2,000

4. What are the costs associated with two or more business units called?

A) Variable costs
B) Product costs
C) Direct costs
D) Indirect costs

5. The following list provides partial financial information for a company.
Beginning cash balance = $1,200
Received cash from sales of goods = $16,000
Paid wages and salaries = $4,500
Received cash from non-trading securities = $5,000
Paid cash for plant assets = $6,000
Received cash from loans = $8,000
Paid cash in repayment of loans = $2,000
What is the ending cash balance for this company?

A) $16,500
B) $17,700
C) $18,700
D) $20,000

Solutions: