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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. 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) $230,000
B) $130,000
C) $40,000
D) $70,000

3. A corporation has liabilities and owners' equity of $100 million and $40 million respectively. What is the amount of the asset balance in this case?

A) $25 million
B) $80 million
C) $60 million
D) $140 million

4. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more current liabilities than current assets
B) The company has 1.5% more total liabilities than gross sales
C) The company has 1.5% more total liabilities than net income
D) The company has 1.5% more total liabilities than total assets

5. Which overhead cost is associated with batch-level activities?

A) Machine setups
B) Factory insurance
C) Property taxes
D) Product engineering wages

Solutions: