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WGU D101 Cost and Managerial Accounting
ACTUAL EXAM QUESTIONS AND ANSWERS
2026/2027 | Pre-Assessment PA Simulation |
Aligned with Official Competency Weights | Pass
Guaranteed - A+ Graded
Competency Distribution:
• Domain 1: Cost Concepts, Behavior & Classification (20%) = 13 questions
• Domain 2: Job Order Costing & Process Costing (25%) = 16 questions
• Domain 3: Activity-Based Costing (ABC) (10%) = 7 questions
• Domain 4: Cost-Volume-Profit (CVP) Analysis (20%) = 13 questions
• Domain 5: Budgeting & Variance Analysis (15%) = 10 questions
• Domain 6: Relevant Costing & Short-Term Decision Making (10%) = 6 questions
Total: 65 Questions
Domain 1: Cost Concepts, Behavior & Classification (20%)
Q1
Which of the following costs is most likely a variable cost for a manufacturing company?
• A. Factory rent
• B. Direct materials [CORRECT]
• C. Production supervisor salary
• D. Depreciation on factory equipment (straight-line)
Correct Answer: B
Rationale: Variable costs change in total in direct proportion to changes in activity level. Direct
materials are consumed in production; total cost increases as more units are produced. Factory
rent (A), supervisor salary (C), and straight-line depreciation (D) remain constant in total within
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the relevant range; they are fixed costs. The supervisor salary may appear variable but is
typically fixed regardless of production volume within capacity limits.
Q2
Which cost classification is correct for the salary of a quality control inspector in a
manufacturing plant?
• A. Direct material, product cost
• B. Direct labor, product cost
• C. Manufacturing overhead, product cost [CORRECT]
• D. Selling expense, period cost
Correct Answer: C
Rationale: Quality control inspectors do not work directly on the product (not direct labor) and
are not materials. Their salaries are indirect manufacturing costs, classified as manufacturing
overhead (MOH). MOH, along with direct materials and direct labor, comprise product costs
(inventoriable costs). Period costs (D) are non-manufacturing expenses like selling and
administrative costs. Direct material (A) and direct labor (B) are prime costs, not overhead.
Q3
A company reports the following costs: Direct materials $50,000, Direct labor $80,000,
Manufacturing overhead $120,000, Selling expenses $40,000, Administrative expenses $30,000.
What is the total product cost?
• A. $130,000
• B. $170,000
• C. $250,000 [CORRECT]
• D. $320,000
Correct Answer: C
Rationale: Product costs (manufacturing costs) include direct materials, direct labor, and
manufacturing overhead. Calculation: $50,000 + $80,000 + $120,000 = $250,000. Selling and
administrative expenses ($70,000 total) are period costs, expensed immediately rather than
inventoried. Distractor A includes only prime costs (DM + DL). Distractor B includes DM + DL
+ half of MOH. Distractor D incorrectly includes all costs.
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Q4
Using the high-low method, what is the estimated variable cost per unit?
Table
Copy
Month Units Produced Total Cost
Jan 1,000 $15,000
Feb 1,500 $20,000
Mar 2,000 $24,000
Apr 2,500 $28,000
• A. $6.50
• B. $7.50
• C. $8.67 [CORRECT]
• D. $9.00
Correct Answer: C
Rationale: The high-low method uses the highest and lowest activity levels (units), not costs.
• High point: 2,500 units, $28,000
• Low point: 1,000 units, $15,000
• Change in cost: $28,000 - $15,000 = $13,000
• Change in activity: 2,500 - 1,000 = 1,500 units
• Variable cost per unit = $13,,500 = $8.67 per unit (rounded)
Distractor A incorrectly uses high/low costs instead of activity. Distractor B uses incorrect
calculation ($20,000 - $15,000)/(1,500 - 1,000). Distractor D uses $13,000/1,000 units.
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Q5
Referring to the data in Q4, what is the estimated total fixed cost using the high-low method?
• A. $5,000
• B. $6,333 [CORRECT]
• C. $7,000
• D. $8,000
Correct Answer: B
Rationale: Using the variable cost from Q4 ($8.67 per unit), calculate total fixed cost:
• Total cost at high point: $28,000
• Variable portion: 2,500 units × $8.67 = $21,675
• Fixed cost = $28,000 - $21,675 = $6,325 (rounding to $6,333)
Alternatively at low point: $15,000 - (1,000 × $8.67) = $15,000 - $8,667 = $6,333. Minor
rounding differences may occur. Distractor A uses $15,000 - (1,000 × $10). Distractor C uses
incorrect variable rate. Distractor D is the difference between high and low costs without proper
allocation.
Q6
Which of the following is NOT a characteristic of a mixed cost?
• A. Contains both fixed and variable components
• B. Can be represented by the equation Y = a + bX
• C. Changes in direct proportion to activity [CORRECT]
• D. Requires separation for CVP analysis
Correct Answer: C
Rationale: Mixed costs (semivariable costs) contain both fixed and variable elements. They do
NOT change in direct proportion to activity—that describes pure variable costs. Mixed costs
follow Y = a + bX where "a" is fixed and "bX" is variable. They must be separated into
components for CVP analysis. Options A, B, and D are true statements about mixed costs.
