WGU Accounting for Decision Makers C213 VAC2 - Accounting-for-Decision-Makers Exam Questions

QUESTION NO: 1
A company has three product lines and has historically used the traditional costing system to allocate overhead costs to each product line. Due to significant differences in the production processes for the three product lines, the company implemented an activity-based costing study and identified the activity-based cost for each product, as shown in the following table.
Product A
Product B
Product C
Traditional cost per unit
$558
$1,375
$1,211
Activity-based cost per unit
$675
$1,585
$1,350
Selling price per unit
$650
$1,450
$1,300
What do these data points reveal about the selling price of this company's products?

QUESTION NO: 2
What can be deduced when a company has an asset turnover of 0.95?

QUESTION NO: 3
Who does Sarbanes-Oxley apply to?

QUESTION NO: 4
Which two examples represent financial statement errors?
Choose 2 answers.

QUESTION NO: 5
Which costs are found in a manufacturing company rather than a service-oriented company?

QUESTION NO: 6
What is the impact on costs as sales volume decreases?

QUESTION NO: 7
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?

QUESTION NO: 8
What does it mean if a company has a debt ratio of 101.5%?