7/17/25, 10:32 PM WGU C213 PA / OA Study Guide
WGU C213 PA / OA Study Guide test bank exam
2025 updated questions and verified answers
The Public Company Which body regulates a certified public accounting
Accounting Oversight firm's audit practices when the firm is auditing a large
Board (PACOB) publicly traded company?
What two items of information are revealed on the
Ownership and Debt
balance sheet?
Reliable Information that can be verified
Relevant Information having to do with the matter at hand
Information that is important enough to make a
Material
difference
Information related to recognizing losses as they
Conservatism
occur
The indirect method is What is known about the direct and indirect methods
more popular among of preparing statements of cash flow?
large U.S. companies
They search for and Which actions do internal auditors perform to assist in
investigate fraud. maintaining the integrity of financial statements?
&
They review financial
records and internal
controls.
They ensure that financial What is a significant role of the U.S. Securities and
statement users are Exchange Commission (SEC) in financial reporting?
provided with reliable
information to use in
decision making
1/16
,7/17/25, 10:32 PM WGU C213 PA / OA Study Guide
What is a cost that will change in the future based
Differential cost
upon the decision made?
Administrative expenses & Which are examples are period costs?
Selling expenses
A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson,
Salary cost of the Salary cost of the receptionist,
receptionist Advertising cost Advertising cost
Direct labor costs Which two costs are included when calculating
Overhead costs inventory costs?
A company produces five In which scenario would activity-based costing be
different products. The more appropriate than traditional costing?
products are highly
differentiated and have
significantly different
demands for their use of
overhead costs.
2/16
, 7/17/25, 10:32 PM WGU C213 PA / OA Study Guide
Which category of ABC activities are machine setup
Batch-level activities
and material movement costs associated with?
Company A calculated the following information
under traditional and activity-based costing for the
production and sale of 1,000 units of Product B:
The price of Product B Traditional ABC
should be increased. 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 Which two concepts are studied in cost-volume-profit
Level of Activity analysis?
3/16
WGU C213 PA / OA Study Guide test bank exam
2025 updated questions and verified answers
The Public Company Which body regulates a certified public accounting
Accounting Oversight firm's audit practices when the firm is auditing a large
Board (PACOB) publicly traded company?
What two items of information are revealed on the
Ownership and Debt
balance sheet?
Reliable Information that can be verified
Relevant Information having to do with the matter at hand
Information that is important enough to make a
Material
difference
Information related to recognizing losses as they
Conservatism
occur
The indirect method is What is known about the direct and indirect methods
more popular among of preparing statements of cash flow?
large U.S. companies
They search for and Which actions do internal auditors perform to assist in
investigate fraud. maintaining the integrity of financial statements?
&
They review financial
records and internal
controls.
They ensure that financial What is a significant role of the U.S. Securities and
statement users are Exchange Commission (SEC) in financial reporting?
provided with reliable
information to use in
decision making
1/16
,7/17/25, 10:32 PM WGU C213 PA / OA Study Guide
What is a cost that will change in the future based
Differential cost
upon the decision made?
Administrative expenses & Which are examples are period costs?
Selling expenses
A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs?
Answer Choices: Wood cost, Salary cost of the craftsperson,
Salary cost of the Salary cost of the receptionist,
receptionist Advertising cost Advertising cost
Direct labor costs Which two costs are included when calculating
Overhead costs inventory costs?
A company produces five In which scenario would activity-based costing be
different products. The more appropriate than traditional costing?
products are highly
differentiated and have
significantly different
demands for their use of
overhead costs.
2/16
, 7/17/25, 10:32 PM WGU C213 PA / OA Study Guide
Which category of ABC activities are machine setup
Batch-level activities
and material movement costs associated with?
Company A calculated the following information
under traditional and activity-based costing for the
production and sale of 1,000 units of Product B:
The price of Product B Traditional ABC
should be increased. 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 Which two concepts are studied in cost-volume-profit
Level of Activity analysis?
3/16
