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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Financial Accounting Fundamentals | - Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) - Recording transactions and adjusting entries - Accrual vs. cash basis accounting - Understanding the accounting cycle |
| Decision Making and Performance Evaluation | - Make-or-buy and special order decisions - Capital budgeting techniques (NPV, IRR, Payback Period) - Responsibility accounting and performance metrics - Balanced Scorecard concepts - Relevant costs for decision making |
| Managerial Accounting Concepts | - Cost-Volume-Profit (CVP) analysis - Cost classification and behavior (fixed, variable, mixed costs) - Contribution margin and break-even analysis - Job order and process costing |
| Financial Statement Analysis | - Interpreting financial data for decision-making purposes - Horizontal and vertical analysis - Ratio analysis (liquidity, profitability, solvency, efficiency ratios) |
| Budgeting and Planning | - Master budget components - Operating budgets (sales, production, direct materials, direct labor, overhead) - Variance analysis - Financial budgets (cash budget, budgeted income statement, budgeted balance sheet) |
WGU Accounting for Decision Makers C213 VAC2 Sample Questions:
How are activity-based costing systems different from traditional costing systems?
- A. Activity-based costing systems are based on a single cost driver and traditional costing systems are based on multiple cost drivers
- B. Activity-based costing systems provide a more precise assignment of overhead costs when multiple products are manufactured than traditional costing systems do
- C. Activity-based costing systems are used with homogeneous products while traditional costing systems are used with heterogeneous products
- D. Activity-based costing systems require less time and expense to administer than traditional costing systems
Correct Answer: B 🗳️
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What does management accounting present?
- A. Detailed data regarding a business's overall economic performance to help outside stakeholders make decisions
- B. Data to predict inconsistencies in finances to help users within a company make decisions
- C. Information regarding the qualifications of managers to help shareholders make decisions
- D. Information regarding a business's overall economic performance to help shareholders make decisions
Correct Answer: B 🗳️
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Which financial statement is used to determine a company's income and expenses for a specific period?
- A. Statement of cash flows
- B. Income statement
- C. Statement of retained earnings
- D. Balance sheet
Correct Answer: B 🗳️
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Which organization establishes rules U.S. companies use to record and report accounting transactions?
- A. Internal Revenue Service
- B. Financial Accounting Standards Board
- C. Securities and Exchange Commission
- D. Accounting Principles Board
Correct Answer: B 🗳️
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What is the impact on costs as sales volume decreases?
- A. Total fixed costs will increase in direct proportion
- B. Total variable costs will increase in direct proportion
- C. Total variable costs will decrease in direct proportion
- D. Total fixed costs will decrease in direct proportion
Correct Answer: C 🗳️
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