WGU C213 FINAL EXAM ACCOUNTING FOR
DECISION MAKERS 2026 UPDATED PRACTICE
QUESTIONS AND SOLUTIONS
◉ Motivates correct behavior and reflects economic reality. Answer:
Good management accounting ABC=
◉ It would consume the highest amount of overhead cost per unit.
Answer: A low volume unique product would consume low or high
overhead costs?
◉ How much is needed to be sold to break even. Answer: Cost
Volume Profit Analysis (C-V-P) most fundamental question is?
◉ Controlling decisions, evaluating decisions, and planning. Answer:
CVP is useful to managers in
◉ PLANNING. Answer: CVP is primarily useful in:
◉ Mixed and variable costs, sales, revenue, and the # of product
sold. Answer: C-V-P key factors
,◉ Fixed and variable components. The mixed costs must be
separated into their fixed and variable costs in order to do the CVP.
Answer: Mixed costs:
◉ 1. Invoice by invoice, detail categorization. 2. Scattergraph
method, a visual approach. 3. high-low method, a computational
approach.. Answer: 3 approaches to do the CVP:
◉ Regression line=straight line that best fits amon all of the data
points. Answer: On the scattergraph (which is a historical
method/approach) what does regression line mean?
◉ Slope of total cost line. Answer: Scattergraph variable cost/hr=
◉ The y-intercept for the total cost line. Answer: Scattergraph fixed
cost=
◉ rise/run ($/hr) Increase in cost, increase in activity.. Answer:
Slope=
◉ Total cost. Answer: Variable cost + fixed cost =
,◉ Fixed cost. on the graph, fixed cost is located at the horizontal
point (x-axis) of zero units, and the vertical axis (y-axis) start of the
line.. Answer: Total cost - variable =
◉ both high and low and scattergraph.. Answer: Common method of
analyzing mixed costs
◉ Constant. Answer: Fixed cost increased, decreased, or is constant
as the number of units sold increases?
◉ Decrease (cost less to make mass amounts). Answer: Fixed costs
increase or decrease as the number of units increase?
◉ Will provide a profit if fixed costs are lowered. It contributes to
making the fixed costs. Answer: Contribution margin
◉ contribution margin. Answer: Sales-variable costs
◉ Contribution margin-total fixed cost. Answer: net income=
◉ Shows total profit (not total revenue and cost) y-axis= money, x-
axis= level of actions. Profit is plotted at 2 points.. Answer: Profit
graph
, ◉ Stepped costs. Answer: Costs that would not be graphed on a
straight line=
◉ Proportion of sales revenue represented by each of a companies
products. Answer: Sales Mix
◉ contribution margin. Answer: Change in sales mix can affect profit
because not all products have the same...
◉ contribution margin ratios. Answer: Managers should put greater
emphasis on the sales of a product with higher...
◉ Increase advertising of the product. Answer: A multi product firm
can do what to promote a high contribution margin of a product?
◉ the more money a company looses. Answer: The higher the
operating leverage...
◉ Decreases fixed cost and increases variable costs. Answer:
conservative cost structure=
◉ Fixed and variable costs. Answer: Operating leverage=
DECISION MAKERS 2026 UPDATED PRACTICE
QUESTIONS AND SOLUTIONS
◉ Motivates correct behavior and reflects economic reality. Answer:
Good management accounting ABC=
◉ It would consume the highest amount of overhead cost per unit.
Answer: A low volume unique product would consume low or high
overhead costs?
◉ How much is needed to be sold to break even. Answer: Cost
Volume Profit Analysis (C-V-P) most fundamental question is?
◉ Controlling decisions, evaluating decisions, and planning. Answer:
CVP is useful to managers in
◉ PLANNING. Answer: CVP is primarily useful in:
◉ Mixed and variable costs, sales, revenue, and the # of product
sold. Answer: C-V-P key factors
,◉ Fixed and variable components. The mixed costs must be
separated into their fixed and variable costs in order to do the CVP.
Answer: Mixed costs:
◉ 1. Invoice by invoice, detail categorization. 2. Scattergraph
method, a visual approach. 3. high-low method, a computational
approach.. Answer: 3 approaches to do the CVP:
◉ Regression line=straight line that best fits amon all of the data
points. Answer: On the scattergraph (which is a historical
method/approach) what does regression line mean?
◉ Slope of total cost line. Answer: Scattergraph variable cost/hr=
◉ The y-intercept for the total cost line. Answer: Scattergraph fixed
cost=
◉ rise/run ($/hr) Increase in cost, increase in activity.. Answer:
Slope=
◉ Total cost. Answer: Variable cost + fixed cost =
,◉ Fixed cost. on the graph, fixed cost is located at the horizontal
point (x-axis) of zero units, and the vertical axis (y-axis) start of the
line.. Answer: Total cost - variable =
◉ both high and low and scattergraph.. Answer: Common method of
analyzing mixed costs
◉ Constant. Answer: Fixed cost increased, decreased, or is constant
as the number of units sold increases?
◉ Decrease (cost less to make mass amounts). Answer: Fixed costs
increase or decrease as the number of units increase?
◉ Will provide a profit if fixed costs are lowered. It contributes to
making the fixed costs. Answer: Contribution margin
◉ contribution margin. Answer: Sales-variable costs
◉ Contribution margin-total fixed cost. Answer: net income=
◉ Shows total profit (not total revenue and cost) y-axis= money, x-
axis= level of actions. Profit is plotted at 2 points.. Answer: Profit
graph
, ◉ Stepped costs. Answer: Costs that would not be graphed on a
straight line=
◉ Proportion of sales revenue represented by each of a companies
products. Answer: Sales Mix
◉ contribution margin. Answer: Change in sales mix can affect profit
because not all products have the same...
◉ contribution margin ratios. Answer: Managers should put greater
emphasis on the sales of a product with higher...
◉ Increase advertising of the product. Answer: A multi product firm
can do what to promote a high contribution margin of a product?
◉ the more money a company looses. Answer: The higher the
operating leverage...
◉ Decreases fixed cost and increases variable costs. Answer:
conservative cost structure=
◉ Fixed and variable costs. Answer: Operating leverage=
