WGU C213 REAL EXAM 326 QUESTIONS AND
ANSWERS LATEST 2025 COMPLETE EXAM
.5 Steps in ABC - ANSWER-1. Identify overhead cost activities in each process
(Unit, Batch, Product Line, & Facility Support) for an example electricity,
2. Analyze individual overhead costs in terms of cost activities (cost pools: how
much OC is created by Unit, Batch, Product Line, & Facility = the end results,
3. Identify measurable cost drivers (we need cost drivers which is a numerical
measure that reflects the amount of an overhead cost caused by a particular
activity). Each overhead cost activities need a cost driver.
4. Assign overhead (
5. Use the ABC data to make decisions (
.A company has projected the following sales for the spring quarter of 2014:
April $200,000 May $250,000 June $275,000 65% of all sales are paid for with
cash. The remainder is on credit. The pattern for credit receivables collections
are: Month of Sale 60% Month After Sale 30% Second Month After Sale 10%
What are the forecasted cash collections for the month of June? - ANSWER-
$269,750
.A company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase? - ANSWER-Credit limits
were increased for all customers.
,.A company manufactures and sells widgets. The following information is
available:
• Each widget sells for $100. • The variable cost per widget is $50. • Total fixed
costs per month are $300,000.
How many widgets does the company need to sell each month to break even? -
ANSWER-6,000
.A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs? - ANSWER-Salary
cost of the receptionist
Advertising cost
.A company's asset mix is determined by - ANSWER-Dividing each asset item on
the balance sheet by total assets
.A company's asset mix is strongly influence by - ANSWER-The company's
industry
.A corporation has total liabilities of $300 million, total owners' equity of $100
million, and current assets of $50 million.
What is the value of the firm's long-term assets? - ANSWER-$350 million
,.A CVP graph is constructed as follows: - ANSWER-Draw the two axes with
dollars on the vertical axis and units on the horizontal axis.
Draw the fixed cost line, which is a horizontal line indicating the total amount of
fixed cost.
Draw the total cost line. This line starts on the vertical axis at the amount of
fixed cost, and the upward slope of the line is equal to the variable cost per unit.
Draw the total revenue line. This line starts at the origin ($0, 0 units), and the
upward slope of the line is equal to the selling price per unit.
Label the break-even point. This is the point where the total revenue and total
cost lines intersect.
.A measure of a company's performance that includes all items that are
expected to continue into the future is - - ANSWER-Income from Continuing
Operations
.A more accurate allocation of manufacturing overhead and product costing can
take place when costs are assigned on the basis of: - ANSWER-Cost drivers
.A profit graph is constructed as follows: - ANSWER-Draw the two axes with
dollars on the vertical axis and units on the horizontal axis.
, Place a point on the vertical axis equal to the loss the company will experience if
it has no sales. This loss is equal to the amount of fixed cost.
Place a second point, this time on the horizontal axis, indicating the number of
units the company needs to sell to break even.
Draw a line passing through these two points. This is the profit line.
.A wholesale bakery would normally recognize revenue when - ANSWER-goods
are delivered to the customer.
.Accounting - ANSWER-A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended to be
useful in making economic decisions."
.Accounting Equation - ANSWER-Assets = Liabilities + Owners' Equity
.Accounting information helps management to: - ANSWER-Decide what prices
to charge, how to control operations, and how to market products.
.Accounting-Related Ethics - ANSWER-Personal Certification
The CEO and CFO personally certify the financial statements and disclosures.
Code of ethics
The company must have a code of ethics.
ANSWERS LATEST 2025 COMPLETE EXAM
.5 Steps in ABC - ANSWER-1. Identify overhead cost activities in each process
(Unit, Batch, Product Line, & Facility Support) for an example electricity,
2. Analyze individual overhead costs in terms of cost activities (cost pools: how
much OC is created by Unit, Batch, Product Line, & Facility = the end results,
3. Identify measurable cost drivers (we need cost drivers which is a numerical
measure that reflects the amount of an overhead cost caused by a particular
activity). Each overhead cost activities need a cost driver.
4. Assign overhead (
5. Use the ABC data to make decisions (
.A company has projected the following sales for the spring quarter of 2014:
April $200,000 May $250,000 June $275,000 65% of all sales are paid for with
cash. The remainder is on credit. The pattern for credit receivables collections
are: Month of Sale 60% Month After Sale 30% Second Month After Sale 10%
What are the forecasted cash collections for the month of June? - ANSWER-
$269,750
.A company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase? - ANSWER-Credit limits
were increased for all customers.
,.A company manufactures and sells widgets. The following information is
available:
• Each widget sells for $100. • The variable cost per widget is $50. • Total fixed
costs per month are $300,000.
How many widgets does the company need to sell each month to break even? -
ANSWER-6,000
.A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs? - ANSWER-Salary
cost of the receptionist
Advertising cost
.A company's asset mix is determined by - ANSWER-Dividing each asset item on
the balance sheet by total assets
.A company's asset mix is strongly influence by - ANSWER-The company's
industry
.A corporation has total liabilities of $300 million, total owners' equity of $100
million, and current assets of $50 million.
What is the value of the firm's long-term assets? - ANSWER-$350 million
,.A CVP graph is constructed as follows: - ANSWER-Draw the two axes with
dollars on the vertical axis and units on the horizontal axis.
Draw the fixed cost line, which is a horizontal line indicating the total amount of
fixed cost.
Draw the total cost line. This line starts on the vertical axis at the amount of
fixed cost, and the upward slope of the line is equal to the variable cost per unit.
Draw the total revenue line. This line starts at the origin ($0, 0 units), and the
upward slope of the line is equal to the selling price per unit.
Label the break-even point. This is the point where the total revenue and total
cost lines intersect.
.A measure of a company's performance that includes all items that are
expected to continue into the future is - - ANSWER-Income from Continuing
Operations
.A more accurate allocation of manufacturing overhead and product costing can
take place when costs are assigned on the basis of: - ANSWER-Cost drivers
.A profit graph is constructed as follows: - ANSWER-Draw the two axes with
dollars on the vertical axis and units on the horizontal axis.
, Place a point on the vertical axis equal to the loss the company will experience if
it has no sales. This loss is equal to the amount of fixed cost.
Place a second point, this time on the horizontal axis, indicating the number of
units the company needs to sell to break even.
Draw a line passing through these two points. This is the profit line.
.A wholesale bakery would normally recognize revenue when - ANSWER-goods
are delivered to the customer.
.Accounting - ANSWER-A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended to be
useful in making economic decisions."
.Accounting Equation - ANSWER-Assets = Liabilities + Owners' Equity
.Accounting information helps management to: - ANSWER-Decide what prices
to charge, how to control operations, and how to market products.
.Accounting-Related Ethics - ANSWER-Personal Certification
The CEO and CFO personally certify the financial statements and disclosures.
Code of ethics
The company must have a code of ethics.
