WGU C213 PA 2026 CERTIFICATION
SCRIPT FULL QUESTIONS AND CORRECT
ANSWERS
◉A better insight for management so a business can perform more
effectively
&
A competitive edge to a business by providing its managers with the
detailed data needed to make decisions. Answer: What does
management accounting provide?
◉Management accounting is used primarily for internal planning,
control, and evaluation.. Answer: How does management accounting
differ from financial accounting?
◉Inventory. Answer: Which account is seen on the balance sheet of a
manufacturing company but not on the balance sheet of a service-
oriented company?
◉Differential cost. Answer: What is a cost that will change in the
future based upon the decision made?
,◉Administrative expenses &
Selling expenses. Answer: Which are examples are period costs?
◉Salary cost of the receptionist
Advertising cost. Answer: 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 receptionist, Advertising cost
◉To guide the resolution to possible ethical dilemmas that the
managerial accountant may encounter. Answer: What role do ethical
standards have in management accounting?
◉Direct labor costs
Overhead costs. Answer: Which two costs are included when
calculating inventory costs?
◉A company produces five different products. The products are
highly differentiated and have significantly different demands for
their use of overhead costs.. Answer: In which scenario would
activity-based costing be more appropriate than traditional costing?
,◉Batch-level activities. Answer: Which category of ABC activities are
machine setup and material movement costs associated with?
◉The number of race participants and spectators. Answer: The
director of a marathon race wants to assign the cost of having police
officers along the race route to manage crowd control.
Which consideration is an appropriate cost driver?
◉The price of Product B should be increased.. Answer: Company A
calculated the following information under traditional and activity-
based costing for the production and sale of 1,000 units of Product
B:
Traditional ABC
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
Cash. Answer: Which two concepts are studied in cost-volume-profit
analysis?
, ◉Total fixed costs will stay the same.
Fixed costs per unit will decrease.. Answer: What are two impacts on
costs as sales volume increases?
◉Credit limits were increased for all customers. Answer: A company
is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase?
◉Overstates owner's equity. Answer: If a company does NOT record
accrued wages expense at the end of the year, how does this affect
the year-end financial statements?
◉Overstates assets. Answer: Failure to record the used portion of
supplies on hand during the month has the following effect on the
financial statements prepared at the end of the month
◉Safeguards. Answer: Which of the following is NOT a reason for
problems occurring in the financial statements?
◉Failure to record depreciation expense. Answer: Which one of the
following errors causes net income to be overstated?
SCRIPT FULL QUESTIONS AND CORRECT
ANSWERS
◉A better insight for management so a business can perform more
effectively
&
A competitive edge to a business by providing its managers with the
detailed data needed to make decisions. Answer: What does
management accounting provide?
◉Management accounting is used primarily for internal planning,
control, and evaluation.. Answer: How does management accounting
differ from financial accounting?
◉Inventory. Answer: Which account is seen on the balance sheet of a
manufacturing company but not on the balance sheet of a service-
oriented company?
◉Differential cost. Answer: What is a cost that will change in the
future based upon the decision made?
,◉Administrative expenses &
Selling expenses. Answer: Which are examples are period costs?
◉Salary cost of the receptionist
Advertising cost. Answer: 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 receptionist, Advertising cost
◉To guide the resolution to possible ethical dilemmas that the
managerial accountant may encounter. Answer: What role do ethical
standards have in management accounting?
◉Direct labor costs
Overhead costs. Answer: Which two costs are included when
calculating inventory costs?
◉A company produces five different products. The products are
highly differentiated and have significantly different demands for
their use of overhead costs.. Answer: In which scenario would
activity-based costing be more appropriate than traditional costing?
,◉Batch-level activities. Answer: Which category of ABC activities are
machine setup and material movement costs associated with?
◉The number of race participants and spectators. Answer: The
director of a marathon race wants to assign the cost of having police
officers along the race route to manage crowd control.
Which consideration is an appropriate cost driver?
◉The price of Product B should be increased.. Answer: Company A
calculated the following information under traditional and activity-
based costing for the production and sale of 1,000 units of Product
B:
Traditional ABC
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
Cash. Answer: Which two concepts are studied in cost-volume-profit
analysis?
, ◉Total fixed costs will stay the same.
Fixed costs per unit will decrease.. Answer: What are two impacts on
costs as sales volume increases?
◉Credit limits were increased for all customers. Answer: A company
is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase?
◉Overstates owner's equity. Answer: If a company does NOT record
accrued wages expense at the end of the year, how does this affect
the year-end financial statements?
◉Overstates assets. Answer: Failure to record the used portion of
supplies on hand during the month has the following effect on the
financial statements prepared at the end of the month
◉Safeguards. Answer: Which of the following is NOT a reason for
problems occurring in the financial statements?
◉Failure to record depreciation expense. Answer: Which one of the
following errors causes net income to be overstated?
