WGU C213 PA & OA Study Guide Exam Newest
2026 Questions and Correct Detailed Answers
Already Graded A+
A company produces five different products. The products are highly
differentiated and have significantly different demands for their use of overhead
costs. - CORRECT ANSWER-In which scenario would activity-based costing be
more appropriate than traditional costing?
Batch-level activities - CORRECT ANSWER-Which category of ABC activities are
machine setup and material movement costs associated with?
The number of race participants and spectators - CORRECT ANSWER-The
director of a marathon race wants to assign the cost of having police officers
along the race route to manage crowd control.
Which consideration is an appropriate cost driver?
,The price of Product B should be increased. - CORRECT ANSWER-Company A
calculated the following information under traditional and activity-based costing
for the production and sale of 1,000 units of Product B:
Traditional ABC
Sales $100,000 $100,000
Cost of goods sold $70,000 $110,000
Gross margin $30,000 ($10,000)
Which decision should be made about the selling price of Product B?
Profits
Cash - CORRECT ANSWER-Which two concepts are studied in cost-volume-
profit analysis?
Total fixed costs will stay the same.
Fixed costs per unit will decrease. - CORRECT ANSWER-What are two impacts
on costs as sales volume increases?
Credit limits were increased for all customers - CORRECT ANSWER-A company
is experiencing an increase in their bad debt expense.
,Which change in credit policy would cause this increase?
Overstates owner's equity - CORRECT ANSWER-If a company does NOT record
accrued wages expense at the end of the year, how does this affect the year-end
financial statements?
Overstates assets - CORRECT ANSWER-Failure to record the used portion of
supplies on hand during the month has the following effect on the financial
statements prepared at the end of the month
Safeguards - CORRECT ANSWER-Which of the following is NOT a reason for
problems occurring in the financial statements?
Failure to record depreciation expense - CORRECT ANSWER-Which one of the
following errors causes net income to be overstated?
The impact a business's activities have on its overall financial performance -
CORRECT ANSWER-What does accounting focus on?
, Statement of cash flows - CORRECT ANSWER-Which report summarizes cash
collections and cash expenditures from operating, investing, and financing
activities over a period of time?
Employees - CORRECT ANSWER-Which users would have a primary concern
with an organization's ability to provide healthcare benefits?
An increase in its compatibility to other companies - CORRECT ANSWER-Which
benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB) - CORRECT
ANSWER-Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
Information technology - CORRECT ANSWER-What has had the most
significant impact on Accounting practices?
Ownership and Debt - CORRECT ANSWER-What two items of information are
revealed on the balance sheet?
2026 Questions and Correct Detailed Answers
Already Graded A+
A company produces five different products. The products are highly
differentiated and have significantly different demands for their use of overhead
costs. - CORRECT ANSWER-In which scenario would activity-based costing be
more appropriate than traditional costing?
Batch-level activities - CORRECT ANSWER-Which category of ABC activities are
machine setup and material movement costs associated with?
The number of race participants and spectators - CORRECT ANSWER-The
director of a marathon race wants to assign the cost of having police officers
along the race route to manage crowd control.
Which consideration is an appropriate cost driver?
,The price of Product B should be increased. - CORRECT ANSWER-Company A
calculated the following information under traditional and activity-based costing
for the production and sale of 1,000 units of Product B:
Traditional ABC
Sales $100,000 $100,000
Cost of goods sold $70,000 $110,000
Gross margin $30,000 ($10,000)
Which decision should be made about the selling price of Product B?
Profits
Cash - CORRECT ANSWER-Which two concepts are studied in cost-volume-
profit analysis?
Total fixed costs will stay the same.
Fixed costs per unit will decrease. - CORRECT ANSWER-What are two impacts
on costs as sales volume increases?
Credit limits were increased for all customers - CORRECT ANSWER-A company
is experiencing an increase in their bad debt expense.
,Which change in credit policy would cause this increase?
Overstates owner's equity - CORRECT ANSWER-If a company does NOT record
accrued wages expense at the end of the year, how does this affect the year-end
financial statements?
Overstates assets - CORRECT ANSWER-Failure to record the used portion of
supplies on hand during the month has the following effect on the financial
statements prepared at the end of the month
Safeguards - CORRECT ANSWER-Which of the following is NOT a reason for
problems occurring in the financial statements?
Failure to record depreciation expense - CORRECT ANSWER-Which one of the
following errors causes net income to be overstated?
The impact a business's activities have on its overall financial performance -
CORRECT ANSWER-What does accounting focus on?
, Statement of cash flows - CORRECT ANSWER-Which report summarizes cash
collections and cash expenditures from operating, investing, and financing
activities over a period of time?
Employees - CORRECT ANSWER-Which users would have a primary concern
with an organization's ability to provide healthcare benefits?
An increase in its compatibility to other companies - CORRECT ANSWER-Which
benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB) - CORRECT
ANSWER-Which body regulates a certified public accounting firm's audit
practices when the firm is auditing a large publicly traded company?
Information technology - CORRECT ANSWER-What has had the most
significant impact on Accounting practices?
Ownership and Debt - CORRECT ANSWER-What two items of information are
revealed on the balance sheet?
