WGU Accounting-for-Decision-Makers Exam With Confidence Using Practice Dumps

The correct answer is C . Under activity-based costing (ABC) , overhead is reassigned based on the activities that actually drive cost consumption. ABC often reveals that one product was previously undercosted while another was overcosted under traditional volume-based allocation. OpenStax explains that ABC can shift overhead between products and provide more accurate product-cost information for pricing and decision-making.

For Product A , the new overhead rises from $3 to $8 , increasing total unit cost from $6 ($2 + $1 + $3) to $11 ($2 + $1 + $8). Since the current selling price is only $8 , Product A is now shown as underpriced, so its selling price would likely need to increase . For Product B , overhead falls from $4 to $2 , reducing total unit cost from $9 to $7 . With a current selling price of $12 , Product B appears more profitable than previously believed, so management could choose to decrease its price if needed for competitive reasons. Therefore, the most logical result is Product A price up, Product B price down , which is Option C .

The correct answer is D . Management accounting is designed primarily for internal users such as managers, department heads, and executives. Its purpose is to provide timely, detailed, and decision-oriented information to support planning, control, evaluation, and operational decisions. Sources describing managerial accounting emphasize that it is customized to internal needs rather than focused on external financial statement users.

Option A is incorrect because management accounting does not mainly present information about managers’ qualifications. Option B is more aligned with financial accounting , which summarizes overall economic performance for external users such as shareholders. Option C is also incorrect because management accounting is not aimed primarily at outside stakeholders. Although the wording “predict inconsistencies in finances” is not textbook-perfect, Option D is the only answer that correctly identifies the internal decision-making role of management accounting. In practice, management accounting may include budgets, performance reports, cost analyses, forecasts, and variance reports used within the company. Therefore, the best answer is the one stating that it provides data to help users within a company make decisions.

The correct answer is D. $152,500 . To find October cash payments , include the portions of purchases paid in October from three different months:

15% of August purchases

35% of September purchases

50% of October purchases

Now calculate each amount:

15% of August ($75,000) = $11,250

35% of September ($225,000) = $78,750

50% of October ($125,000) = $62,500

Now add them:

$11,250 + $78,750 + $62,500 = $152,500

This is the total forecasted cash payment for October under the company’s payment pattern. Budgeted cash disbursement questions often require tracking the timing of payments across multiple months, not just the current month’s purchases.

Option B includes only 50% of October purchases. Option C includes only 35% of September purchases. Option A includes only part of the earlier-month carryover. Since October cash payments must include all three applicable portions, the correct total is $152,500 , making Option D the right answer.