WGU C213 Final Exam Accounting for
Decision Makers Actual Questions and
Verified Answers, with
rationales 2026\2027 update
This Exam contains:
Guarantee passing score
Questions and Ansẉers
format set of multiple-choice
Expert-Verified rationales
Verified ẉith trusted textbooks
,───────────────────────────────────────────────────────
─
1. Which of the following best distinguishes managerial accounting
from financial accounting?
A) Managerial accounting follows GAAP while financial accounting
does not
B) Managerial accounting focuses on providing information to
internal users while financial accounting focuses on external users
C) Financial accounting is forward-looking while managerial
accounting is historical
D) Managerial accounting is required by law while financial
accounting is optional
Answer: B
Rationale: Managerial accounting provides information to internal
decision-makers (managers) for planning, controlling, and decision-
making. Financial accounting provides information to external users
such as investors, creditors, and regulators.
2. Which of the following is a characteristic of managerial
accounting information?
A) Must be prepared in accordance with GAAP
B) Is required to be audited by an independent CPA
C) Is forward-looking and flexible in format
D) Is prepared annually and quarterly for regulatory filing
Answer: C
Rationale: Managerial accounting information is not bound by GAAP,
is not required to be audited, and can be prepared at any time
interval. It emphasizes future-oriented data to support internal
decision-making.
,3. A company incurs $8,000 in direct materials, $5,000 in direct
labor, and $3,000 in manufacturing overhead. What is the total
prime cost?
A) $16,000
B) $13,000
C) $8,000
D) $11,000
Answer: B
Rationale: Prime cost = Direct Materials + Direct Labor = $8,000 +
$5,000 = $13,000. Prime cost excludes manufacturing overhead.
4. Using the same data (direct materials $8,000, direct labor
$5,000, manufacturing overhead $3,000), what is the total
conversion cost?
A) $13,000
B) $8,000
C) $11,000
D) $16,000
Answer: B
Rationale: Conversion cost = Direct Labor + Manufacturing Overhead
= $5,000 + $3,000 = $8,000. Conversion cost excludes direct
materials.
5. Which of the following is a product cost?
A) Sales commissions
B) Advertising expense
C) Depreciation on factory equipment
D) Office salaries
, Answer: C
Rationale: Product costs include direct materials, direct labor, and
manufacturing overhead. Depreciation on factory equipment is part
of manufacturing overhead. The other options are period costs.
6. Which of the following is a period cost?
A) Factory supervisor's salary
B) Indirect materials used in production
C) Delivery costs to customers
D) Factory utilities
Answer: C
Rationale: Period costs are expensed in the period incurred and
include selling and administrative expenses. Delivery costs to
customers are a selling expense. The other options are
manufacturing overhead (product costs).
7. When production exceeds sales, which costing method will report
higher net operating income?
A) Variable costing
B) Absorption costing
C) Both methods report the same net operating income
D) It depends on the selling price
Answer: B
Rationale: Under absorption costing, fixed manufacturing overhead
is included in unit product costs. When production exceeds sales,
some fixed overhead remains in ending inventory, deferring the
expense to a future period, resulting in higher net income than
variable costing.
Decision Makers Actual Questions and
Verified Answers, with
rationales 2026\2027 update
This Exam contains:
Guarantee passing score
Questions and Ansẉers
format set of multiple-choice
Expert-Verified rationales
Verified ẉith trusted textbooks
,───────────────────────────────────────────────────────
─
1. Which of the following best distinguishes managerial accounting
from financial accounting?
A) Managerial accounting follows GAAP while financial accounting
does not
B) Managerial accounting focuses on providing information to
internal users while financial accounting focuses on external users
C) Financial accounting is forward-looking while managerial
accounting is historical
D) Managerial accounting is required by law while financial
accounting is optional
Answer: B
Rationale: Managerial accounting provides information to internal
decision-makers (managers) for planning, controlling, and decision-
making. Financial accounting provides information to external users
such as investors, creditors, and regulators.
2. Which of the following is a characteristic of managerial
accounting information?
A) Must be prepared in accordance with GAAP
B) Is required to be audited by an independent CPA
C) Is forward-looking and flexible in format
D) Is prepared annually and quarterly for regulatory filing
Answer: C
Rationale: Managerial accounting information is not bound by GAAP,
is not required to be audited, and can be prepared at any time
interval. It emphasizes future-oriented data to support internal
decision-making.
,3. A company incurs $8,000 in direct materials, $5,000 in direct
labor, and $3,000 in manufacturing overhead. What is the total
prime cost?
A) $16,000
B) $13,000
C) $8,000
D) $11,000
Answer: B
Rationale: Prime cost = Direct Materials + Direct Labor = $8,000 +
$5,000 = $13,000. Prime cost excludes manufacturing overhead.
4. Using the same data (direct materials $8,000, direct labor
$5,000, manufacturing overhead $3,000), what is the total
conversion cost?
A) $13,000
B) $8,000
C) $11,000
D) $16,000
Answer: B
Rationale: Conversion cost = Direct Labor + Manufacturing Overhead
= $5,000 + $3,000 = $8,000. Conversion cost excludes direct
materials.
5. Which of the following is a product cost?
A) Sales commissions
B) Advertising expense
C) Depreciation on factory equipment
D) Office salaries
, Answer: C
Rationale: Product costs include direct materials, direct labor, and
manufacturing overhead. Depreciation on factory equipment is part
of manufacturing overhead. The other options are period costs.
6. Which of the following is a period cost?
A) Factory supervisor's salary
B) Indirect materials used in production
C) Delivery costs to customers
D) Factory utilities
Answer: C
Rationale: Period costs are expensed in the period incurred and
include selling and administrative expenses. Delivery costs to
customers are a selling expense. The other options are
manufacturing overhead (product costs).
7. When production exceeds sales, which costing method will report
higher net operating income?
A) Variable costing
B) Absorption costing
C) Both methods report the same net operating income
D) It depends on the selling price
Answer: B
Rationale: Under absorption costing, fixed manufacturing overhead
is included in unit product costs. When production exceeds sales,
some fixed overhead remains in ending inventory, deferring the
expense to a future period, resulting in higher net income than
variable costing.
