Free WorldatWork B1 Exam Questions

Become WorldatWork Certified with updated B1 exam questions and correct answers

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Total 90 Questions | Updated On: Jun 15, 2026

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Question 1

Regarding fixed and variable costs, what tends to happen as revenue increases?

A : Variable costs decrease

B : Fixed costs decrease

C : Variable costs increase and consume a higher percent of revenue

D : Fixed costs remain the same and consume a lower percent of revenue

Answer: D

Question 2

Why are lump-sum increases generally used?

A : To control annual fixed costs from base pay adjustments

B : To elevate employees who are below the midpoint in the range

C : To reward employees under short-term incentive plans

D : To make up for benefits not provided by the organization

Answer: A

Question 3

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A : It remains the same.

B : It decreases because variable costs are increasing.

C : It increases at the same rate as variable costs.

D : It becomes increasingly higher as revenues increase.

Answer: D

Question 4

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A : It remains the same.

B : It decreases because variable costs are increasing.

C : It increases at the same rate as variable costs.

D : It becomes increasingly higher as revenues increase.

Answer: D

Question 5

Which of the following statements best describes defined contribution (DC) plans?

A : They require complex actuarial calculations and assumptions.

B : The benefit is based on a formula that considers pay and service.

C : They generally provide better benefits to employees with longer service.

D : The employee assumes the risk for the investments.

Answer: D

Page: 1 / 18

Total 90 Questions | Updated On: Jun 15, 2026

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