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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. 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) $130,000
B) $230,000
C) $70,000
D) $40,000

2. Which action should a managerial accountant consider taking if confronted by an ethical conflict?

A) Confer with any stakeholder in the organization
B) Consult with a coworker
C) Report directly to the chief executive officer
D) Use an objective advisor confidentially

3. Which technique describes the practice of incurring debt but fully paying the debt over time?

A) Accounting management
B) Liability deferral
C) Income smoothing
D) Profit control

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

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

5. Which role do ethical standards have in management accounting?

A) To provide the management accountant with the ability to work with only companies that follow strict ethical principles
B) To prevent all unethical behavior of anyone the management accountant may work with
C) To provide the management accountant with the ability to know whether a person will act ethically or not
D) To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter

Solutions: