WGU C213 Objective Assessment– Accounting for Decision Maker Review (Latest 2026/ 2027 Update) | 100% Verified Questions & Answers | Grade A

WGU C213 Objective Assessment– Accounting for Decision Maker Review (Latest 2026/ 2027 Update) | 100% Verified Questions & Answers | Grade A QUESTION Which requirements must accounting firms that audit public companies meet under the Sarbanes-Oxley Act? Answer: Firms must not provide certain non-audit services to audit clients, such as management functions or legal services. & Firms must report to and be retained by the audit committee rather than the CFO or other company management. QUESTION Which actions do internal auditors perform to assist in maintaining the integrity of financial statements? Answer: They search for and investigate fraud. & They review financial records and internal controls. QUESTION What is a significant role of the U.S. Securities and Exchange Commission (SEC) in financial reporting? Answer: They ensure that financial statement users are provided with reliable information to use in decision making QUESTION What does management accounting provide? Answer: 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 QUESTION How does management accounting differ from financial accounting? Answer: Management accounting is used primarily for internal planning, control, and evaluation. QUESTION Which account is seen on the balance sheet of a manufacturing company but not on the balance sheet of a service-oriented company? Answer: Inventory QUESTION What is a cost that will change in the future based upon the decision made? Answer: Differential cost QUESTION Which are examples are period costs? Answer: Administrative expenses & Selling expenses QUESTION 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 Answer: Salary cost of the receptionist Advertising cost QUESTION What role do ethical standards have in management accounting? Answer: To guide the resolution to possible ethical dilemmas that the managerial accountant may encounter QUESTION Which two costs are included when calculating inventory costs? Answer: Direct labor costs Overhead costs QUESTION In which scenario would activity-based costing be more appropriate than traditional costing? Answer: A company produces five different products. The products are highly differentiated and have significantly different demands for their use of overhead costs. QUESTION Which category of ABC activities are machine setup and material movement costs associated with? Answer: Batch-level activities QUESTION 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? Answer: The number of race participants and spectators QUESTION 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? Answer: The price of Product B should be increased. QUESTION Which two concepts are studied in cost-volume-profit analysis? Answer: Profits Cash QUESTION What are two impacts on costs as sales volume increases? Answer: Total fixed costs will stay the same. Fixed costs per unit will decrease. QUESTION A company is experiencing an increase in their bad debt expense. Which change in credit policy would cause this increase? Answer: Credit limits were increased for all customers QUESTION If a company does NOT record accrued wages expense at the end of the year, how does this affect the year-end financial statements? Answer: Overstates owner's equity QUESTION 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 Answer: Overstates assets