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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

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

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

2. Which internal control is intended to ensure that a company does not mistakenly pay a supplier for an invoice that includes more items than were actually received?

A) The inventory department counts and inspects items as received and forwards the receiving record to accounts payable
B) The company requires two signatures on each check in order for a payment to be sent
C) The accounts payable department uses prenumbered checks in the payment of supplier invoices
D) The purchasing department authorizes the order of all items before they occur

3. What is true regarding the use of International Financial Reporting Standards (IFRS)?

A) IFRS are seldom used by non-U.S. companies
B) IFRS may be used instead of generally accepted accounting principles (GAAP) by any U.S.-based corporation
C) IFRS are required to be used by the Securities and Exchange Commission (SEC)
D) IFRS are commonly required to be used in Asia

4. What can be determined when a firm performs an external audit of a company's financial statements?

A) Whether a company's financial statements indicate it made a profit
B) Whether a company's financial statements fairly reflect its financial position
C) Whether a company's financial statements indicate that the company has to pay income taxes
D) Whether a company's financial statements were prepared by a trained bookkeeper

5. A company manufactures leather products and has recently switched to the activity-based costing (ABC) method. It needs to determine the cost of its leather wallets. The company is already aware of its DM and DL costs.
What is the first step to calculating the cost of the product?

A) Calculate G & A
B) Assign overhead costs
C) Identify overhead cost activities
D) Double check the DM & DL calculations

Solutions: