WGU C213 COHORT PDFS (COMBINED
04252024) EXAM QUESTIONS AND
ANSWERS |GRADED A+
Cost-Volume-Profit Analysis - Correct Answer -Examines the relationship
between costs, volume, and profits
Break-Even Point - Correct Answer -Where total revenue equals total costs,
resulting in zero profit
Contribution Margin - Correct Answer -Selling price per unit minus variable
cost per unit
Gross Profit - Correct Answer -Revenue minus the cost of goods sold
Applied Overhead - Correct Answer -Overhead rate multiplied by units
produced
Activity-Based Costing - Correct Answer -Assigns costs to activities based on
their use of resources
Cost of Goods Sold - Correct Answer -Direct materials, direct labor, and
manufacturing overhead
Product Costs - Correct Answer -Total costs incurred in manufacturing a
product
1
,Pro Forma Calculations - Correct Answer -Forecasting financial results based
on assumptions
Transaction Analysis - Correct Answer -Examining the impact of business
transactions on financial statements
Prepaid Insurance - Correct Answer -Insurance paid in advance, expensed over
time
Advertising Expense - Correct Answer -Costs incurred for promoting products
or services
Times Interest Earned - Correct Answer -Ability to cover interest expenses
with operating income
Cash Flow Adequacy Ratio - Correct Answer -Assesses the ability to meet
financial obligations
Debt Ratio - Correct Answer -Proportion of a company's assets financed by
debt
Revenue Recognition - Correct Answer -Recording revenue when earned, not
necessarily when received
Accounting Equation - Correct Answer -Assets = Liabilities + Owners' Equity
Management Accounting - Correct Answer -Involves financial and
nonfinancial data for internal planning
Financial Accounting - Correct Answer -Follows GAAP, focuses on financial
data for external stakeholders
2
, Return-on-Investment (ROI) - Correct Answer -Indicator used in Management
Accounting for decision-making
Dupont - Correct Answer -Indicator used in Management Accounting for
analysis
GAAP - Correct Answer -Generally accepted accounting principles for
Financial Accounting
Managing - Correct Answer -One of the processes in Management Accounting
Controlling - Correct Answer -One of the processes in Management
Accounting
Evaluating - Correct Answer -One of the processes in Management Accounting
Short Run Planning - Correct Answer -Includes production and operational
planning
Long Run Planning - Correct Answer -Includes Strategic Planning and Capital
Budgeting
Fixed Costs - Correct Answer -Costs not dependent on production volume, like
rent
Variable Costs - Correct Answer -Costs that vary with production volume, like
materials
Period Costs - Correct Answer -Costs dependent on time, like rent or insurance
3
04252024) EXAM QUESTIONS AND
ANSWERS |GRADED A+
Cost-Volume-Profit Analysis - Correct Answer -Examines the relationship
between costs, volume, and profits
Break-Even Point - Correct Answer -Where total revenue equals total costs,
resulting in zero profit
Contribution Margin - Correct Answer -Selling price per unit minus variable
cost per unit
Gross Profit - Correct Answer -Revenue minus the cost of goods sold
Applied Overhead - Correct Answer -Overhead rate multiplied by units
produced
Activity-Based Costing - Correct Answer -Assigns costs to activities based on
their use of resources
Cost of Goods Sold - Correct Answer -Direct materials, direct labor, and
manufacturing overhead
Product Costs - Correct Answer -Total costs incurred in manufacturing a
product
1
,Pro Forma Calculations - Correct Answer -Forecasting financial results based
on assumptions
Transaction Analysis - Correct Answer -Examining the impact of business
transactions on financial statements
Prepaid Insurance - Correct Answer -Insurance paid in advance, expensed over
time
Advertising Expense - Correct Answer -Costs incurred for promoting products
or services
Times Interest Earned - Correct Answer -Ability to cover interest expenses
with operating income
Cash Flow Adequacy Ratio - Correct Answer -Assesses the ability to meet
financial obligations
Debt Ratio - Correct Answer -Proportion of a company's assets financed by
debt
Revenue Recognition - Correct Answer -Recording revenue when earned, not
necessarily when received
Accounting Equation - Correct Answer -Assets = Liabilities + Owners' Equity
Management Accounting - Correct Answer -Involves financial and
nonfinancial data for internal planning
Financial Accounting - Correct Answer -Follows GAAP, focuses on financial
data for external stakeholders
2
, Return-on-Investment (ROI) - Correct Answer -Indicator used in Management
Accounting for decision-making
Dupont - Correct Answer -Indicator used in Management Accounting for
analysis
GAAP - Correct Answer -Generally accepted accounting principles for
Financial Accounting
Managing - Correct Answer -One of the processes in Management Accounting
Controlling - Correct Answer -One of the processes in Management
Accounting
Evaluating - Correct Answer -One of the processes in Management Accounting
Short Run Planning - Correct Answer -Includes production and operational
planning
Long Run Planning - Correct Answer -Includes Strategic Planning and Capital
Budgeting
Fixed Costs - Correct Answer -Costs not dependent on production volume, like
rent
Variable Costs - Correct Answer -Costs that vary with production volume, like
materials
Period Costs - Correct Answer -Costs dependent on time, like rent or insurance
3