Q7
WGU D101 Cost and Managerial Accounting
ACTUAL EXAM QUESTIONS AND ANSWERS
2026/2027 | Pre-Assessment PA Simulation |
Aligned with Official Competency Weights | Pass
Guaranteed - A+ Graded
Competency Distribution:
• Domain 1: Cost Concepts, Behavior & Classification (20%) = 13 questions
• Domain 2: Job Order Costing & Process Costing (25%) = 16 questions
• Domain 3: Activity-Based Costing (ABC) (10%) = 7 questions
• Domain 4: Cost-Volume-Profit (CVP) Analysis (20%) = 13 questions
• Domain 5: Budgeting & Variance Analysis (15%) = 10 questions
• Domain 6: Relevant Costing & Short-Term Decision Making (10%) = 6 questions
Total: 65 Questions
Domain 1: Cost Concepts, Behavior & Classification (20%)
Q1
Which of the following costs is most likely a variable cost for a manufacturing company?
• A. Factory rent
• B. Direct materials [CORRECT]
• C. Production supervisor salary
• D. Depreciation on factory equipment (straight-line)
Correct Answer: B
Rationale: Variable costs change in total in direct proportion to changes in activity level. Direct
materials are consumed in production; total cost increases as more units are produced. Factory
rent (A), supervisor salary (C), and straight-line depreciation (D) remain constant in total within
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the relevant range; they are fixed costs. The supervisor salary may appear variable but is
typically fixed regardless of production volume within capacity limits.
Q2
Which cost classification is correct for the salary of a quality control inspector in a
manufacturing plant?
• A. Direct material, product cost
• B. Direct labor, product cost
• C. Manufacturing overhead, product cost [CORRECT]
• D. Selling expense, period cost
Correct Answer: C
Rationale: Quality control inspectors do not work directly on the product (not direct labor) and
are not materials. Their salaries are indirect manufacturing costs, classified as manufacturing
overhead (MOH). MOH, along with direct materials and direct labor, comprise product costs
(inventoriable costs). Period costs (D) are non-manufacturing expenses like selling and
administrative costs. Direct material (A) and direct labor (B) are prime costs, not overhead.
Q3
A company reports the following costs: Direct materials $50,000, Direct labor $80,000,
Manufacturing overhead $120,000, Selling expenses $40,000, Administrative expenses $30,000.
What is the total product cost?
• A. $130,000
• B. $170,000
• C. $250,000 [CORRECT]
• D. $320,000
Correct Answer: C
Rationale: Product costs (manufacturing costs) include direct materials, direct labor, and
manufacturing overhead. Calculation: $50,000 + $80,000 + $120,000 = $250,000. Selling and
administrative expenses ($70,000 total) are period costs, expensed immediately rather than
inventoried. Distractor A includes only prime costs (DM + DL). Distractor B includes DM + DL
+ half of MOH. Distractor D incorrectly includes all costs.
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Q4
Using the high-low method, what is the estimated variable cost per unit?
Table
Copy
Month Units Produced Total Cost
Jan 1,000 $15,000
Feb 1,500 $20,000
Mar 2,000 $24,000
Apr 2,500 $28,000
• A. $6.50
• B. $7.50
• C. $8.67 [CORRECT]
• D. $9.00
Correct Answer: C
Rationale: The high-low method uses the highest and lowest activity levels (units), not costs.
• High point: 2,500 units, $28,000
• Low point: 1,000 units, $15,000
• Change in cost: $28,000 - $15,000 = $13,000
• Change in activity: 2,500 - 1,000 = 1,500 units
• Variable cost per unit = $13,,500 = $8.67 per unit (rounded)
Distractor A incorrectly uses high/low costs instead of activity. Distractor B uses incorrect
calculation ($20,000 - $15,000)/(1,500 - 1,000). Distractor D uses $13,000/1,000 units.
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Q5
Referring to the data in Q4, what is the estimated total fixed cost using the high-low method?
• A. $5,000
• B. $6,333 [CORRECT]
• C. $7,000
• D. $8,000
Correct Answer: B
Rationale: Using the variable cost from Q4 ($8.67 per unit), calculate total fixed cost:
• Total cost at high point: $28,000
• Variable portion: 2,500 units × $8.67 = $21,675
• Fixed cost = $28,000 - $21,675 = $6,325 (rounding to $6,333)
Alternatively at low point: $15,000 - (1,000 × $8.67) = $15,000 - $8,667 = $6,333. Minor
rounding differences may occur. Distractor A uses $15,000 - (1,000 × $10). Distractor C uses
incorrect variable rate. Distractor D is the difference between high and low costs without proper
allocation.
Q6
Which of the following is NOT a characteristic of a mixed cost?
• A. Contains both fixed and variable components
• B. Can be represented by the equation Y = a + bX
• C. Changes in direct proportion to activity [CORRECT]
• D. Requires separation for CVP analysis
Correct Answer: C
Rationale: Mixed costs (semivariable costs) contain both fixed and variable elements. They do
NOT change in direct proportion to activity—that describes pure variable costs. Mixed costs
follow Y = a + bX where "a" is fixed and "bX" is variable. They must be separated into
components for CVP analysis. Options A, B, and D are true statements about mixed costs.
Q7
