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

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

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

3. Last year, X Corporation had sales of $500,000 and total expenses of $300,000. A manager of the company is entitled to get a sales commission of 10% of net profit.
What amount of sales commission is to be recognized at year-end?

A) $10,000
B) $50,000
C) $20,000
D) $30,000

4. What can be deduced when a company has an asset turnover of 0.95?

A) The company was able to generate $0.95 in profit for each dollar in assets
B) The company was able to generate $0.95 in liabilities for each dollar in assets
C) The company was able to generate $0.95 in sales for each dollar in assets
D) The company was able to generate $0.95 in equity for each dollar in assets

5. Which two items increase net income?
Choose 2 answers.

A) Gain on sale of assets
B) Interest income
C) Income tax expense
D) Cost of sales

Solutions: