Page | 1
ACCOUNTING FOR DECISION
MAKERS C213 WGU 2025
QUESTIONS AND ANSWERS.
Gather evidence to be able to certify the fairness of the
financial statements through:
Interviews
Observation
Sampling
Confirmation
Analytical procedures -correct answer - External auditors
Requiring independent audits
Reviewing financial statements itself
Sanctioning firms that violate its standards -correct answer -
The SEC adds credibility to financial statements by
Requiring independent audits
Management desire to improve -correct answer - Good
management accounting is motivated by:
, Page | 2
Unique competitive tool, Both financial and non financial data,
Data usually kept secret within the company,Used for internal
planning, control, and evaluation -correct answer -
Management accounting
Uniform across companies (generally accepted accounting
principles), Restricted to financial data, data is made
public,Used primarily by investors and creditors in deciding
whether to provide capital to the company. -correct answer -
Financial accounting
Manufacturing overhead -correct answer - The allocation of
which of the following can cause the greatest errors when
computing product costs?
Activities that consume overhead cost -correct answer - ABC
assume that:
Products consume overhead costs. -correct answer -
Traditional product costing systems (e.g. job order costing and
process costing) usually assume that:
, Page | 3
Identify overhead cost activities, analyze individual overhead
costs in terms of those cost activities, identify measurable cost
drivers, assign overhead, and use the cost data to make
decisions -correct answer - 5 steps of ABC system
A unit-level item associated with the overhead cost activity
"operating the ice cream production process." -correct answer -
Machine depreciation.
A facility support item associated with the overhead cost
activity "keeping the factory open." -correct answer - Building
depreciation.
Building insurance. A facility support item associated with the
overhead cost activity "keeping the factory open. -correct
answer - Building insurance.
Security guards. A facility support item associated with the
overhead cost activity "keeping the factory open." -correct
answer - Security guards.
, Page | 4
activities that take place each time a unit of product is
produced. Examples:• Machine maintenance
Machine depreciation
Electricity and other energy cost -correct answer - Unit—
activities that take place in order to support a batch or
production run, regardless of the size of the batch. Examples:•
Inspections
Machine setups
Movement of and accounting for materials -correct answer
- Batch
activities that take place in order to support a product line,
regardless of the number of batches or individual units actually
produced. Examples:• Engineering product design
Storage in special warehouses
ACCOUNTING FOR DECISION
MAKERS C213 WGU 2025
QUESTIONS AND ANSWERS.
Gather evidence to be able to certify the fairness of the
financial statements through:
Interviews
Observation
Sampling
Confirmation
Analytical procedures -correct answer - External auditors
Requiring independent audits
Reviewing financial statements itself
Sanctioning firms that violate its standards -correct answer -
The SEC adds credibility to financial statements by
Requiring independent audits
Management desire to improve -correct answer - Good
management accounting is motivated by:
, Page | 2
Unique competitive tool, Both financial and non financial data,
Data usually kept secret within the company,Used for internal
planning, control, and evaluation -correct answer -
Management accounting
Uniform across companies (generally accepted accounting
principles), Restricted to financial data, data is made
public,Used primarily by investors and creditors in deciding
whether to provide capital to the company. -correct answer -
Financial accounting
Manufacturing overhead -correct answer - The allocation of
which of the following can cause the greatest errors when
computing product costs?
Activities that consume overhead cost -correct answer - ABC
assume that:
Products consume overhead costs. -correct answer -
Traditional product costing systems (e.g. job order costing and
process costing) usually assume that:
, Page | 3
Identify overhead cost activities, analyze individual overhead
costs in terms of those cost activities, identify measurable cost
drivers, assign overhead, and use the cost data to make
decisions -correct answer - 5 steps of ABC system
A unit-level item associated with the overhead cost activity
"operating the ice cream production process." -correct answer -
Machine depreciation.
A facility support item associated with the overhead cost
activity "keeping the factory open." -correct answer - Building
depreciation.
Building insurance. A facility support item associated with the
overhead cost activity "keeping the factory open. -correct
answer - Building insurance.
Security guards. A facility support item associated with the
overhead cost activity "keeping the factory open." -correct
answer - Security guards.
, Page | 4
activities that take place each time a unit of product is
produced. Examples:• Machine maintenance
Machine depreciation
Electricity and other energy cost -correct answer - Unit—
activities that take place in order to support a batch or
production run, regardless of the size of the batch. Examples:•
Inspections
Machine setups
Movement of and accounting for materials -correct answer
- Batch
activities that take place in order to support a product line,
regardless of the number of batches or individual units actually
produced. Examples:• Engineering product design
Storage in special warehouses
